How MFs churned large caps, mid-caps, and small caps in June 2026

How MFs churned large caps, mid-caps, and small caps in June 2026

Here is a quick look at how mutual funds churned their portfolios in June 2026 at a macro level. The view 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 JUNE 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 June 2026.

Let us look at the large cap buy side first. Energy and minerals seem to be the big buy theme for the month of June. If you look at the 10 most bought stocks in the month, 4 of them directly or indirectly belong to one of these categories. To be fair, even BFSI stocks were preferred, although the underlying theme was a mix of infrastructure financing and financial inclusion. There were no other sectoral themes decipherable in the MF buy list for June 2026.

What about the MF selling in large caps? Half of the top-10 major sell candidates in the large cap space were financials, with the sharp volatility in markets leading to large cap selling in market linked stocks like ICICI Pru AMC, HDFC AMC, LIC of India, and BSE Ltd. The others were relatively spread out, although selling overall was muted in the month in large caps. This can be attributed to optimism amid hopes that peace would finally return to the Middle East.

MUTUAL FUNDS - MID CAP CHURN IN JUNE 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 June 2026.

Mutual funds are clearly preferring the infrastructure and digital stories in the mid-cap space. In the infrastructure space, there was a strong buying interest in JSW Infrastructure, NHPC, RVNL, Adani Total Gas, and Cochin Shipyards. Among the digital plays, the mid-cap buying was quite aggressive in adding positions to Meesho and Lenskart. Bank of India was the only financial inclusion story that witnessed mutual fund buying in the mid-cap space.

What about the MF selling in mid-caps? It was rather mixed. There were commodity and energy plays like NMDC, Oil India, and Waaree Energies. The last one is not surprising considering the RE thrust in coming years. Some of the customer facing stocks like Lodha Developers, Patanjali Foods, and P&G Hygiene also saw some concerted selling in June 2026.

MUTUAL FUNDS - SMALL CAP CHURN IN JUNE 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 June 2026.

The small cap space, by default, happens to be a bottom-up stock specific story. There were some interesting buy candidates in the small cap space like Acme Solar, Paras Defence, Pondy Oxides, and the recently listed NSDL Ltd. On the sell side; Zee saw heavy selling despite getting exclusive rights for FIFA in India. BCCL saw heavy selling as its lock-in period opened. Also, Vedanta Oil & Gas, demerged from the parent, saw some MF downsizing in June 2026.

What is the overall picture that emerges from the fund buying and selling across capitalization? Rate sensitives, infrastructure, defence, and digital appear to be the preferred themes for mutual funds in India. This is the story across large caps and mid-caps, although the story is a lot more dispersed and bottom-up in the case of small caps.