According to data from Ace Equity, 17 companies in the NIFTY500 index have experienced consistent mutual fund stake reductions over the last four quarters. These companies include Zee Entertainment, Anant Raj, Life Insurance Corporation of India, Mahindra & Mahindra Financial Services, NTPC, UNO Minda, CIE Automative, and Star Health, among others. The trend reflects a broader shift in mutual fund investment patterns as large-cap funds faced net outflows of ₹1,321 crore in July 2026, while investors pivoted aggressively toward mid- and small-cap segments.
Mutual funds have significantly reduced their stake in Zee Entertainment from 10.47% they owned at the end of the first quarter of the previous financial year to 3.16% at the end of the June quarter. As reported by BSE, the media giant's stake has declined from 4.86% at the end of the fourth quarter of the previous financial year. Bandhan Large & Mid Cap Fund and HDFC Balanced Advantage Fund are the mutual fund schemes with exposure to Zee Entertainment shares. Last week, a tribunal approved a repayment plan under which Subhash Chandra, the promoter of Zee Entertainment, would pay ₹6.5 crore against admitted creditor claims of about ₹22,065.57 crore in his personal insolvency resolution process.
According to reports, Life Insurance Corporation of India has seen mutual funds reduce their stake to 0.84% at the end of the first quarter of current financial year from 1.13% stake they owned at the end of March quarter. The country's largest life insurance company reported a consolidated profit after tax of ₹13,492 crore for the April-June quarter of 2026-27, reflecting a 22.81% year-on-year jump from ₹10,986 crore in the corresponding period of the preceding fiscal year. Its net premium income surged 6.7% YoY to ₹1.28 lakh crore during the quarter, as against ₹1.20 lakh crore in Q1 FY26.
As reported by market data, large-cap funds saw net outflows of ₹1,321 crore in July 2026, while investors pivoted aggressively toward mid- and small-cap segments. Small-cap funds raked in ₹7,767.5 crore and mid-cap schemes attracted ₹6,192 crore during the month. Flexi-cap funds also saw healthy inflows of ₹4,709 crore during July. The consistent stake reductions across these 17 NIFTY500 companies indicate a strategic shift in mutual fund investment approach, with fund houses reducing exposure to established large-cap names while increasing allocation to growth-oriented segments.
