How MFs churned large caps, mid-caps, and small caps in July 2025

13 Aug 2025 , 03:37 PM

GROSS CHURN BY MUTUAL FUNDS IN JULY 2025

July 2025 saw domestic equity funds net inflows of ₹42,702 Crore; 81% above the June 2025 levels. From a mutual fund churn perspective, what matters is not the net flows but the gross churn, comprising of inflows and redemptions. For the month of July 2025, the net inflows into equity funds of ₹42,702 Crore comprised of gross purchases of ₹75,084 Crore and gross redemptions of ₹32,382 Crore. This total volume of ₹1,07,466 Crore impacts equity buying and selling by mutual funds. Hybrid and passive equity are ignored here, but they also have an impact on overall equity churn. This active equity fund churn is broken up into large cap, mid-cap, and small cap stocks for July 2025.

HOW MUTUAL FUNDS CHURNED LARGE CAP STOCKS IN JULY 2025

For large caps; we stick to the AMFI classification of Top-100 stocks ranked by market cap. These are reviewed by AMFI twice a year. Here is large cap churn in July 2025.

Let us start with the mutual fund large cap buys first! Overall, the mutual funds added 1,300 Lakh shares of State Bank of India (SBI), 270 Lakh shares of CG Power & Industrial Solutions, 177 Lakh shares of HCL Technologies, 133 Lakh shares of TCS, 80 Lakh shares of Chola Investments, 56 lakh shares of Lodha Developers, 48 Lakh shares of Info Edge (Naukri), 22 Lakh shares of Havells India, and 21 Lakh shares of Adani Green Energy. In addition, mutual funds also picked up small quantities of Mazagon Docks. The focus was on deep value frontline stocks; especially SBI, where sum of parts is yet to manifest itself.

We now turn to major large cap selling by mutual funds in July 2025. The selling was visible in stocks as part of larger portfolio restructuring. There was heavy selling of 423 Lakh shares in Indian Oil Corp (IOCL), 230 Lakh shares of Union Bank of India, 139 lakh shares of Hindalco Industries, 88 Lakh shares of Ambuja Cements, 41 lakh shares of Interglobe Aviation (Indigo Airlines), 33 Lakh shares of Zydus Lifesciences, 24 Lakh shares of IRFC, and 22 lakh shares of Hindustan Zinc Ltd (HZL). In addition, mutual funds sold smaller quantities in ABB India and Solar Industries. Large cap IT did see some buying interest, but the selling was more in stocks that had rallied in the recent past.

HOW MUTUAL FUNDS CHURNED MID-CAP STOCKS IN JULY 2025

After identifying the top-100 large cap stocks, the stocks ranked 101st to 250th by market cap qualify as mid-cap stocks. Here is the buying and selling in mid-caps in July 2025.

Let us focus on mid-cap buying in July 2025. Overall, mutual funds added 5,653 Lakh shares of Vodafone Idea, 2,203 Lakh shares of Ashok Leyland, 759 Lakh shares of Yes Bank, 629 Lakh shares of Canara Bank, 349 Lakh shares of L&T Finance, 342 Lakh shares of Swiggy Ltd, 78 Lakh shares of Oberoi Realty, and 58 lakh shares of 360 One WAM. Mutual funds bought smaller quantities of Patanjali Foods and Authum Investments in July 2025.

We turn to major mid-cap selling candidates in July 2025. Mutual Funds sold 227 Lakh shares of HPCL, 89 Lakh shares of IREDA, 87 Lakh shares of UPL Ltd, 65 Lakh shares of LIC Housing Finance, 45 Lakh shares of ACC Ltd, 33 lakh shares of Nippon Life India AMC, 16 lakh shares of HDFC AMC, and 9 Lakh shares of Narayana Hrudayalaya. In addition, July 2025 also saw smaller quantities of selling in Adani Total Gas and Hitachi Energy India. Interestingly, July 2025 saw some concerted buying in mid-cap BFSI stocks, while AMCs sold off.

HOW MUTUAL FUNDS CHURNED SMALL CAP STOCKS IN JULY 2025

The stocks ranked 251st and lower are classified as small caps by AMFI; although stocks below ₹10,000 Crore in market cap are classified as micro-caps. Here is the small cap action.

In July 2025, mutual funds added 553 Lakh shares of Ola Electric Mobility, 64 Lakh shares of Marathon Nextgen Realty, 42 Lakh shares of India Shelter Finance, 34 Lakh shares of Elgi Equipment, 22 Lakh shares of Emcure Pharma, 19 Lakh shares of Shakti Pumps, and 12 Lakh shares of Akzo Nobel India. In addition, mutual funds also purchased smaller quantities of Tinna Rubber, Globus Spirits, and AGI Greenpac Ltd in July 2025.

Let us conclude our churn analysis with the small-cap selling in the month of July 2025. Mutual funds sold 236 Lakh shares of Hindustan Copper, 230 Lakh shares of Zee Entertainment, 76 Lakh shares of Chambal Fertilizers, 19 Lakh shares of Apollo Micro Systems, 19 Lakh shares of Sterling & Wilson Renewables, 14 Lakh Shares of Capital SFB, and 12 Lakh shares of Ceigall India Ltd. In addition, July 2025 also saw mutual funds selling smaller quantities in Blue Jet Healthcare, Tatva Chintan Pharma, and PSP Projects.

Overall, mutual funds have been trying to tweak their portfolios to better reflect the implications of the macro risks in the market today.