Mutual Fund Stocks : In a notable shift that could reshape many investment strategies, mutual fund houses have realigned their portfolio allocations, giving more weight to certain high-potential sectors while trimming exposure to traditional giants. According to Motilal Oswal Financial Services’ latest fund portfolio update, NBFCs, retail, healthcare, telecom, and consumer durables are seeing a surge in mutual fund inflows.

At the same time, exposure to private banks, technology, auto, and FMCG stocks has declined. This pivot reflects changing market dynamics and investors’ focus on sectors showing stronger near-term and structural growth.

💹 Equity AUM Hits ₹36.6 Lakh Crore – Retail Surge Behind the Boom

SIPs Touch Record Highs as Investor Sentiment Improves

The month of June witnessed a 4.3% increase in equity assets under management (AUM), touching an all-time high of ₹36.6 lakh crore. This growth was driven by a 3.1% rally in Nifty and a jump in equity inflows from ₹201 billion in May to ₹246 billion in June.

SIP contributions also hit record levels, pointing to growing retail participation in mutual funds. With long-term wealth creation on the radar, retail investors are increasingly taking positions in growth-oriented sectors.

🔍 Sectoral Allocation: Where Is the Smart Money Going?

Big Gains in NBFCs, Retail, Healthcare & Telecom

Here’s how mutual funds changed their bets in June 2025:

• NBFCs: Increased from 5.3% to 5.6%
• Retail: From 2.6% to 2.9%
• Consumer Durables: Rose to 2.5% from 2.1%
• Healthcare: Up to 7.4%
• Telecom: Climbed to 3.5%, a 59-month high

In contrast, private banks dropped to 17.9% from 18.4% in May, and technology fell to 8.1% — the lowest in a year.

📈 Top Stocks Mutual Funds Are Buying and Selling

Fresh Buying in Bharti Airtel, Reliance, and More

Across major indices, mutual fund managers have been selective:
In Nifty 50:
✔ Increased exposure to Bharti Airtel, Asian Paints, Reliance Industries, and HDFC Bank
✘ Trimmed stakes in Infosys and HCL Technologies

In Nifty Midcap 100:
✔ Added Vishal Mega Mart, REC, Jindal Stainless, and APL Apollo
✘ Reduced holdings in Trent and Persistent Systems

In Nifty Smallcap 100:
✔ Boosted investments in Linde India, Balrampur Chini, Lux Industries, KSB, and Bank of Maharashtra
✘ Cut positions in Nazara Technologies, Dalmia Bharat Sugar, and Tejas Networks

🧭 What This Means for Retail Investors

Align Your Portfolio with the Evolving Strategy

This sectoral rotation by mutual funds signals growing confidence in discretionary consumption, tech-enabled healthcare, and telecom infrastructure. For retail investors, aligning their portfolios with these themes can potentially enhance returns in the medium to long term.

While trimming of traditional sectors like private banks and IT doesn’t signal weakness, it suggests muted near-term performance expectations. Diversifying across emerging segments might offer better risk-adjusted returns.

📊 Sector-Wise Positioning Compared to BSE 200

• Overweight Sectors: Healthcare, Consumer Durables, Chemicals, Capital Goods, and Retail
• Underweight Sectors: Consumer Staples, Oil & Gas, Private Banks, Technology, Utilities

This strategy indicates a preference for growth and innovation-driven sectors over defensive and legacy plays.

🏁 Final Takeaway: Are You Riding the Trend?

The recent reallocation by mutual funds could be an early indication of the next big wave in equity markets. Staying updated on fund flows and sectoral preferences is crucial for individual investors looking to stay ahead.

If your portfolio still leans heavily on traditional sectors, it may be time to review and rebalance based on where institutional money is moving.

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The information provided here is ai generated and for general information and educational purposes only. It is not intended to be personalized investment advice, nor should it be considered as a solicitation to buy or sell any security or financial product.