Archive · 24 Jul 2026
MF Investment: Funds Shift to Metals, Reduce Bank Exposure
In June, large and midcap mutual funds in India made big changes to their investments.
They put more money into metal companies like Vedanta Aluminium and Sterlite Technologies, while they sold shares in banks like HDFC Bank and Axis Bank.
This shows a shift towards industries that deal with metals and away from banking.
The funds bought a total of ₹9,823 crore worth of stocks, showing they are still active in the market but are choosing different types of companies to invest in.
The biggest gains were in metal stocks, while the biggest losses were in banking stocks.
Large and midcap mutual funds increased exposure to metal stocks and reduced allocations to banking shares in June.
Non-Ferrous Metals saw the highest net inflows of ₹1,532 crore, followed by Ferrous Metals with ₹803 crore.
Banks experienced the largest net outflows at ₹2,180 crore, making financials the biggest casualty of June's portfolio reshuffle.
Vedanta Aluminium Metal Ltd was the biggest beneficiary with ₹717 crore invested, followed by Sterlite Technologies with ₹329 crore.
HDFC Bank saw the largest reduction in exposure with mutual funds trimming holdings worth ₹1,200 crore.
- Who
- Large and midcap mutual fund managers
- What
- Sector rotation from banking to metal stocks
- When
- June
- Where
- India
- Why
- Preference for commodity-linked sectors and concerns over banking sector performance
Pro-Metal Investment
Anti-Bank Investment
Sector Preference
Pro-Metal Investment
Fund managers increased investments in metal stocks, particularly Vedanta Aluminium and Sterlite Technologies, due to strong performance and growth potential in the metal sector.
Anti-Bank Investment
Fund managers significantly reduced their exposure to banking stocks, particularly HDFC Bank and Axis Bank, due to concerns over sector performance and potential risks.
- Total Net Buying
- ₹9,823 crore
- Top Metal Inflows
- Non-Ferrous Metals: ₹1,532 crore, Ferrous Metals: ₹803 crore
- Top Bank Outflows
- Banks: ₹2,180 crore
- Top Stock Picks
- Vedanta Aluminium: ₹717 crore, Sterlite Technologies: ₹329 crore
- Top Fresh Buys
- Hindalco Industries: ₹664 crore, Jindal Steel: ₹550 crore
- Top Reductions
- HDFC Bank: ₹1,200 crore, Axis Bank: ₹516 crore