Over a quarter of equity mutual fund assets in top 10 stocks list

Equity mutual funds’ (MFs’) exposure to the top 10 stock holdings stood at Rs 1.76 trillion at the end of December, up from Rs 1.04 trillion a year ago. These 10 stocks account for 26.9 per cent of total equity assets under management (AUM), slightly below 27.1 per cent in December 2016, data provided by Value Research shows. Because of robust inflows into equity schemes coupled with a sharp rally in stock prices, equity AUM (of pure-play schemes) have grown nearly 70 per cent to Rs 6.5 trillion.

The exposure to top 20 stocks by equity MFs is Rs 2.5 trillion, or 38.15 per cent of equity AUM, while that to top 30 stocks is Rs 3 trillion, or 45.33 per cent of equity AUM. While the percentage exposure to top 10 stocks had dipped slightly in the past one year, that to the top 20 and top 30 stocks have increased by 72 basis points and 38 basis points, respectively. In other words, substantial inflows into equity MFs find their way into these top 15-30 stocks. The list of top 10 stocks has largely remained unchanged over the past one-year period. Equity MF holdings are more concentrated than the overall market. The top 10 stocks by market cap account for 23 per cent of total market cap, while the top 20 and top 30 stocks account for 34 per cent and 42 per cent, respectively.