Eternal, Shriram Finance to JSW Steel : A look at top MF buys in August

Equity assets under management (AUM) for domestic mutual funds declined marginally by 0.6 percent month-on-month (MoM) to ₹36.2 trillion in August 2025, according to Motilal Oswal Financial Services (MOSL). The brokerage attributed this fall primarily to the weakness in broader market indices, with the Nifty slipping 1.4 percent during the month.

MOSL also noted that equity scheme sales declined sharply by 18.5 percent to ₹687 billion, while redemptions slowed down to ₹338 billion, a drop of 14.1 percent MoM. Consequently, net inflows moderated to ₹349 billion in August compared with ₹450 billion in July.

MOSL highlighted that sectoral allocations witnessed notable shifts in August. The weights of Automobiles, Technology, Consumer, Telecom, Retail, and Media in mutual fund portfolios increased, while sectors such as Private Banks, Healthcare, Capital Goods, Oil & Gas, Chemicals, and Real Estate saw moderation. This reflected both stock-specific buying trends and broader rebalancing by fund managers in response to market volatility.

In terms of stock-level activity, MOSL reported that the highest net buying in August was seen in Eternal (formerly Zomato), Shriram Finance, JSW Steel, and Infosys. These names attracted significant additions across multiple schemes, reflecting fund managers’ confidence in their long-term prospects despite mixed stock price movements during the month.

Top MF Stock Buys in August

Eternal: Zomato-parent Eternal stood out as the top pick among fund managers, according to MOSL. The stock saw a 12.3 percent rise in mutual fund holdings during August, with 24.59 crore shares added across schemes. Total mutual fund holdings in Eternal climbed to 216.5 crore shares, valued at ₹68,000 crore. Despite the heavy buying, the stock delivered only a modest 2 percent return in August.

Shriram Finance: Shriram Finance also witnessed strong traction, with holdings rising by 6.9 percent to 19.4 crore shares, valued at ₹11,290 crore. MOSL observed that the stock, however, lost 8 percent during August, reflecting the divergence between institutional accumulation and near-term price movements.

JSW Steel: Another name that saw robust mutual fund participation was JSW Steel, which reported a 6.4 percent increase in holdings to 10.6 crore shares, valued at ₹10,920 crore. According to MOSL, despite this institutional support, the stock delivered negative returns, underscoring sector-specific headwinds in metals.

Infosys: Infosys, one of India’s largest IT companies, also featured prominently on MOSL’s list. Mutual fund holdings in Infosys rose 5.2 percent MoM to 82.4 crore shares, with a total valuation of ₹1,21,140 crore. However, the stock declined 2.6 percent in August, continuing the pressure seen across large-cap IT names.

Bajaj Finserv: Among other notable names, Bajaj Finserv attracted incremental flows. MOSL reported that mutual fund holdings in the company increased by 5 percent MoM to 11.2 crore shares, valued at ₹21,460 crore. The stock, however, slipped 1.8 percent in August, in line with weakness in financial services counters.

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