- Top 5 Active Mutual Fund Schemes with the Highest Exposure
- Top 5 ETFs and Passive Funds with Highest Exposure
- What Mutual Fund Investors Need to Watch
- Conclusion
Shares of HDFC Bank recently came under significant pressure following the unexpected resignation of its part-time chairman, Atanu Chakraborty. Citing differences over "personal values and ethics," his exit investor sentiment caused the stock to drop sharply.
The HDFC Bank share price hit a new 52-week low of ₹770 on the NSE, marking a decline of nearly 22% from its record high levels.
Because HDFC Bank is India’s largest private sector lender with a consistent growth record and high liquidity, it is a staple in the portfolios of many mutual funds. According to Trendlyne data, as of February 2026, 735 mutual fund schemes hold HDFC Bank in their portfolios.
With the recent drop in the stock price, investors might be wondering which mutual funds are most exposed to this volatility. Here is a breakdown of the funds with the highest exposure to HDFC Bank.
Top 5 Active Mutual Fund Schemes with the Highest Exposure
Actively managed funds rely on the fund manager's decisions to pick stocks. Several large and popular active funds have significant capital invested in HDFC Bank.
| Scheme Name | Exposure (Value) | % of the AUM |
| Parag Parikh Flexicap | ₹10,739 crore | 7.73% |
| HDFC Flexicap | ₹7,279 crore | 7.25% |
| ICICI Prudential Largecap | ₹7,091 crore | 9.16% |
| ICICI Prudential Value | ₹4,873 crore | 8.05% |
| HDFC Balance Advantage | ₹4,837 crore | 4.50% |
Top 5 ETFs and Passive Funds with Highest Exposure
Passive funds (like Index Funds and ETFs) simply track a market index (like the Nifty 50 or BSE Sensex). Because HDFC Bank has a very high weightage in these major indices, passive funds naturally have a high exposure to the stock.
| Scheme Name | AUM (Value) | % of AUM |
| SBI NIFTY50 ETF | ₹25,240 crore | 11.83% |
| SBI S&P BSE ETF | ₹17,104 crore | 14.08% |
| UTI NIFTY50 ETF | ₹8,167 crore | 11.83% |
| UTI BSE ETF | ₹7,536 crore | 14.06% |
| Nippon India NIFTY50 ETF | ₹6,811 crore | 11.83% |
What Mutual Fund Investors Need to Watch
- Check your actual exposure first: Not all funds are equally affected. A flexi-cap fund with 7–8% allocation feels this very differently from a Nifty Bank ETF holding nearly 20%. Check your scheme's latest factsheet before drawing any conclusions.
- Passive fund investors have no escape route: If you hold a Nifty 50 or Nifty Bank ETF, your HDFC Bank weight is fixed by the index; no fund manager can reduce it. NAV will move in lockstep with the stock until the index rebalances. Understand that before reacting.
- Watch the next monthly portfolio disclosure: For active funds, the fund manager's next factsheet will reveal whether they trimmed, held, or added to the position. That's a more reliable signal than any market commentary.
- Don't confuse NAV dip with permanent loss: A 9% single-day drop in HDFC Bank with 8–10% weight in a diversified fund moves your NAV by under 1%. Redeeming now locks in that loss without giving the position time to recover.
- The next earnings cycle is the real test: Governance concerns move sentiment. Earnings move the NAV. If HDFC Bank's loan growth, margins, and asset quality hold up in the next quarterly results, the stock and your fund's exposure have a clear path to recovery.
Conclusion
The recent management changes at HDFC Bank have led to a sharp reaction in its stock price. Given the bank's massive size and importance in the Indian equity market, a large number of mutual funds, both active and passive, have significant exposure to it.
Investors holding these mutual funds may see some short-term impact on their portfolio's Net Asset Value (NAV) due to the stock's decline. However, mutual funds are inherently diversified, which helps mitigate the risk of a single stock underperforming over the long term.
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