Mumbai: Domestic investors will shape India’s future, not foreign institutional investors (FIIs), Union Minister of Commerce and Industry, Piyush Goyal, said on Saturday, urging the industry to safeguard small investors and minimise market volatility.
Goyal asserted that assets under management (AUM) in the mutual funds industry at nearly Rs 70 lakh crore — and soon to be Rs 100 lakh crore — will dominate the market and domestic investors will determine India’s future, not the FIIs.
The mutual funds industry has played a pivotal role in India’s growth story by encouraging financial literacy and taking innovative financial ideas to the industry and the investors, said Goyal during his address at the Association of Mutual Funds in India (AMFI) Summit 2025 here.
The minister complimented the domestic investors for filling the gap created by the FIIs post-Covid.
“Collective investment methods like SIPs, along with domestic investors, supported the market. They helped in spreading financial awareness and financial products to every part of the country,” the minister told the gathering.
Large fund inflows, compulsions of the market to deploy capital, and fear among investors of missing out on attractive stocks brought crises among investors during rightsizing.
“There has been a lot of misinformation flow about the unending ability of the market to go on a one-way street, he noted, and described the unpredictability of the stock market as a wakeup call for the industry and its small investors,” said Goyal.
AMFI should also become conscious of its duties by isolating misguided investors from the rest, he emphasised.
Companies with mettle have maintained reasonable prices in the stock market during recent turbulence. “Duties and responsibilities of the industry towards the market are larger than the profitable returns investors enjoy in the short term,” Goyal noted.
He also added that government spending and private capex are showing signs of comeback.
Elaborating on the responsibilities of the mutual funds industry towards its investors, the minister urged the participants to be more diligent in cautioning investors from taking risks.
The Union Minister hoped that such initiatives would spur India’s growth story for the next 22 years.
