Mutual Funds Reduce Holdings in 8 Stocks During February 2026 Amid Sharp Declines

In February 2026, mutual funds made notable adjustments by reducing their exposure to 8 stocks, reflecting a cautious strategy shift, as per ACE Mutual Fund report. This move comes as 5 of these stocks have already experienced a decline of 20–30% this year. 

Key Stocks Affected by Mutual Fund Adjustments 

LTM, formerly known as LTIMindtree Limited, saw a decrease in mutual fund schemes holding its stock, dropping to 220 in February 2026 from 240 in January 2026. The total mutual fund holding value was ₹5,824 crore. The stock's performance for the year was -32%. 

Billionbrains Garage Ventures experienced a reduction in mutual fund scheme count to 57 in February 2026 from 76 in January 2026. The total holding value was ₹4,781 crore, with a positive price performance of 4%. 

Other Notable Stocks and Their Performance 

Tata Elxsi's mutual fund schemes decreased to 94 in February 2026, compared to 109 in January 2026, with a total holding value of ₹339 crore. The stock's performance was -21% for the year. 

Swiggy saw its mutual fund scheme count drop to 238 in February 2026 from 252 in January 2026. The total holding value was ₹16,384 crore, and the stock's performance was -29%. 

SBI Cards and Payment Services had its mutual fund holdings reduced to 147 in February 2026 from 160 in January 2026. The total holding value was ₹7,784 crore, with a performance of -24% for the year. 

Read More: Mutual Fund Industry Adds 7.64 Lakh Unique Investors in February, Total Crosses 6.09 Crore! 

Additional Stocks with Reduced Exposure 

Kaynes Technology India saw a decline in mutual fund schemes holding its stock to 111 in February 2026, compared with 123 in January 2026. The total holding value was ₹3,192 crore, with a performance of -15% for the year. 

LG Electronics India's mutual fund scheme count decreased to 151 in February 2026 from 162 in January 2026. The total holding value was ₹6,264 crore, with a performance of -3% for the year. 

Oracle Financial Services Software's mutual fund schemes fell to 140 in February 2026, down from 151 in January 2026. The total holding value was ₹3,366 crore, with a performance of -16% for the year. 

Conclusion 

The reduction in mutual fund exposure to these 8 stocks in February 2026 highlights a strategic shift amid declining stock performances. While some stocks have seen significant drops, others like Billionbrains Garage Ventures have managed to maintain positive returns. 

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. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.