Despite ongoing fluctuations in the stock market, March 2026 turned out to be a strong month for mutual funds, especially in the equity segment. Investors poured significant money into equity mutual funds, signaling continued confidence even during uncertain market conditions.
According to the latest data, net inflows into equity mutual funds rose sharply to ₹40,450 crore in March, compared to ₹25,978 crore recorded in February. This substantial increase highlights growing investor trust in long-term equity investments, even as market volatility persists.
With such a large amount of fresh capital entering the market, a key question arises: where did fund managers allocate this money? Let’s take a closer look at how some of the top-performing mutual funds adjusted their portfolios during the month.
The Nippon India Large Cap Fund attracted fresh investments worth ₹1,043.59 crore in March. Fund manager Shailesh Raj Bhan continues to prioritize diversification to manage risk effectively.
The fund currently holds a portfolio of 65 stocks. During March, it added Shriram Finance to its holdings while exiting positions in Grasim Industries, Honeywell Automation, and Tata Motors. Notably, the fund followed a low-turnover strategy, meaning minimal changes were made to the portfolio, reflecting a cautious and stable investment approach.
The HDFC Mid Cap Fund remained a top choice among mid-cap investors, receiving inflows of ₹1,475.70 crore. Managed by Chirag Setalvad, the fund holds a well-diversified portfolio of 78 stocks.
Interestingly, the fund made no additions or exits during March. This indicates a strong “buy and hold” strategy, suggesting that the fund manager has high conviction in the existing portfolio and prefers long-term value creation over frequent trading.
In the small-cap category, the Bandhan Small Cap Fund stood out with inflows of ₹1,571.93 crore. Managed by Manish Gunwani, the fund has a highly diversified portfolio of 251 stocks to spread risk.
During March, the fund added seven new stocks, including major names like SAIL, Reliance Industries, Larsen & Toubro (L&T), and Oil India. Interestingly, the portfolio is not limited to small-cap stocks alone—it also includes around 15% mid-cap and 4% large-cap exposure, offering a balanced mix across segments.
The Parag Parikh Flexi Cap Fund emerged as the biggest gainer across all categories, attracting the highest inflow of ₹3,949.93 crore in March.
Managed by Rajeev Thakkar, the fund follows a concentrated strategy with just 39 stocks in its portfolio. However, March saw a major reshuffle, with the fund exiting 34 stocks, including well-known companies like Bajaj Finance, Tata Steel, and Punjab National Bank.
Interestingly, no new stocks were added during the month. This reflects a more conservative stance, with approximately 62.5% of the portfolio allocated to large-cap stocks, indicating a focus on stability and lower risk.
Leading the multi-cap category, the Kotak Multicap Fund received inflows of ₹910 crore. Managed by Devendra Singhal, the fund maintains a diversified portfolio of 71 stocks.
In March, the fund added just one new stock—United Spirits—while maintaining a balanced allocation across market segments. The portfolio is distributed across large-cap, mid-cap, and small-cap stocks in a ratio of 41:27:30, ensuring a well-rounded investment approach.
The sharp rise in equity mutual fund inflows during March highlights a key trend—investors are staying committed to equities despite market ups and downs. This behavior reflects a growing awareness of long-term wealth creation through disciplined investing.
At the same time, fund managers are adopting varied strategies—ranging from cautious rebalancing and diversification to aggressive expansion and long-term holding—depending on market conditions and fund objectives.
As markets continue to evolve, these portfolio strategies will play a crucial role in determining future returns. For investors, keeping an eye on such changes can offer valuable insights into how professionals are navigating uncertainty in the financial markets.
