MFs gain larger share in June quarter; FPIs drop to lowest in 4 years

While MF ownership is still a fourth of FPIs, given the structural uptrend in domestic equity flows, experts believe it is only a matter of time before this gap narrows further

In the past three years, mutual funds’ (MFs) equity investments have accelerated even as foreign portfolio investors (FPI) inflows have seen massive de-growth from the FY15 peak. This reflects in the latest June quarter shareholding data, where MF ownership in the top 200 stocks — which account for 75 per cent of India’s market capitalisation — has scaled new highs, while that of FPIs has dropped to its lowest level in four years. For the quarter ended June 2018, MF holding in BSE200 firms stood at 6.42 per cent, up 2.4 times in four years. 

On the other hand, FPI holding