Archive · 16 Sep 2026
Mutual Funds Cut Consumer Exposure, Favor Five Other Sectors
Mutual funds are pools of money invested in many companies.
In August, fund managers reduced how much of this money was invested in consumer companies.
They increased investments in healthcare, capital goods, e-commerce, insurance and some financial businesses instead.
Healthcare became one of their largest favored sectors, reaching 8.4% of portfolios.
E-commerce reached its highest allocation ever at 3.3%.
This does not mean fund managers are leaving the stock market.
Instead, they are moving money toward sectors they believe may have stronger growth or clearer earnings.
Overall mutual fund investments rose in August because more money came in and fewer investors withdrew money.
Mutual fund exposure to consumer companies fell to a 10-year low in August.
Healthcare allocation rose for the fourth straight month to 8.4%, its highest level in 71 months.
Capital goods allocation increased to 7.9%, while e-commerce reached a record 3.3% weighting.
Insurance and NBFC–Non-Lending were also among the sectors receiving increased allocations.
Equity mutual fund net inflows rose to ₹31,700 crore in August from ₹26,200 crore in July.
- Who
- Mutual fund managers and equity mutual fund investors.
- What
- Fund managers reduced consumer-sector exposure to a 10-year low while increasing allocations to five highlighted sectors.
- When
- The portfolio changes and inflow figures refer to August, with comparisons to July and the previous year.
- Where
- Across mutual fund portfolios, with sector weights compared against the BSE 200 benchmark.
- Why
- The shift could reflect fund managers seeking sectors with structural growth potential and improving medium-term earnings visibility.
- Consumer exposure
- Declined to a 10-year low.
- Healthcare allocation
- 8.4% in August, up 30 basis points month-on-month and 80 basis points year-on-year.
- Capital goods allocation
- 7.9%, up 30 basis points month-on-month and 80 basis points year-on-year.
- E-commerce allocation
- 3.3%, an all-time high after rising for the fourth consecutive month.
- NBFC–Non-Lending
- Over-owned relative to the BSE 200 by 16 funds, the highest figure among the highlighted sectors.
- Equity mutual fund inflows
- ₹31,700 crore in August, compared with ₹26,200 crore in July.