Mutual Funds Increase Large-Cap Holdings While FPIs Reduce Exposure
· Business · LiveMint, Economic Times
Small-caps delivered the highest gains of 29.1% in the June quarter of FY27, yet mutual funds concentrated their buying in large- and mid-cap companies. A Mint analysis of ACE Equity data covering 4,367 BSE-listed companies showed that fund houses increased holdings in nearly two-thirds of large- and mid-cap firms. Conversely, foreign portfolio investors reduced their holdings across a majority of companies in both segments. Retail investors also trimmed their exposure across much of the broader mid- and small-cap universe during the quarter. Sustained domestic equity inflows, driven largely by systematic investment plans, supported mutual fund buying against sustained foreign selling.
Why it matters
Strong domestic inflows are cushioning the Indian stock market against foreign portfolio outflows, steering capital toward blue-chip large-caps while retail investors pull back from smaller stocks.
Read the original report — LiveMint
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