"NPS' pension assets stood at $30 billion at the end of July. We estimate their equity assets to be at $3.5 billion," the report said.
The report noted that EPFO, which has raised its equity allocation to 15 per cent in the current fiscal from 10 per cent in 2016-17, is "likely to invest Rs 250-300 billion in equities in 2017-18 of which Rs 57 billion has been invested this year thus far".
In August, equity flows were positive for the 17th straight month.
Year-to-date, domestic mutual funds have received equity inflows of $18.6 billion (tracking at $2.3 billion per month).
"By the end of the month, equity mutual fund assets under management (AUM) stood at $111 billion, and as a percentage of market cap rose to 5.3 per cent, its highest level since July 2000," Morgan Stanley said.
"Similarly, equity ETF assets rose to new highs of $8.4 billion. Year-to-date, ETF inflows stood at $2.6 billion (Rs 169 billion)," it added.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)