Mid-Cap Mutual Funds Lead June Equity Inflows; Here’s What Top Funds Bought and Sold

Mid-cap mutual funds received the highest inflows among all equity fund categories in June, attracting ₹6,090 crore, according to data released by the Association of Mutual Funds in India (AMFI). The inflows were 38.9% higher than ₹4,385 crore recorded in May and accounted for nearly 21% of the ₹28,973 crore invested in equity mutual funds during the month.

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Portfolio disclosures in the five biggest mid-cap fund recipients suggest that there are different strategies in investing, some of which kept their portfolios steady while others included new stocks in their portfolios.

HDFC Mid Cap Fund Retains Existing Portfolio

HDFC Mid Cap Fund recorded the highest inflows in June, receiving ₹1,162 crore. The scheme manages assets worth ₹1,00,858 crore and generated returns of 4.11% over one year and an annualised 19.89% over the past five years.

Managed by Chirag Setalvad, the fund made no additions or exits during the month. Around 63.21% of its portfolio remained invested in mid-cap companies, while the top 10 holdings accounted for 38.26% of assets. The fund’s turnover ratio stood at 4.42%, reflecting limited portfolio activity.

Nippon India and Kotak Add Select Stocks

Nippon India Growth Mid Cap Fund attracted ₹941 crore in fresh inflows during June. The scheme added Shree Cement and Bajaj Housing Finance while exiting ICICI Prudential AMC and Bayer CropScience. Mid-cap stocks represented 63.81% of the portfolio, with the top 10 holdings accounting for 23.9%. The fund reported a turnover ratio of 10%.

Kotak Midcap Fund received ₹637 crore during the month. It added Emcure Pharmaceuticals and City Union Bank without exiting any existing investments. Around 67.62% of the portfolio remained invested in mid-cap companies, while the top 10 holdings represented 28.24% of assets. The turnover ratio stood at 25.05%.

Edelweiss and HSBC Show Higher Portfolio Activity

Edelweiss Mid Cap Fund received inflows of ₹625 crore and added PNB Housing Finance, MRF, FSN E-Commerce Ventures and Coromandel International during June. It exited National Aluminium Company and Dabur India. Mid-cap stocks accounted for 64.51% of the portfolio, while the top 10 holdings made up 22.44%.

The fund reported a turnover ratio of 38%.

HSBC Midcap Fund attracted ₹616 crore despite having the smallest assets under management among the five funds at ₹15,352 crore. The scheme added Poly Medicure, Cochin Shipyard, AU Small Finance Bank and Acme Solar Holdings without exiting any stocks. About 61.51% of the portfolio remained invested in mid-cap companies, while the top 10 holdings accounted for 37.1% of assets. Its turnover ratio of 123% was the highest among the funds reviewed.

Fund Managers Adopt Different Strategies

The June portfolio disclosures show that strong inflows into mid-cap mutual funds did not result in a uniform investment approach. Although some portfolio managers found it better to continue with their present portfolios, others utilized the new cash flow for adding more to their portfolio. The differences in approaches indicate different styles of portfolio management despite the continued enthusiasm of investors in the mid-cap market segment.