Active equity funds rejig holdings in muted Samvat: new-age stocks and sector shifts
A BusinessLine study of 576 active equity schemes shows managers added new listings, trimmed winners and raised sectoral exposure even as net inflows stayed strong.
The reshuffling suggests active managers are repositioning toward newer businesses and specialised sectors, but holding-value changes need careful reading because price moves can inflate them.
- Active equity funds saw net inflows of ₹5.2 lakh crore during the Samvat year.
- Billionbrains Garage Ventures entered 129 schemes, the most among fresh additions.
- ONGC's combined shareholding fell 9.3 per cent even as schemes holding it rose from 55 to 85.
Equity fund managers reworked their portfolios during a muted Samvat year, according to a BusinessLine analysis of 576 actively managed equity schemes between Diwali 2025 and Diwali 2026. The study provides a useful lens on how professionals handled volatile markets and strong inflows, and it points to clear shifts toward newer businesses and specialised sectors. (Source: BusinessLine)
What happened
Actively managed equity funds received net inflows of ₹5.2 lakh crore even as combined assets rose from ₹31 lakh crore to ₹35.4 lakh crore. The study compared portfolio disclosures from October 2025 and September 2026 across equity categories. Recently listed businesses led fresh additions: Billionbrains Garage Ventures entered 129 schemes, Meesho 85, Lenskart Solutions 76, and Tenneco Clean Air India 69. In trimming, ONGC's combined shareholding fell 9.3 per cent by share count, while the number of schemes holding it rose from 55 to 85. Profit-booking was pronounced in Chennai Petroleum, Welspun Corp and Hitachi Energy India, while reductions in Wipro, HUDCO and P&G Hygiene came amid weak performance. Some schemes gained from concentrated positions: Quant Focused Fund returned 8 per cent with over 6 per cent in BHEL, and Samco Large & Mid Cap Fund gained over 7 per cent while holding over 8 per cent in Laurus Labs. Swiggy fell 56.1 per cent, yet scheme count rose from 80 to 134 and total shares held climbed from 23.6 crore to 65.4 crore. At sector level, aluminium holding value jumped nearly eightfold from ₹1,677 crore to ₹13,388 crore, with medical equipment, trading and fintech also rising sharply. (Source: BusinessLine)
Our analysis
Fresh additions suggest managers were willing to look beyond established listed companies when new businesses became available. But the number of schemes holding a stock shows how widely it is owned, not how heavily each scheme has invested. A name in 129 schemes could still be a small part of every portfolio, so new entries alone do not reveal conviction. (Source: BusinessLine)
The trimming data are more nuanced than a simple exit. Combined mutual fund shareholding by share count fell in every highlighted stock, yet scheme count often rose. That points to large existing holders booking profits or reducing position sizes while other schemes initiated smaller allocations. ONGC fits this pattern: its share count fell 9.3 per cent but the number of schemes holding it increased from 55 to 85. Profit-booking was also visible in stocks that had already re-rated, such as Hitachi Energy India and Sansera Engineering, where funds reduced holdings despite strong price performance. (Source: BusinessLine)
Sector-level shifts toward aluminium, medical equipment, trading and fintech look meaningful, but we must read them carefully. Holding values can rise simply because market prices rose, not because funds bought more. The study itself cautions that these figures should not be read as direct proof of sectoral buying or selling.
What this could mean for you
- Equity fund investors may see wider divergence in scheme returns because managers took different bets on new listings and sectors during the Samvat year.
- SIP investors kept seeing money deployed even in muted markets, but portfolio changes can take time to reflect in performance, so short-term returns may lag fresh allocations.
- Sectoral or thematic fund holders with exposure to aluminium, medical equipment or fintech may have benefited from rising holding values, though part of that could be price movement rather than fresh buying.
- Direct stock investors watching mutual fund filings should note that a stock appearing in many schemes does not mean funds own large positions, and trims can happen even when scheme count rises.
What to watch next
- Upcoming monthly portfolio disclosures will show whether broad new-age additions turn into larger position sizes or stay shallow.
- Whether the jump in aluminium and fintech holding values sustains after the initial re-rating or gives way to profit-booking as seen in some industrial stocks.
- If equity market volatility persists, active managers may keep rebalancing, which could widen the gap between strong and weak performing schemes.
Bottom line
The Samvat period shows active equity managers were not passive: they added new companies, trimmed some winners, and shifted sector exposure even as headline returns stayed subdued. For investors, scheme-level portfolio changes explain performance far better than aggregate flow numbers alone.
Source: BusinessLine — Muted markets, active managers: How equity MFs recast their portfolios in this Samvat. This story was written by the MF Analyser News Desk with AI assistance and its figures were checked automatically against the original report. It is for education only and is not investment advice. Mutual fund investments are subject to market risks.
