An analysis of mutual fund (MF) shareholding trends in the BSE 500 stocks over the last four quarters reveals a notable shift. During the June 2025 quarter, mutual funds trimmed their holdings in 65 stocks, marking a reversal after two consecutive quarters of accumulation — from September 2024 to December 2024, and again from December 2024 to March 2025.
Despite the reduction in mutual fund holdings, a majority of these stocks have continued to perform well in the market. 31 of the 65 stocks where mutual funds reduced their stakes have delivered double-digit share price gains, with some rising as much as 70% in FY26 so far. However, it’s equally important to note that not all stocks have shared this upside. Nine stocks from the group have declined by as much as 20% during FY26, underlining the growing divergence in performance within the broader market.
Mutual funds are considered by informed investors, often basing their decisions on in-depth research and long-term fundamentals. Mutual fund buying boosts investor confidence, but if they reduce their stakes after buying steadily, it’s worth paying attention. Investors should not just rely on past returns but also watch what big investors are doing and understand each stock’s basics.
