Mutual funds see 40% drop in inflows; stoppage rates high for preferred investment plans

A man walks past the logo of the National Stock Exchange at its headquarters in Mumbai on Sept. 17, 2025. Rising inflation, near stagnant market returns in the past two years and sluggish private investment -- all compounded by the ongoing U.S. war with Iran -- are weighing on economic confidence even as policymakers continue to project optimism. © Reuters

BENGALURU -- While India's economy continues to expand faster than most major peers, a growing number of retail investors are pulling back from domestic equities and questioning whether the country's future industries can deliver the returns that once made India a favorite among global investors.

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