Equity Investors in India Despite ‘Smart Money’ Exiting Market

• Indian investors remain confident in India’s long-term growth, while foreign investors have reduced their exposure since January 2025.

• Net inflows into equity mutual funds increased by 81% to ₹42,702 crore in July 2025, from ₹23,587 in the previous month.

• Net contribution into systematic investment plans (SIPs) increased by 4.1% to ₹28,464 crore in the same month.

• AMFI Chief Executive Officer Venkat Chalasani attributed the confidence in India’s growth story to the temporary uncertainties from tariffs.

• Elara Capital report suggests that “smart money” is moving out of the Indian markets, focusing on India’s long-term growth story.

• As of July 31, 2025, foreign portfolio investors sold a net of ₹17,741 crore in Indian equity.

• Motilal Oswal’s report also revealed a similar trend, with promoters of private companies reducing their stake in India to 46.9% in June 2025.