Motilal Oswal Midcap Fund’s portfolio for May 2025 reveals a strategic shift with a renewed entry into Zomato (now listed as Eternal Limited), increasing its stake to 4 lakh shares — a complete re-entry after exiting the stock in January.

The top three holdings by allocation are Coforge (10.12% of AUM), Persistent Systems (9.43%), and Kalyan Jewellers India (8.02%), underscoring the fund’s confidence in technology and consumer-facing companies.

Dixon Technologies saw a notable rise in holdings — up 13% month-on-month — while stakes in One 97 Communications (Paytm) and Bharti Hexacom increased by 4.14% and 3.85%, respectively.

In terms of reductions, Indraprastha Gas saw the steepest cut, with holdings trimmed by 30.06%, indicating a likely portfolio rebalancing call.

On the liquidity front, the fund has slightly trimmed its cash and arbitrage exposure. While the total equity portfolio hedging through arbitrage stands at 5.99%, the overall cash position, including arbitrage, dropped to 37.17% in May, from 39.66% in April and 32.88% in March.

The fund’s actions reflect a cautiously optimistic stance, gradually increasing equity exposure while keeping a sizeable liquidity buffer amid evolving market dynamics.