One of the parameters closely tracked by investors is the stocks that mutual funds buy and sell in any month. They may not be an illustrative recommendation, but a macro view helps understand which stocks and sectors that investors are gravitating towards. Instead of looking at individual funds and AMCs, we look at the macro view from the perspective of large cap stocks, mid-cap stocks, small cap stocks. Of course, while defining large caps, mid-caps, and small caps; we stick to the AMFI definition of ranking based classification. The top-100 by market cap are large caps, the next 150 are mid-caps, and the rest are small caps. When it comes to mutual funds, it is not just the net churn, but the gross buying and selling of stocks that actually impacts the equity markets. Here is a quick dekko. 

Let us start with the large cap stocks where mutual funds added significant positions in the month of August 2025. The mutual funds added 2,290 Lakh shares of Eternal (Zomato), 363 Lakh Shares of Adani Energy Solutions, 232 Lakh shares of Union Bank of India, 224 Lakh shares of Indus Towers, 142 Lakh shares of Varun Beverages, 114 Lakh shares of Shriram Finance, and 105 lakh shares of Info Edge (Naukri). In addition, mutual funds also picked up small quantities of JSW Steel, Havells India, and Lodha Developers. On the buy side, the focus appeared to be more on futuristic themes like digital and new energy. 

What about mutual fund selling in August 2025? The selling was a mix of portfolio revamp and booking out of lucrative stories like PSUs. There was heavy selling of 821 Lakh shares in NTPC Ltd, 519 Lakh shares of ONGC, 155 lakh shares of Tata  Power, 130 Lakh shares of Sun Pharma, 121 lakh shares of REC Ltd, and 61 Lakh shares of Avenue Supermarts (D-Mart). In addition, mutual funds sold smaller quantities in Siemens Energy, Adani Enterprises, Adani Energy, and Siemens Ltd. The selling was predominantly in the PSU large cap utilities, which is understandable after the frenetic rally in last couple of years. 

Let us turn to mid-cap buying in August 2025. Overall, mutual funds added 282 Lakh shares of SAIL, 163 Lakh shares of One97 Communications (Paytm), 135 Lakh shares of Dabur India, 101 Lakh shares of Tata Communications, 49 Lakh shares of UPL Ltd, and 25 Lakh shares of Bharat Dynamics Ltd (BDL). Mutual funds also bought smaller quantities of Astral Ltd, Godrej Properties, Thermax Ltd, and IDBI Bank in August 2025. 

How about major mid-cap selling candidates in August 2025? Mutual Funds sold 7,569 Lakh shares of Vodafone Idea, 85 Lakh shares of Exide Industries, 58 Lakh shares of Central Bank of India, 38 Lakh shares of HUDCO, 18 Lakh shares of HDFC AMC, and 17 lakh shares of IRCTC Ltd. In addition, August 2025 also saw smaller quantities of selling in Waaree Energies, Hitachi Energy, Tata Elxsi, and Adani Total Gas. The selling was quite strong in the full gamut of energy companies. 

Let us finally look at small caps in August 2025. For the month, mutual funds added 270 Lakh shares of Sammaan Capital, 154 Lakh shares of India Cements, 91 Lakh shares of Clean Science and Tech, 72 Lakh shares of Thirumalai Chemicals, and 60 Lakh shares of Syrma SGS Technology Ltd. The month also saw fresh buying in Suven Life sciences. In addition, MFs purchased smaller quantities of EPACK Durable, Edelweiss Financial, and Kilburn Engineering.  

What about MF selling in small caps in August 2025? Mutual funds sold 464 Lakh shares of Aditya Birla Fashions & Retail (ABFRL), 120 Lakh shares of Granules India, 102 Lakh shares of Belrise Industries, and 57 Lakh shares of Delta Corp. In addition, August 2025 also saw mutual funds selling smaller quantities in Sarda Energy, Protean e-Gov Technologies, Jupiter Wagons, Advanced Enzymes, Seamec Ltd, and Jana Small Finance Bank. 

While large cap action in August 2025 showed some sectoral trends, the action in mid-caps and small caps was largely bottom-up and very stock-specific in nature.