Reliance Industries fell 25% this year: Which mutual funds have the highest exposure — and should you be worried?

Mutual fund returns are influenced by the performance of the stocks held by the schemes. Reliance Industries Limited (RIL), India’s largest company by market capitalisation, is the latest stock in focus after its share price fell nearly 25% so far this year.

According to the NSE website, Reliance’s share price is down 24.98% in 2026 as of 29 September. The sharp fall in RIL can have a meaningful impact on mutual fund schemes that have a high exposure to the stock.

So, which mutual funds have the highest exposure to RIL, and what should investors make of the decline? Here’s what an expert has to say.

The five active mutual fund schemes with the highest exposure to Reliance include SBI Infrastructure Fund, ABSL Conglomerate Fund, and ICICI Prudential Energy Opportunities Fund. Their exposure ranges from 9.12% to 11.55% of net assets.

Four of these schemes are sectoral or thematic equity funds, while Quant Multi Asset Allocation Fund is a hybrid fund.

Harsh Vardhan Dawar, ACA, CFA, FRM, Founder – Wealth Cafe, said, “As per SEBI regulations, a single mutual fund scheme cannot invest more than 10% of its net asset value (NAV) in equity shares of any single company.”

But these rules do not apply to sectoral/ thematic fund or index funds/ETFs tracking the index.

The five diversified equity schemes with the highest exposure to Reliance have allocations ranging from 6.29% to 6.49% of their net assets. All have delivered negative returns so far in 2026.

Dawar said markets are cyclical in nature and investors should understand the reason for the fall. Two big factors affecting RIL’s performance this year are fluctuating oil prices because of the Iran war and lack of FII interest in the Indian markets. When these external factors turn favourable, it would be reflected in RIL’s price.

If the fall in the stock price is due to company-specific issues that will permanently affect the future returns of the stock, such as the current fall in the price of PB Fintech on account of changes in IRDA regulations, then such stocks warrant a complete re-evaluation, he added.

“When schemes give negative returns, you need to know the reasons the underperformance can be attributed to and then take a decision. For example, you may continue holding the scheme for temporary macro factors like the current Iran war,” he added.

Some index funds and ETFs have significantly higher exposure to Reliance Industries. The Motilal Oswal Nifty Oil & Gas ETF and ICICI Prudential Nifty Oil & Gas ETF have more than 32% of their net assets in RIL.

“RIL’s weightage in the Nifty Oil & Gas Index will force the fund manager to have a large exposure for anyone investing in this sector. And given RIL has fallen, the sectoral funds/ETFs will fall much more than a diversified equity fund,” Dawar mentioned.

What should investors do?

Dawar said if a single stock accounts for more than 10% of an investor’s total stock portfolio, it can have a meaningful impact on overall portfolio returns. If the exposure rises above 15%, investors should consider rebalancing their portfolio.

He added that investors who hold 4 to 5 mutual fund schemes should look at them as one combined portfolio. This can help them identify whether the same stock features heavily across multiple schemes, resulting in a higher overall exposure to that stock.