The average shareholding of mutual funds (MFs) in the BSE 500 companies went up by 38 basis points (bps) during the December quarter, even as foreign institutional investors (FIIs) trimmed theirs by 16 bps, Capitaline data showed.
In the three months to December, MFs had invested Rs 240 billion in domestic stocks, whereas FII buying was relatively muted at Rs 83 billion.
MF ownership in Indian companies has nearly doubled since 2014, thanks to huge consistent buying. FIIs, biggest non-promoter shareholders, have seen their holdings dip during the same period. Market players predict the trend to continue, as domestic financial savings could