Mutual funds invested INR 1.82 lakh crore in the Indian equities in the financial year 2022-23, primarily due to interest from retail investors and the correction in the stock market, according to data from the Securities and Exchange Board of India (SEBI). The favourable policies of the Indian government, along with its focus on investment-led growth, will drive future earnings growth, while the Production-Linked Incentive policy and China+1 drive are expected to boost the manufacturing sector and contain the country's trade deficit. Financial services, followed by IT, capital goods, auto and healthcare, were the sectors with the highest allocation in mutual fund portfolios.