Which Stocks Did Mutual Funds Buy in September 2026? Where Are Major AMCs Investing?

Indian equity mutual funds received more than ₹38,300 crore in September 2026, even as the stock market remained under pressure. But where did fund managers actually put their money? The answer is more interesting than a list of popular stocks.

A comparison of August and September portfolios across major fund houses reveals buying in private banks, telecom companies, automobiles, financial services and selected smaller businesses. HDFC Bank, Kotak Mahindra Bank, Bharti Airtel and ICICI Bank appeared in multiple schemes with increased holdings. At the same time, some fund managers were reducing exposure to these very companies.

That difference matters. Mutual funds do not invest as one group, and a stock attracting buying from several schemes may still face selling from others.

So, which stocks attracted fund manager interest in September, where did the biggest portfolio changes appear, and what should individual investors learn from them?

Where Did Mutual Fund Investors Put Their Money in September 2026?

According to the September data reported by the Association of Mutual Funds in India, net inflows into equity-oriented mutual funds rose to approximately ₹38,306 crore, compared with ₹29,329 crore in August. That represents an increase of about 31% in a single month.

Small cap, mid cap and flexi cap funds attracted particularly strong inflows. These categories together accounted for a substantial share of the money entering equity mutual funds.

These inflows tell us where investors were putting money, but not exactly which stocks fund managers purchased. A small cap fund receiving fresh investments, for example, does not necessarily deploy that money immediately or distribute it equally across its existing holdings.

To understand actual changes in portfolios, we need to compare the number of shares held at the end of August with the number held at the end of September. That reveals which positions became larger, which were reduced and which companies entered or left selected schemes.

Which Stocks Did Major Mutual Fund Houses Accumulate?

The September portfolio changes show that buying was not confined to PPFAS or any single fund house. Large established AMCs and smaller fund houses made meaningful changes across several sectors.

The table below provides a cross-AMC snapshot.

Source. August and September 2026 scheme portfolio comparisons. Quantities rounded. Each row highlights one change in one selected scheme and does not represent the consolidated net activity of the entire AMC.

Three important patterns emerge. First, large private banks attracted additions across several independent fund houses. Second, telecom companies appeared repeatedly in portfolios where managers increased existing positions. Third, buying remained selective, with some funds increasing individual companies while other managers reduced their holdings.

This is more useful than looking at the largest change in share count alone. It tells us where different investment strategies are finding opportunities and, equally importantly, where managers disagree.

Why Are Mutual Funds Increasing Holdings in Private Banks?

Private banking stocks were among the most repeatedly accumulated companies in the portfolios examined. HDFC Bank, ICICI Bank and Kotak Mahindra Bank appeared in multiple schemes with higher September share counts.

However, the pattern was not identical across all three stocks.

HDFC Bank Attracted Buying From Several Major Funds

HDFC Bank provides one of the clearest examples of buying across independent fund houses.

Nippon India Large Cap Fund increased its holding by 35 lakh shares, ICICI Prudential Large Cap Fund added 20 lakh shares, and Aditya Birla Sun Life Flexi Cap Fund added approximately 13.54 lakh shares. HDFC Flexi Cap Fund and WhiteOak Capital Flexi Cap Fund also increased their holdings.

These additions matter because the schemes belong to different fund houses. Their investment approaches, portfolio sizes and existing exposures are not identical.

Why might a large private bank remain attractive to professional investors? Banking profitability depends on several moving parts, including loan growth, deposit growth, interest margins, credit costs and operating efficiency. A bank with healthy lending opportunities can still disappoint investors if its funding costs rise too quickly or bad loans increase.

HDFC Bank is also a widely held institutional stock. Its share price and earnings expectations matter to many funds, making its valuation an important consideration for fund managers.

Yet the buying was not unanimous. Franklin India Flexi Cap Fund reduced its HDFC Bank position by approximately 35.25 lakh shares, while UTI Flexi Cap Fund reduced its holding by about 1.67 lakh shares. JioBlackRock Flexi Cap Fund also cut its position.

The lesson is that broad institutional ownership does not mean every fund manager sees the same opportunity at the same price.

Kotak Mahindra Bank Saw a Major Addition From SBI Mutual Fund

The most striking Kotak Mahindra Bank change among the reviewed large cap schemes came from SBI Large Cap Fund. It increased its holding by 98 lakh shares, taking the position to 5.78 crore shares at September-end.

The stock accounted for approximately 4.60% of the scheme's net assets, compared with a lower allocation in August. This makes the addition important not just because of the number of shares involved, but because Kotak became more significant within the fund.

