Marking a major structural inversion in who controls India's investment industry, domestic mutual fund assets under custody have officially surpassed those of foreign institutional investors (FIIs) for the first time in history. The milestone was two years in the making as domestic money floods into equities even as foreign investors head for the exit.
According to the latest NSDL data as of June 2026, total mutual fund assets under custody (AUC), encompassing equity, debt, and exchange-traded funds (ETFs), surged to Rs 76.41 lakh crore. This edge-of-the-seat flip places domestic funds marginally ahead of FII assets, which stood at Rs 76.22 lakh crore.
