Pension funds now dominate large‑cap purchases, eclipsing mutual funds' share in the top 100 companies, according to CIO Harish Krishnan of Aditya Birla Sun Life AMC.
Pension funds’ equity allocation sits between 65% and 70%, surpassing the 50% allocation typical in prior cycles, and outpacing mutual funds' average purchase rate in the same segment.
This shift translates into a broader base of long‑term capital for Indian equities, with pension funds' horizons extending beyond the 5‑10 year window of most SIPs — a source of steadier, patient money.
Large‑cap indices edged up 0.3% on the day, reflecting the renewed institutional interest, while the NSE Nifty 50 reported a 0.2% gain, a modest lift amid lingering uncertainty.
Yet crude oil price volatility and West Asian geopolitical tensions still weigh on sentiment; dynamic asset allocation funds, already at 65–70% equity exposure, have less than a 10–15 percentage‑point headroom to move toward 80%.
Krishnan cautions that domestic flows will need to sustain momentum as macro heads up; the next earnings season will test whether the market can absorb further institutional buying without a full correction.