ITC, Swiggy, and Bajaj Auto Among Top Picks for Mutual Funds in May 2025

After hitting year-to-date lows in April 2025, Indian equity markets began showing signs of a rebound in May, prompting a resurgence in block deals and Offer for Sale (OFS) activity. As the broader market steadied, mutual funds actively reshuffled their portfolios, betting on a mix of large-cap and mid-cap stocks.

SBI Mutual Fund

India’s largest asset manager went bullish on Eternal (₹2,397 crore), ITC (₹2,341 crore), and HDFC Bank (₹1,371 crore). It significantly trimmed positions in TCS (₹1,191 crore), Solar Industries (₹879 crore), and Mahindra & Mahindra (₹575 crore). SBI MF also initiated new positions in demerged entities such as Raymond Realty and Aditya Birla Lifestyle, while fully exiting from ITC Hotels. Other fresh buys included Asian Paints and BHEL, whereas Coromandel International, Sanofi Consumer, and Go Digit saw complete exits.

HDFC Mutual Fund

HDFC MF placed fresh bets on Swiggy, still trading below its IPO price, and Schloss Bangalore, the holding company of Leela Hotels. It exited completely from Mahindra Holidays and BSE, despite the latter hitting record highs. The fund upped its exposure to PSU banks like SBI and Bank of Baroda, and consumer durables major Havells India. Meanwhile, it pared down its stake in Hindustan Aeronautics, Indian Hotels, and Max Healthcare.

Kotak Mutual Fund

New entries for Kotak MF in May included Bajaj Auto, KFin Technologies, PNB Housing, and PSU player Engineers India. It fully exited stocks like Vedant Fashions, while raising its stake in Swiggy and Dixon Technologies. Holdings in Reliance Industries, Ramco Cements, and Coromandel International were reduced.

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Axis Mutual Fund

BHEL was among Axis MF’s fresh investments for the month. The fund exited completely from Ambuja Cements, LIC, and Shriram Finance. Notably, while Kotak MF reduced its Reliance exposure, Axis went the opposite way, increasing stakes in both Reliance Industries and Larsen & Toubro. The fund trimmed positions in Sun Pharma, Varun Beverages, and Kotak Mahindra Bank.

Nippon India Mutual Fund

This fund house made fresh allocations to Ramco Cements, BPCL, and SAIL, while increasing exposure to ITC, Swiggy, and IndiGo (InterGlobe Aviation). On the sell side, it trimmed stakes in ONGC, Dixon Technologies, and Eicher Motors, and exited completely from Greenpanel Industries, Zydus Lifesciences, and Elgi Equipments.

Quant Mutual Fund

Showing a clear tilt towards largecaps, Quant MF added Bajaj Auto, ITC, and DLF to its portfolio. It exited PSU names like BHEL and market outperformers such as Coforge and Bajaj Finserv. The fund increased its stake in KPR Mills, while reducing exposure to CONCOR and Reliance Industries.

ICICI Prudential Mutual Fund

New names in ICICI Pru MF’s portfolio included Suprajit Engineering, Blue Star, and GE Shipping. Full exits were made from Delhivery, Dr. Lal PathLabs, and India Cements. It raised its holdings in NTPC, HUL, and Sun Pharma, and cut positions in FSN E-Commerce (Nykaa), Coal India, and Dalmia Bharat.

Franklin Templeton Mutual Fund

Franklin Templeton increased its holdings in TCS (₹246 crore), PNB Housing (₹134 crore), and PI Industries (₹129 crore). It reduced exposure to Infosys (₹313 crore), Bharti Airtel (₹161 crore), and Page Industries (₹136 crore). Suzlon Energy and Sagility India were new entries, while Shree Cement was dropped entirely from the portfolio.

Conclusion

Mutual Funds appear to be re-aligning their portfolios aggressively, indicating confidence in a market turnaround. The May reshuffle underscores a keen interest in consumption, PSU, and infrastructure themes, along with strategic exits from high-performing or demerging entities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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