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Updated: September 14, 2025 23:00
India’s mutual fund landscape continues to show strong conviction in large-cap, high-liquidity stocks, with Infosys and Reliance Industries Limited (RIL) emerging as two of the most widely held equities in August 2025. According to data compiled by ACE MF and reported by Economic Times, over 500 mutual fund schemes held positions in each of these stocks, reflecting their enduring appeal across fund categories and investment strategies.
The list of top 10 stocks owned by more than 500 mutual fund schemes also includes banking heavyweights, telecom leaders, and industrial giants—signaling a preference for stability, growth visibility, and sectoral leadership.
Key Highlights From August Mutual Fund Holdings
- Infosys was held by 632 mutual fund schemes, with a market value of Rs 1.25 lakh crore
- RIL featured in 602 schemes, with mutual funds owning 128.29 crore shares worth Rs 1.74 lakh crore
- HDFC Bank topped the list with 709 schemes and Rs 3.13 lakh crore in holdings
- ICICI Bank followed with 693 schemes and Rs 2.46 lakh crore in market value
- Bharti Airtel, SBI, L&T, Axis Bank, Kotak Mahindra Bank, and Mahindra & Mahindra rounded out the top 10
Sectoral Preferences And Institutional Confidence
The data reveals a strong institutional tilt toward financial services, IT, telecom, and industrials. These sectors have demonstrated resilience amid global volatility and continue to attract both active and passive fund flows.
1. Financials: HDFC Bank, ICICI Bank, SBI, Axis Bank, and Kotak Mahindra Bank dominate mutual fund portfolios due to their consistent earnings, robust asset quality, and leadership in retail and corporate banking.
2. Technology: Infosys remains a cornerstone of IT exposure for mutual funds, offering global revenue streams, strong margins, and predictable cash flows. Its inclusion in over 600 schemes underscores its role as a defensive growth stock.
3. Energy and Conglomerates: RIL’s diversified business model—spanning petrochemicals, telecom, retail, and green energy—makes it a strategic long-term holding. Its presence in 602 schemes reflects broad-based confidence in its execution and expansion plans.
4. Telecom: Bharti Airtel’s inclusion in 631 schemes highlights investor optimism around rising ARPU, 5G rollout, and digital services monetization.
5. Industrials: Larsen & Toubro’s infrastructure exposure and execution capabilities have earned it a place in 560 schemes, with Rs 1 lakh crore in market value.
Fund Strategy And Portfolio Construction
Mutual funds typically build portfolios around liquid, high-quality stocks to manage risk and ensure redemption flexibility. The top 10 stocks owned by over 500 schemes represent core holdings that offer:
- Strong corporate governance
- Consistent dividend payouts
- High institutional ownership
- Inclusion in benchmark indices like Nifty 50 and Sensex
- Sectoral leadership and global exposure
These stocks also serve as anchors for index funds, ETFs, and hybrid schemes, contributing to their widespread adoption across fund categories.
Investor Implications And Market Signals
For retail investors, the mutual fund ownership data offers valuable insights into institutional preferences and conviction levels. Stocks held by hundreds of schemes often exhibit lower volatility, better liquidity, and sustained analyst coverage.
However, high mutual fund ownership can also lead to crowding risk, where adverse news or earnings misses trigger broad-based selling. Investors should monitor valuation metrics and sectoral trends to avoid overexposure.
Forward Outlook
As India’s equity market matures, mutual funds are expected to continue favoring large-cap stocks with proven fundamentals and scalable business models. Infosys and RIL, along with their peers in the top 10 list, are likely to remain central to fund strategies, especially amid global macro uncertainty and domestic growth optimism.
Sources: Economic Times, Trendlyne, WN.com
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