BSE stock rally: These mutual funds have the highest allocation to the exchange

BSE Ltd is in focus ahead of the proposed listing of NSE, with the exchange operator’s stock gaining 23% so far this year and nearly 50% over the past year, as of September 22.

This has also brought the mutual fund exposure to BSE into focus.

Among diversified funds, ICICI Prudential Midcap Fund has the highest allocation to BSE at 3.95% of its assets under management (AUM), according to data sourced from Moneycontrol and Value Research. It is followed by Invesco India Midcap Fund at 3.86% and Samco Mid Cap Fund at 3.19%.

Other diversified funds with relatively high exposure include 360 ONE Focused Fund at 2.74% and ICICI Prudential Multicap Fund at 2.59%.

In the sectoral fund category, Edelweiss Financial Services Fund has the highest BSE exposure at 5.32% of AUM, followed by Invesco India Financial Services Fund at 3.85%. Axis Services Opportunities Fund, LIC MF Banking & Financial Services Fund and Invesco India Business Cycle Fund have exposures of 3.50%, 3.26% and 3.24%, respectively.

Passive funds have higher BSE exposure

BSE’s exposure is considerably higher in some passive funds tracking the capital markets theme. Tata Nifty Capital Markets Index Fund has 16.87% of its AUM invested in BSE, while Motilal Oswal Nifty Capital Market Index Fund has 16.84%.

Axis Nifty Capital Markets Index Fund has an exposure of 16.81%, while Groww Nifty Capital Markets ETF and Motilal Oswal Nifty Capital Market ETF each have around 16.8% exposure to BSE.

The higher exposure in these funds reflects their mandate to track indices focused on India’s capital markets rather than a broad-based equity portfolio.Fund-house overlap with NSE anchor investors

There is also an overlap at the fund-house level between mutual fund houses with exposure to BSE and those whose schemes feature among the anchor investors for the proposed NSE listing.

The list of NSE anchor investors includes funds from Nippon India, Invesco, SBI, HDFC, Franklin Templeton, Mirae Asset, Edelweiss, ICICI Prudential and Axis.

Several of these fund houses also have schemes with exposure to BSE. However, the specific schemes and the nature and extent of their exposure to the two exchanges vary.

The data is based on fund portfolios as of September 22 and is intended to show the exposure of mutual fund schemes to BSE, rather than serve as an investment recommendation.