HDFC Bank and ICICI Bank attracted the maximum investment of ₹1.86 lakh crore and ₹1.59 lakh crore while Reliance Industries and Axis Bank followed with an investment of ₹96,235 crore and ₹80,486 crore.
Mutual funds are betting big on the top 10 companies in terms of market capitalisation and hold about 30 per cent of their actively managed equity schemes investments in these stocks.
Of the overall equity asset under management of ₹26.31 lakh crore, mutual funds investment in top-10 companies accounted for 30 per cent at ₹7.90 lakh crore as of April-end, as per DSP Mutual Fund data which excludes arbitrage, mid-cap and small-cap categories.
HDFC Bank and ICICI Bank attracted the maximum investment of ₹1.86 lakh crore and ₹1.59 lakh crore while Reliance Industries and Axis Bank followed with an investment of ₹96,235 crore and ₹80,486 crore.
Given the bearish sentiment surrounding the FMCG sector, Hindustan Unilever attracted the least investment of ₹18,319 crore in April.
Interestingly, Dynamic asset allocation fund had the highest investment of 37 per cent of AUM in top-10 stocks while Balanced hybrid, Equity savings and Conservative hybrid funds held 35 per cent of investments in these leading companies.
Large- and mid-cap and multi-cap funds have least exposure of 20 per cent each to top-10 companies.
While market regulator SEBI allows large-cap equity funds to invest up to 80 per cent in large-cap stocks, it was limited to 45 per cent at ₹1.60 lakh crore of the overall AUM of ₹3.58 lakh crore.
As per the SEBI mandate, large-cap stocks are classified as the top 100 companies based on market capitalisation. Larger companies tend to perform better in volatile markets as they are often market leaders and more resilient during downturns.
Dharan Shah, Founder, Tradonomy.AI- a research driven AI powered investment platform, said actively managed funds need liquidity and volume to enter and exit positions with least impact cost, this is only possible with large-cap companies which are actively traded on derivatives for position management.
In the current market environment, large-cap stocks are considered fairly valued, making them an attractive option for those seeking growth with relatively lower risk compared to mid- and small-cap counterparts. Their resilience and capacity to weather economic uncertainties appeal to both new and seasoned investors.
Aakanksha Shukla, Assistant Vice President, Wealth Management, Master Capital Services said the concentrated in the top-10 companies reflects a strategic tilt toward blue chip stocks, especially during uncertain or volatile times.
Large, well-established companies offer stability, strong balance sheets and predictable cash flows, which fund managers prefer when managing downside risk, she said.
When Foreign Portfolio Investors (FPI) turn bullish on India, they typically start with blue chip stocks as they are highly liquid, well-tracked and offer easier entry and exit points for large volumes of capital, she added.
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Published on June 21, 2025