How MFs churned large caps, mid-caps, and small caps in August 2026
How MFs churned large caps, mid-caps, and small caps in August 2026 Here is a quick look at how mutual funds churned their portfolios in August 2026 at a macro level. It is a macro view of all the mutual funds combined, and then a…
How MFs churned large caps, mid-caps, and small caps in August 2026
Here is a quick look at how mutual funds churned their portfolios in August 2026 at a macro level. It is a macro view of all the mutual funds combined, and then a granular 360-degree view how the holdings shifted within large cap, mid-cap, and small cap stocks.
MUTUAL FUNDS - LARGE CAP CHURN IN AUGUST 2026
The table below captures the 5 large cap stocks seeing the biggest percent increase in MF holdings and the 5 large cap stocks seeing the biggest percent fall in holdings in August 2026.
| BIGGEST LARGE CAP BUYING (LHS) AND SELLING (RHS) BY MUTUAL FUNDS – AUGUST 2026 | |||||
|---|---|---|---|---|---|
| Most Bought Large Caps | Most Sold Large Caps | ||||
| Vedanta Ltd | 304 | 16.68% | GAIL India | -616 | -11.57% |
| Hindustan Zinc | 99 | 16.56% | Pidilite Industries | -44 | -9.91% |
| ICICI Pru AMC | 37 | 15.48% | Grasim Industries | -38 | -9.16% |
| Billion Garage (Groww) | 748 | 13.82% | Power Finance Corp | -194 | -6.67% |
| Avenue Supermarts | 58 | 13.52% | LTI Mindtree | -10 | -7.30% |
| Data Source: Fund Fact Sheets (Shares in lakhs) |
Let us look at the large cap buy side first. Anil Agarwal group companies have seen buying interest on attractive dividend yields and as minerals / metals proxies. Mutual funds also showed a preference for financial intermediation stocks channeling savings. D-Mart was a surprise inclusion, especially considering the decision to downsize its quick commerce business. Varun Beverages and Godrej Consumer were among the preferred FMCG plays.
What about the MF selling in large caps? The PSU stocks saw some aggressive selling; especially stocks like GAIL, PFC, and ONGC. The last one is surprising considering the slew of upgrades and the gains for the stock from crude at above $100/bbl. Infrastructure finance names are having challenges due to Yen appreciation; and its impact on Yen-denominated loans. Overall, the selling was subdued for the month, amid lower levels in the market.
MUTUAL FUNDS - MID CAP CHURN IN AUGUST 2026
The table below captures the 5 mid-cap stocks seeing the biggest percent increase in MF holdings and the 5 mid-cap stocks seeing the biggest percent fall in holdings in August 2026.
| BIGGEST MID-CAP BUYING (LHS) AND SELLING (RHS) BY MUTUAL FUNDS – AUGUST 2026 | |||||
|---|---|---|---|---|---|
| Most Bought Mid-Caps | Most Sold Mid-Caps | ||||
| Hindustan Copper | 93 | 105.68% | HUDCO Ltd | -56 | -15.73% |
| IDBI Bank | 59 | 31.22% | RVNL Ltd | -19 | -14.73% |
| Patanjali Foods | 56 | 28.72% | ICICI Pru Life Insurance | -190 | -12.59% |
| Aster DM Quality Care | 375 | 26.75% | Laurus Labs | -64 | -12.26% |
| Cochin Shipyards | 29 | 24.79% | REC Ltd | -229 | -10.83% |
| Data Source: Fund Fact Sheets (Shares in lakhs) |
With Copper seeing sharp global shortages and rising prices, Hindustan Copper has been an obvious mid-cap choice. IDBI Bank sustained buying interest ahead of its stake sale. Among other big stocks to attract MF buying interest, Cochin Shipyards is an obvious beneficiary of the large defence orders that the government plans to roll out. In the digital space, mutual funds showed a preference for Meesho in retail and Paytm in payment systems.
What about the MF selling in mid-caps? The MF selling in mid-caps was also focused on the PSU names. REC, a subsidiary of Power Finance, is also facing the overhang of yen loan exposure. Laurus Labs was more of a profit booking idea after rallying over 100% in the last one year. The sell-off in ICICI Pru Life was more due to the foreign partner trimming its stake. The mid-cap selling candidates were bottom-up plays, but the focus was on PSU selling.
MUTUAL FUNDS - SMALL CAP CHURN IN AUGUST 2026
The table below captures the 5 small cap stocks seeing the biggest percent increase in MF holdings and the 5 small cap stocks seeing the biggest fall in precent holdings in August 2026.
| BIGGEST SMALL CAP BUYING (LHS) AND SELLING (RHS) BY MUTUAL FUNDS – AUGUST 2026 | |||||
|---|---|---|---|---|---|
| Most Bought Small Caps | Most Sold Small Caps | ||||
| Foseco India | 9 | 900.00% | Bazaar Style Retail | -24 | -70.59% |
| Standard Engineering | 25 | 833.33% | Amrutanjan Health | -7 | -43.75% |
| Gujarat Themis Biosyn | 83 | 638.46% | Shreeji Shipping | -7 | -46.67% |
| Anupam Rasayan | 3 | 150.00% | Himadri Specialty | -31 | -46.27% |
| Tenneco Clean Air | 380 | 132.87% | GMDC Ltd | -7 | -50.00% |
| Data Source: Fund Fact Sheets (Shares in lakhs) |
The small cap space, by default, happens to be a bottom-up stock specific story. This month has been no different. Many of the percentage changes also look to be overstated due to a low base. Tenneco Clean Air, a recently listed stock, saw some aggressive buying in the month. Surprisingly, Himadri Chemicals (a long-time favorite of mutual funds) also came in for selling during the month of August 2026.
Broadly, the month of August 2026 saw some pressure on PSU stocks across the board. One reason was the yen loan exposure of several PSU companies. Mutual funds are still showing a bias for the buy side. It remains to be seen if it sustains in the month of September too?
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