Indian mutual funds continued their buying streak in June 2025, deploying a net ₹154 billion into equity markets (both primary and secondary), as per data from Nuvama Alternative & Quantitative Research. The allocation was accompanied by foreign institutional investors (FIIs) who pumped in ₹167 billion, marking strong capital flows into Indian equities.
Mutual fund holdings in cash and equivalents dropped to ₹1,807 billion or 5.34% of assets under management (AUM), down from ₹1,961 billion (6.05%) in May — reflecting increased conviction in equity markets despite global volatility.
Large-Cap Moves: Asian Paints, Infosys Among Favourites
Within pure equity mutual fund schemes, the large-cap space saw selective churn. Top largecap stocks that mutual funds bought in June included Asian Paints, Trent, Bajaj Finserv, Infosys, and Bharti Airtel, indicating a tilt towards quality consumption and financial names.
On the flip side, fund managers trimmed positions in heavyweights such as Tata Consultancy Services (TCS), DLF, Jindal Steel & Power, Kotak Mahindra Bank, and Coal India.
Mid-Cap Action: Strong Interest in Manufacturing and Healthcare
Mid-cap activity was more dynamic. The mid-cap stocks that mutual funds bought the most were Dixon Technologies, Biocon, Aditya Birla Capital, Container Corporation, and Star Health Insurance.
Top midcap stocks sold included Indian Hotels Company, Mazagon Dock Shipbuilders, Solar Industries, Coforge, and Max Healthcare Institute, Nuvama report showed. Notably, New India Assurance shares made its way into portfolios as a fresh entry.
Small-Cap Stock Picks: Capri Global, Zydus Wellness See Strong Buying
In the small-cap space, fund managers were aggressive buyers in smallcap stocks such as Kaynes Technology India, Zydus Wellness, Capri Global Capital, Aptus Value Housing, and Jubilant Ingrevia. The segment also saw new entries in Capri Global and Suven Life Sciences shares.
However, prominent names like BSE, CDSL, Hitachi Energy India, Computer Age Management Services (CAMS), and Motilal Oswal Financial Services were the top smallcap stocks that mutual funds sold the most in June, according to Nuvama report. PSP Projects and Uniparts India were completely exited during the month.
Three-Month Trends: Consistent Bets in Large, Mid & Small Caps
Over the past three months, mutual funds steadily added large-cap stocks such as Reliance Industries, HDFC Bank, TCS, Titan Company, and ONGC shares, while trimming stakes in Bharat Electronics (BEL), BPCL, TVS Motor Company, Godrej Consumer Products, and Max Healthcare Institute, the Nuvama report showed.
Among mid-cap stocks, top recurring additions were Kaynes Technology India, Dalmia Bharat, KPIT Technologies, Multi Commodity Exchange of India (MCX), and NBCC India. Funds pared positions in Gujarat Fluorochemicals, CRISIL, Narayana Hrudayalaya, ACC, and Cholamandalam Finance.
Key additions among the small-cap stocks included Alkyl Amines Chemicals, Alok Industries, KPI Green Energy, Kirloskar Ferrous, and Gabriel India, while reductions were noted in Vijaya Diagnostic, India Shelter Finance, Happy Forgings, Sansera Engineering, and Galaxy Surfactants.
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