Mutual Confidence: Eternal And RIL Cement Their Place In Kotak MF’s Top 10 Holdings For August

Kotak Mahindra Mutual Fund, one of India’s largest asset managers with an AUM of Rs 5.63 lakh crore across 154 schemes, has revealed its top equity holdings for August 2025. The latest portfolio data shows that Eternal Ltd and Reliance Industries Ltd (RIL) have secured spots among the fund house’s top 10 stock positions, reflecting strong institutional conviction in both companies despite market volatility.

 

The rankings, compiled by Motilal Oswal Financial Services, highlight a mix of banking, technology, telecom, and consumer-facing stocks, with Eternal’s rise being particularly notable given its relatively recent transformation and aggressive growth trajectory.

 

Key Highlights From Kotak MF’s August Portfolio

 

•⁠  ⁠Eternal Ltd and RIL featured among the top 10 holdings by value  

•⁠  ⁠Eternal’s weight increased by 0.4 percent month-on-month, with 3.44 crore shares added  

•⁠  ⁠RIL’s weight remained unchanged at 2.4 percent, maintaining its long-standing presence  

•⁠  ⁠HDFC Bank and ICICI Bank continued to lead with 4.3 percent and 3.9 percent weight respectively  

•⁠  ⁠SBI, Infosys, Bharti Airtel, Axis Bank, BEL, and Maruti Suzuki rounded out the top 10  

 

Eternal’s Meteoric Rise

 

Formerly known as Zomato, Eternal Ltd has emerged as a mutual fund favorite, driven by its expanding food delivery business, improved cash flows, and strategic diversification. As of August end, 43 mutual funds held Eternal shares valued at Rs 71,746 crore, making it one of the most-owned stocks in the MF universe.

 

Kotak MF’s holding in Eternal stood at 2.5 percent, with a notable increase in allocation compared to July. The stock saw a 12.3 percent rise in mutual fund holdings across the industry, with over 24 crore shares added during the month. Despite modest price movement in August, fund managers appear confident in Eternal’s long-term potential, citing margin expansion and operational efficiency.

 

Reliance Industries: A Steady Pillar

 

RIL maintained its position with a 2.4 percent weight in Kotak MF’s portfolio. The conglomerate’s diversified presence in energy, telecom, retail, and digital services continues to make it a cornerstone holding for institutional investors. While the weight remained unchanged from the previous month, its valuation and strategic importance remain high.

 

RIL’s consistent performance and stable earnings outlook have helped it weather broader market fluctuations, making it a reliable anchor in Kotak MF’s equity strategy.

 

Banking Sector Dominance

 

HDFC Bank and ICICI Bank retained their top spots, accounting for 4.3 percent and 3.9 percent of the portfolio respectively. These positions reflect the fund house’s continued confidence in private sector banking, supported by strong credit growth, digital adoption, and asset quality improvements.

 

SBI also saw a slight uptick in weight to 2.7 percent, signaling renewed interest in public sector banking amid improving fundamentals and capital adequacy.

 

Other Notable Holdings

 

•⁠  ⁠BEL (Bharat Electronics Ltd): Held at 2.2 percent, though its weight declined by 0.1 percent  

•⁠  ⁠Bharti Airtel: Maintained at 2.1 percent, reflecting telecom sector resilience  

•⁠  ⁠Axis Bank: Increased to 2 percent, up 0.1 percent from July  

•⁠  ⁠Infosys: Stable at 1.9 percent, underscoring steady demand for IT services  

•⁠  ⁠Maruti Suzuki: Held at 1.7 percent, with 2.37 lakh shares sold but weight rising by 0.2 percent due to price movement  

 

Market Context And Strategic Outlook

 

August 2025 was marked by moderate market weakness, with the Nifty slipping 1.4 percent and overall mutual fund AUM declining by 0.6 percent month-on-month. Despite this, Kotak MF’s portfolio adjustments suggest a balanced approach—retaining core holdings while selectively increasing exposure to high-growth names like Eternal.

 

Sectoral rebalancing was evident, with increased allocations to consumer, telecom, and technology, while weights in oil and gas, healthcare, and capital goods saw moderation.

 

Looking Ahead

 

Kotak Mutual Fund’s August portfolio reflects a blend of stability and strategic growth bets. Eternal’s inclusion among the top 10 signals a shift in institutional sentiment toward new-age businesses, while RIL and banking giants continue to anchor the fund’s long-term strategy. As market conditions evolve, Kotak MF’s diversified approach positions it well to navigate volatility and capture emerging opportunities.

 

Sources: Economic Times, LiveMint, Moneycontrol.