Mutual funds' Nifty 50 allocation falls to 21-year low
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Domestic mutual funds’ allocation to Nifty 50 stocks fell to a 21-year low in the September quarter.
- ✓The share dropped to 49.4 per cent as portfolios expanded beyond top benchmark companies.
- ✓NSE said, “The sustained decline across investor categories reflects the broadening of institutional portfolios beyond India’s largest listed companies.”
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Domestic mutual funds’ allocation to Nifty 50 stocks fell to a 21-year low in the September quarter, slipping below 50 per cent for the first time in over two decades, as fund portfolios continued to expand beyond the country’s largest benchmark companies.
The share of Nifty 50 stocks in mutual funds’ holdings of NSE-listed equities declined by two percentage points to 49.4 per cent from 51.4 per cent in June, according to the National Stock Exchange’s (NSE) India Ownership Tracker report. This was 13.5 percentage points below the December 2019 peak of 63 per cent.
The decline was part of a broader shift among institutional investors, whose combined allocation to Nifty 50 companies fell for the third consecutive quarter to a record low of 54.6 per cent. This represented a decline of 1.4 percentage points during the quarter and 6.3 percentage points since December 2025.
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