Small investors in India resist FII sell-offs

Small mutual fund investors in India are maintaining their investments despite significant selling by foreign institutional investors (FIIs) since September 2024. Domestic investors have added nearly Rs 1.88 lakh crore through sustained contributions, showcasing their commitment. In February 2025, mutual fund inflows remained positive for the 48th consecutive month, totaling Rs 29,303 crore. Although this was a 26% decline from January, it reflects the resilience of domestic investors amid market volatility. Systematic Investment Plan (SIP) contributions also increased, with the average ticket size rising. Despite ongoing FII sell-offs, retail investors are providing crucial support to the Indian stock market. Their continued participation helps stabilize the market, but challenges remain as FIIs still have significant influence. The future of this trend depends on global economic conditions.