mutual funds are not passive bystanders in the market. they make active decisions every month. buying some stocks. selling others. shifting weight across sectors.
in june 2026, they invested ₹50,600 crore in stocks . that is not a small number. the activity reveals where institutional money is moving.
large-caps. the big buys
financial stocks dominated the buying in june. hdfc bank was the largest addition across the industry. mutual funds bought ₹4,100 crore worth of hdfc bank shares . bajaj finance followed closely at ₹4,700 crore . eternal, adani enterprises, and axis bank were also on the buy list .
hdfc bank was the top pick for multiple fund houses. icici prudential mutual fund added ₹3,865 crore in hdfc bank . axis mutual fund added ₹1,076 crore . hdfc mutual fund also added the stock, though the weight declined slightly as the portfolio grew .
the selling side told a different story. asian paints saw ₹1,700 crore in outflows . icici bank and sbi saw reductions of ₹1,700 crore and ₹1,600 crore respectively . reliance industries appeared on both sides some funds bought, others sold.
the top holdings across fund houses
sbi mutual fund, india’s largest fund house with ₹12.80 lakh crore in aum, held hdfc bank at 6.8%, icici bank at 6.4%, and reliance at 5.3% of its portfolio in may . bharti airtel and sbi were at 3.4% and 3.5% respectively .
mirae asset mutual fund had a different allocation. hdfc bank at 6.3%, icici bank at 4.6%, and reliance at 3.1% . bharti airtel and axis bank each held 2.8% .
hdfc mutual fund’s top holdings were icici bank at 5.6%, hdfc bank at 5.2%, and axis bank at 3.4% in may . reliance was at 3.0% . the fund had also built a significant position in eternal, a new-age consumer company, at 1.7% .
mid-caps and small-caps. where the changes are happening
jsw infrastructure was the largest mid-cap addition in june. mutual funds bought ₹4,700 crore worth of the stock . meesho, lenskart solutions, nhpc, and groww were also key additions .
the selling side included ge vernova t&d, bse, hitachi energy, bhel, and aurobindo pharma .
small-cap funds attracted ₹5,602 crore in june, the second-highest among equity categories . nippon india small cap fund, the largest in the category with ₹78,407 crore in aum, added pine labs, union bank of india, and india shelter finance . it exited infosys and godrej consumer products .
invesco india smallcap fund, which runs a concentrated portfolio with 37.35% in its top 10 holdings, added city union bank and meesho, exiting hexaware and wockhardt .
trustmf small cap fund had the highest turnover at 192%, indicating aggressive reshuffling . it added 14 stocks including physicswallah, central depository services, bharat dynamics, and paras defence . it exited bse, persistent systems, and eclerc services .
sectoral patterns. where the money flowed
the biggest divergence between domestic and foreign investors was in financial services. foreign investors sold ₹12,453 crore in the sector. mutual funds bought ₹9,296 crore .
it saw foreign selling of ₹7,444 crore. mutual funds bought ₹1,732 crore . infosys, tech mahindra, and hcl technologies were among the additions .
fmcg saw mutual fund buying of ₹3,545 crore against foreign selling of ₹5,598 crore . hindustan unilever, britannia, and nestle were added . exposure to itc was reduced .
healthcare saw the closest match. mutual funds invested ₹5,139 crore. foreign investors sold ₹4,976 crore . ajanta pharma, divi’s laboratories, and alkem laboratories were added. positions in gland pharma and aurobindo pharma were trimmed .
what this means for investors
mutual fund activity is not a buy signal. it is information.
the data shows where institutional money is moving. financials remain the core holding across fund houses. mid-caps and small-caps are attracting fresh inflows. sectoral rotation is visible in it and fmcg.
december 2025 saw a notable shift in cash holdings. mutual funds reduced cash to ₹1.84 lakh crore in june from ₹1.89 lakh crore in may, the lowest in 2026 . cash ratios declined to 4.53% from 4.79% . lower cash balances signal stronger conviction. they also leave less room to deploy if markets correct.
the new sebi rules on portfolio overlap may change how funds allocate going forward . thematic funds now have a 50% overlap cap with other equity schemes . fund houses must publish monthly overlap disclosures . this could push managers toward more differentiated portfolios.
frequently asked questions
1. which stocks did mutual funds buy the most in june 2026 ?
hdfc bank (₹4,100 crore), jsw infrastructure (₹4,700 crore), and bajaj finance (₹4,700 crore) were the largest additions . adani enterprises, eternal, and axis bank were also key buys .
2. which stocks did mutual funds sell in june ?
asian paints (₹1,700 crore), icici bank (₹1,700 crore), and sbi (₹1,600 crore) saw the largest reductions . reliance industries, ntpc, and hindalco also saw selling .
3. what are the top holdings of sbi mutual fund ?
as of may 2026, the top holdings were hdfc bank (6.8%), icici bank (6.4%), and reliance industries (5.3%) . bharti airtel (3.4%), sbi (3.5%), and l&t (3%) followed .
4. what is the new sebi rule on portfolio overlap ?
thematic and sectoral funds cannot have more than 50% overlap with other equity schemes. fund houses must publish monthly overlap disclosures on their websites .
5. what is the cash holding level of mutual funds ?
cash holdings declined to ₹1.84 lakh crore in june from ₹1.89 lakh crore in may, the lowest in 2026 . the average cash ratio across major amcs fell to 4.53% from 4.79% .
