Summary of this article
Divi’s Labs, TVS Motor, Coforge, Persistent Systems and Federal Bank were the top MF-owned stocks outside the Nifty 50.
Mutual funds have hit record high investments in the listed companies in India, amid rising inflows by investors. According to the latest data released by National Stock Exchange (NSE) for the quarter ending September 2025, mutual funds held 10.90 per cent across all companies listed on the NSE.
In the second quarter of FY26 alone, direct mutual funds have invested Rs 1.64 lakh crore, their 18th straight quarter of positive inflows, shows NSE data.
The market ownership by mutual funds, according to the data, is now the highest ever. In Nifty 500, mutual funds hold 11.40 per cent share and in Nifty 50, a significant 13.50 per cent share.
While mutual funds may love the Nifty 50. If we search the stocks where mutual funds have invested the most, the top names undoubtedly, are going to be the largest ones, but some of their best bets may be lying outside those.
Here are the top five most-loved stocks beyond the Nifty 50 where mutual funds have invested the most.
Divi’s Laboratories
Divi's Laboratories, a large-cap pharmaceutical and active pharmaceutical ingredients (API) manufacturer, is the 51st largest company of the country, holding a market cap of Rs 1.80 lakh crore. Mutual funds hold a total of 37.30 million shares of the company with a total market value of Rs 25,145 crore.
Mutual funds that have invested more than 1 per cent of their net assets in Divis Laboratories are SBI Mutual Fund (4.75 per cent), Axis Mutual Fund (1.42 per cent), Nippon India Mutual Fund (1.39 per cent) and HDFC Mutual Fund (1.05 per cent). The data is as of the quarter ended September 2025.
TVS Motor Company
Popularly known for its two wheelers–scooters, bikes and mobility solutions, TVS Motor Company is a large-cap company with market cap of Rs 1.66 lakh crore. Mutual funds held a total of 67.70 million shares with a total market value of Rs 23,755 crore as of October end 2025.
Three mutual fund houses with over 1 per cent of their net assets invested in the two-wheeler manufacturer are – ICICI Prudential Mutual Fund that held a significant 5.90 per cent shares as of quarter ending September 2025, followed by Axis Mutual Fund (1,47 per cent) and Canara Robeco Mutual Fund (1.05 per cent).
Coforge
A digital IT service and technological solutions provider, Coforge is a mid-cap company, with a market capitalisation of Rs 59,582 crore as of October-end 2025. Mutual funds held a total of 128.40 million shares of the company with a total market value of Rs 23,000 crore.
Coming to mutual funds that have high stakes in the company, Motilal Oswal Mutual Fund has invested almost 10 per cent of its net assets in the company, followed by HDFC Mutual Fund (5.75 per cent), DSP Mutual Fund (4.09 per cent), UTI Mutual Fund (2.76 per cent). Mutual fund companies, namely-- Aditya Birla Sun Life, Axis Mutual Fund, Invesco Mutual Fund, HSBC Mutual Fund, Edelweiss Mutual Fund and Nippon India Mutual Fund, also invested between 1 per cent and 2 per cent of their net assets in the company.
Persistent Systems
Persistent Systems, another IT player in the list, is a mid-cap company with a total market cap of Rs 93,298 crore where mutual funds have invested beyond the top 50 companies. Mutual funds hold 37.60 million shares of the software engineering and IT services provider amounting to a total market cap of Rs 22,245 crore.
Motilal Mutual Fund has invested 6.20 per cent of its net assets in the company. HDFC Mutual Fund and Kotak Mutual fund followed with 2.54 per cent and 2.40 per cent, respectively. Other asset management companies (AMCs) that have invested 1 per cent or higher of their net assets in the stock are -- Nippon India Mutual Fund (1.90 per cent), UTI Mutual Fund (1.74 per cent) and Axis Mutual Fund (1.11 per cent), as of the quarter ending September 2025.
The Federal Bank
Next is a private sector bank, headquartered in Kerala– The Federal Bank. It is a mid-cap stock with a market cap of Rs 58,229 crore. Mutual funds together hold 912.20 million shares of the stock with a market cap totaling Rs 21,585 crore.
Mutual funds that have invested a significant share of their net assets in the company are-- HDFC Mutual Fund (6.97 per cent), Axis Mutual Fund (3.13 per cent), Nippon India Mutual Fund (3.06 per cent), SBI Mutual Fund (2.75 per cent), Invesco Mutual Fund (2.45 per cent), and Aditya Birla Sun Life Mutual Fund (2.13 per cent).
Other mutual fund houses with a considerable 1 per cent of their assets invested are-- Kotak Mahindra Mutual fund, Canara Robeco Mutual Fund, Mirae Asset Mutual Fund, HSBC Mutual Fund, ICICI Pru Mutual Fund, DSP Mutual Fund, UTI Mutual Fund, Tata Mutual Fund, and Franklin Templeton Mutual Fund.
Mutual funds update their portfolios every month, and it’s always interesting to see which companies they are quietly building big positions in. Apart from these five stocks, the next five most-favourite stocks of mutual funds are Dixon Technologies, Max Financial Services, Fortis Healthcare, Cholamandalam Investment and Finance Company and Avenue Supermart.
