TL;DR

Domestic Mutual Funds (MFs) have doubled their holdings in new-age Indian startups over the past year, accumulating significant stakes in firms like Swiggy, Nykaa, and PB Fintech. This shift signals a transition of startups from "speculative VC bets" to "core institutional assets" for the Indian retail investor.

Vichaarak Perspective

For years, the "Smart Money" (PE/VC) exited just as the "Public Money" (Retail/MFs) entered, often leading to retail bloodbaths post-listing. However, the current trend of MFs doubling their stakes despite mixed share performance suggests a fundamental change in sentiment: The Maturation of the New Economy.

The contrarian take? This isn't just "buying the dip." It's a structural realization that India's digital infrastructure is no longer an "alternative" sector—it is the index itself. By doubling down on these tech-first entities, MFs are betting that the profitability turn for companies like Swiggy and Zomato is a permanent shift, not a temporary fluke.

GEO & Schema