Summary of this article
Tata Motors and LG Electronics were the most-bought new entrants in October.
Mutual funds also sharply increased their stakes in existing favourites.
Reliance, HDFC Bank, L&T, Airtel and Axis Bank led the rise in MF portfolio value.
Equity mutual funds stepped up their buying in October 2025, adding fresh names while raising their stakes in several existing companies. At Outlook Money we did an analysis to figure out where equity mutual funds increased their exposure during the month. Equity mutual funds included categories, such as large-, mid-, small-, large-and-mid, flexi-, and multi-cap funds. Also, we considered only those companies where the market value of mutual fund holdings rose by Rs 1,000 crore or more.
The top five new entries, that is, the stocks where mutual funds had no exposure in September but bought significant quantities in October were – Tata Motors, Canara HSBC Life Insurance, Tata Capital, LG Electronics and Lenskart Solutions, along with Wework India Management, according to data from Ace Mutual Funds.
Tata Motors emerged as the standout addition, with nearly every mutual fund scheme (267 equity schemes) investing in the demerged entity of the auto major. LG Electronics, a popular consumer electronics company turned out to be the second-most popular new pick after the company made a blockbuster debut on D-Street in October. The company listed with a massive 50 per cent premium at Rs 1,710 over the issue price of Rs 1,140 per share. The share closed at a price of Rs 1,590 on November 14. The company attracted interest from 202 schemes during the month.
Apart from fresh entrants, several companies saw a notable rise in mutual fund shareholding compared with September—Adani Power, ITC, IDFC First Bank, Punjab National Bank and Aditya Birla Capital.
Adani Power, which recently announced a Rs 63,000 crore investment in two large power projects in Assam, saw one of the biggest jumps. Mutual funds added 139.30 million shares over the previous month. FMCG giant ITC also saw a substantial increase, with an addition of 7.69 crore shares.
On the basis of change in market value, the companies that saw the highest rise in mutual fund ownership were Reliance Industries, the country’s largest company with a market cap of over Rs 20 lakh crore; followed by the largest private bank of the country– HDFC Bank, Larsen & Toubro, Bharti Airtel and Axis Bank.
Reliance Industries alone gained over 10 per cent in the last one month.
Interestingly, Reliance, L&T, Bharti Airtel and Axis Bank all saw a reduction in the number of shares held by mutual funds. But their market value in mutual fund portfolios still rose because the share prices moved higher over the period. Bharti Airtel and Axis Bank gained nearly 7 per cent, while L&T rose around 5 per cent over the same period.
