Mutual Funds Increase Holdings in Financials, IT, and FMCG as FIIs Sell in June 2026

During June 2026, mutual funds demonstrated strong investment activity, increasing their holdings in the financials, IT, and FMCG sectors despite ongoing selling by foreign institutional investors, as per The Moneycontrol report.  

According to data from AMFI and NSDL, these trends reflect notable movements in the mutual fund investment landscape for the month. 

Mutual Funds Expand in Financial and IT Sectors 

In June 2026, mutual funds emerged as net buyers in several sectors, including financial services and IT. Data indicates that financial services experienced a pronounced divergence between mutual fund purchases and FII sales.  

Mutual funds spent ₹9,296 crore purchasing shares in this sector, while FIIs sold shares worth ₹12,453 crore.  

The mutual funds increased their stakes in companies like Bajaj Finance, HDFC Bank and Kotak Mahindra Bank. In contrast, they decreased holdings in ICICI Bank, SBI and Axis Bank. 

Increased Investment in FMCG and Healthcare Sectors 

Mutual funds also bolstered their positions in the FMCG sector by investing ₹3,545 crore, countering FIIs' sales of ₹5,598 crore.  

Their investments favoured Hindustan Unilever, Britannia Industries, and Tata Consumer Products, while they reduced holdings in ITC and Patanjali Foods.  

The healthcare sector saw mutual fund investments of ₹5,139 crore, aligning with a decrease in FII holdings by ₹4,976 crore.  

Companies like Ajanta Pharma and Divi's Laboratories were among those acquired, while shares in Gland Pharma and Biocon were reduced. 

Read More: Mutual Funds Drive Stock Surge: 12 Equities Gain 50-105% in 6 Months; Acutaas and Kirloskar Oil Lead in June 2026! 

Services and Telecom See Interest from Both Investors 

Unlike other sectors, both mutual funds and FIIs were net buyers in the services and telecom sectors during June 2026.  

The services sector witnessed mutual fund investments of ₹5,351 crore, contrasted by modest FII purchases of ₹334 crore. In telecom, mutual fund investments reached ₹1,860 crore, while FIIs purchased shares worth ₹412 crore. 

Conclusion 

In June 2026, mutual funds increased investments across various sectors. Purchases worth ₹9,296 crore in financials, ₹1,732 crore in IT, and ₹3,545 crore in FMCG were recorded. Healthcare saw a ₹5,139 crore investment, while ₹5,351 crore was invested in services and ₹1,860 crore in telecom. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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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