Did Mutual Funds Invest Rs 8,752 Cr in IPOs for Q2 FY26?
Click to start listening
Synopsis
The Indian mutual fund industry has actively invested over Rs 8,752 crore in IPOs during Q2 FY26, signaling a strong commitment to emerging small-cap companies. With significant inflows in equity schemes and record SIP contributions, this trend highlights a strategic pivot towards scalable businesses for superior long-term returns.
Key Takeaways
- Mutual funds invested over Rs 8,752 crore in IPOs in Q2 FY26.
- Equity mutual funds saw a significant inflow of Rs 1,06,554 crore.
- Debt schemes faced an outflow of Rs 3,156 crore.
- SIP contributions hit a record high of Rs 29,361 crore.
- FIIs were net sellers while DIIs remained strong buyers.
New Delhi, Nov 10 (NationPress) The Indian mutual fund sector has demonstrated impressive engagement with newly listed firms, investing over Rs 8,752 crore in various initial public offerings (IPOs) during the quarter concluding in September 2025 (Q2 FY26), as reported on Monday.
A significant portion of these investments is concentrated in the small-cap segment.
During the same timeframe, equity mutual fund schemes recorded an inflow of Rs 1,06,554 crore, which is a substantial increase from Rs 66,869 crore in the previous quarter (Q1 FY26), according to Ventura's findings.
In contrast, debt schemes experienced an outflow of Rs 3,156 crore, a notable shift from the inflow of Rs 2,01,516 crore observed in the preceding quarter.
Hybrid schemes also saw a significant inflow of Rs 45,570 crore during this period, following a previous inflow of Rs 58,235 crore.
Moreover, monthly SIP contributions reached a record high of Rs 29,361 crore by the end of September, compared to Rs 27,269 crore in June.
This data underscores the mutual fund industry's strategic focus on smaller, scalable enterprises that have the potential for exceptional long-term growth.
The report noted that the Nifty50 index decreased by 3.6 percent in the July-September quarter, contrasting with an increase of 8.5 percent in the preceding quarter.
Additionally, the BSE Midcap and BSE Small-Cap indices dropped by 4.1 percent and 4.6 percent, respectively, compared to increases of 12.8 percent and 17.3 percent earlier.
Throughout this quarter, Foreign Institutional Investors (FIIs) were net sellers amounting to Rs 76.62 billion in the equity market, a stark contrast to Rs 38.67 billion in net purchases in the previous quarter.
On the other hand, Domestic Institutional Investors (DIIs) continued their buying spree, recording a net inflow of Rs 221.11 billion in the September 2025 quarter, up from Rs 141.62 billion in the previous quarter.
The report further elaborated that from April to September 2025, FIIs faced net outflows of Rs 37.9 billion, while DIIs remained strong contributors with Rs 362.7 billion in inflows. In the same period last year, FIIs had net inflows of Rs 89.7 billion, and DIIs invested Rs 232.4 billion.
Point of View
I observe that the Indian mutual fund industry's robust investment in IPOs signals a strategic shift towards smaller, promising businesses. This approach not only reflects confidence in market opportunities but also highlights a broader trend of domestic investors taking the lead in uncertain times, fostering resilience in the financial ecosystem.
NationPress
11/11/2025
Frequently Asked Questions
What is the total investment by mutual funds in IPOs for Q2 FY26?
Mutual funds invested over Rs 8,752 crore in IPOs during the quarter ending September 2025.
How did equity mutual fund inflows compare between Q1 and Q2 FY26?
Equity mutual fund schemes saw an inflow of Rs 1,06,554 crore in Q2 FY26, up from Rs 66,869 crore in Q1 FY26.
What were the trends for debt and hybrid mutual fund schemes?
Debt schemes experienced an outflow of Rs 3,156 crore, while hybrid schemes had an inflow of Rs 45,570 crore during Q2 FY26.
What record did monthly SIP contributions reach?
Monthly SIP contributions reached an all-time high of Rs 29,361 crore by the end of September.
What was the performance of FIIs and DIIs during this period?
FIIs were net sellers with outflows of Rs 76.62 billion, while DIIs continued as net buyers with inflows of Rs 221.11 billion.
