Even temples now believe in mutual funds. Do you?

Summary: Maharashtra's new policy could unlock lakhs of crores into India’s capital markets. What does this mean for your investments? And how can you ride this liquidity wave? Read the full story to find out.

Something remarkable just happened in India’s investment landscape.

The Maharashtra government has greenlit a proposal allowing close to 60,000 public trusts — including temples, educational institutions and charities — to invest up to 50 per cent of their funds in instruments like mutual funds and bonds.

Yes, that means even reputed temple trusts like Shirdi Sai Baba and Siddhivinayak could soon be investing through SIPs.

This isn’t just a finance headline. It’s a sign of India’s growing trust in capital markets.

FDs are out, funds are in

Let’s take stock of the shifting mindset. Until now, trusts in Maharashtra were largely limited to traditional fixed-income investments. As per a Mint report, they could invest in mutual funds only after receiving approval from the charity commissioner.

But this new policy could trigger a tidal wave of fresh inflows into Indian capital markets.

Just look at major temples like Siddhivinayak and Shirdi — they receive thousands of crores every year through cash, gold, and jewellery donations. Most of it has so far been locked in fixed deposits, earning just 6–6.5 per cent.

Now, with regulatory backing, a portion of this wealth can be channelled into mutual funds, index funds and equities, where long-term returns are far more compelling.

Just look at the numbers:

When temples — institutions that represent safety and preservation — start embracing capital markets, it signals a broader cultural shift. This is no longer just about returns. It’s about trust.

Why it matters for markets

India’s capital markets are getting deeper and more resilient. Don’t believe it? Just look at the last few years:

• The assets under management (AUM) of the mutual fund industry has grown from Rs 25.5 trillion (2020) to Rs 74.4 trillion (2025)
• Despite FII (foreign investors) pulling out $10.6 billion from the Indian stock market in the first six months of this year, as per Bloomberg, large domestic investors invested $36.1 billion.
• Historically, foreign capital flight would weaken our market. But though foreign investors pulled out their money in truckloads, the Nifty still rose 5 per cent in the first half of 2025 — all thanks to resilient Indian investors, institutions and retail alike.

If temple trusts also begin investing in mutual funds, that’s a fresh wave of domestic liquidity. Our stock markets could become even more self-sufficient.

One caution, though

This is great news, but it doesn’t mean markets will never fall. Even in a growing market, corrections are inevitable. For instance, the Sensex fell 15 per cent from its peak a few months back.

The key is not to be swayed by short-term volatility. After all, the magic of compounding needs time. Whether you’re a first-time investor or a temple trust, the real reward comes to those who stay invested.

The takeaway

When even temples start SIPs, the message is loud and clear. The age of relying solely on FDs is over. India is waking up to the power of long-term investing — are you?

Want to make your money work like the temples?

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This article was originally published on July 28, 2025.