Within equity-oriented mutual funds, Banks, IT-Software, Finance, Pharma and Automobiles remained the most preferred sectors. Banks continued as the largest allocation at nearly 22% of equity AUM, also recording the biggest absolute rise of 31% in the last one year to ₹10.24 lakh crore. Finance exposure too increased both in value and portfolio weight (4.8% to 5.4%). In contrast, IT-software saw a clear underweighting. Allocations were inconsistent through the year and the sector’s share dropped sharply from 9.1% to 7.4%. Pharma exposure rose in absolute terms but declined in portfolio share (5.8% to 5.1%). Here’s how mutual fund industry allocations shifted over the past one year

Published on February 17, 2026