In 2025, Indian banks are unusually investing heavily in mutual funds, with investments surging 91% to ₹1.19 lakh crore. This shift is driven by suboptimal credit growth, surplus liquidity, and favorable market conditions. Banks are primarily utilizing liquid and money market schemes for higher short-term returns, rather than direct lending.
ETMarkets Smart Talk| Markets at an inflection point; expect 40–50% gains over 36 months: ASK Hedge Solutions’ Vaibhav Sanghavi
Indian stock markets are at a key turning point. Experts predict a strong rally over the next two to three years, potentially delivering 40-50% returns.
December 8, 2025