Mumbai, Dec 19 (AHN) Domestic investors have pumped around Rs 4.5 lakh crore into the equity markets this year through mutual funds and other indirect investment routes, showing a clear shift in household savings towards market-linked assets, according to a report by the National Stock Exchange.

The report said India’s retail investor base has expanded rapidly after the pandemic. The number of individual investors has jumped from nearly three crore in 2019 to more than 12 crore in 2025.

This growth has been supported by rising participation not only through direct equity investments but also through mutual funds and other market-linked products.

Since 2020, total household investments in market-linked instruments have reached about Rs 17 lakh crore, pointing to a long-term change in how Indian households save and invest.

The exchange noted that the sharp rise in investor numbers has gone hand in hand with stronger inflows into equities, with nearly Rs 4.5 lakh crore invested by households this year alone.

While domestic investors remained strong, foreign portfolio investors showed limited interest in Indian equities during the year.

Overseas investors continued to reduce their exposure, but the report said rising domestic participation helped offset the impact of volatile foreign flows and allowed markets to absorb external shocks more smoothly.

The strength of domestic investors was also visible in the primary market. After a record year in 2024, capital raised in 2025 has already crossed earlier highs.

The report pointed out that global trade uncertainty remained a major challenge during the year.

India faced a sharp increase in tariffs on exports to the United States, with duties rising by an additional 50 per cent, even as talks on a bilateral trade agreement continued.

These developments affected corporate earnings and capital flows in the early part of the year.

However, the report added that market volatility also created space for adjustment.

Domestic investors absorbed price swings, corporate earnings improved by the September quarter, and better financial literacy led to more stable and long-term investment behaviour.