Other funds also increased their holdings. Aditya Birla Sun Life Flexi Cap Fund added 5 lakh shares, TRUST Flexi Cap Fund added approximately 3.44 lakh shares, Invesco India Flexi Cap Fund added 1.88 lakh shares and HDFC Flexi Cap Fund added about 1.09 lakh shares.

A possible investment argument for a private sector bank involves the relationship between deposit growth, loan growth, margins and profitability. But buying records do not tell us the managers' precise reasons, and an increase in ownership does not prove that the stock is undervalued.

Franklin India Flexi Cap Fund, for instance, reduced its Kotak Mahindra Bank holding by approximately 12.68 lakh shares. This reinforces why investors should examine the full picture rather than assume that several purchases establish a market-wide consensus.

ICICI Bank Shows Why Different Fund Managers Can Disagree

ICICI Bank also appeared in several portfolios with increased holdings.

HDFC Flexi Cap Fund added 4 lakh shares, Invesco India Flexi Cap Fund added around 3.88 lakh shares, WhiteOak Capital Flexi Cap Fund added about 2.11 lakh shares and TRUST Flexi Cap Fund added 51,666 shares.

Edelweiss Flexi Cap Fund made an especially noticeable change, increasing its position by about 13.76 lakh shares. ICICI Bank accounted for approximately 5.18% of its September portfolio.

Meanwhile, Nippon India Large Cap Fund reduced its holding by approximately 13.58 lakh shares. Mirae Asset Focused Fund and PGIM India Flexi Cap Fund also recorded reductions.

These contrasting moves do not necessarily mean some managers expect the banking sector to perform well while others expect it to weaken. A manager may prefer one bank over another, trim a position because it has become too large, or make room for opportunities elsewhere.

For retail investors, the important question is not simply whether ICICI Bank was bought or sold. It is whether the bank's growth, profitability, risks and valuation support its place in a diversified portfolio.

Why Did Bharti Airtel and Indus Towers Attract Mutual Fund Buying?

Telecom is another area where the same company appeared in multiple fund houses with increased holdings.

The strongest cross-AMC pattern came from Bharti Airtel, while Indus Towers illustrated how relatively small existing positions can change sharply in one month.

Bharti Airtel Appeared Across Several Independent AMCs

The August and September comparisons identified additions to Bharti Airtel in schemes managed by ICICI Prudential, PPFAS, Invesco, Canara Robeco, WhiteOak Capital, Franklin Templeton, TRUST and JioBlackRock.

Some of the individual increases included 12.59 lakh shares in Parag Parikh Flexi Cap Fund, 6.82 lakh in ICICI Prudential Large Cap Fund and 1.82 lakh in Invesco India Flexi Cap Fund. Canara Robeco Flexicap Fund added another 1.10 lakh shares.

This breadth makes Bharti Airtel worth examining. Unlike a purchase driven by one scheme's portfolio reshuffle, the changes involve several independently managed portfolios.

The business explanation is relatively straightforward. Telecom operators earn revenue from customers paying for mobile, broadband and related connectivity services. Revenue growth can come from adding customers, increasing average spending per user and encouraging customers to use more services.

However, higher revenue does not automatically mean higher profit. Network investment, spectrum costs, financing requirements and competition determine how much additional revenue becomes cash flow.

The portfolio additions identify institutional interest, but investors still need to assess whether Bharti Airtel's expected earnings growth justifies its market valuation.

Indus Towers Saw a Sharp Increase Across Selected Funds

Indus Towers appeared in selected portfolios at PPFAS, DSP and Nippon India.

Source. August and September 2026 portfolio comparisons of the named schemes.

Parag Parikh Flexi Cap Fund increased its Indus Towers share count by more than eight times. That is a substantial percentage change, but the stock represented only about 0.18% of the fund's September portfolio.

The distinction matters. A percentage increase can appear extraordinary when the starting position is very small. Investors should examine the final allocation to understand how important the stock actually became.

Indus Towers operates telecom infrastructure used by mobile operators. Demand for towers, network expansion, customer payments and capital spending influence its financial performance.

Its earnings profile is therefore different from Bharti Airtel's, even though both businesses are connected to telecom growth. A fund can be optimistic about mobile data demand without assigning the same investment case to operators and tower companies.

Which Other Stocks Saw Important Mutual Fund Additions?

Banking and telecom were prominent in the reviewed portfolios, but September buying extended to other businesses. Several funds made large changes in companies linked to power, financial services, property, automobiles and consumer demand.

Quant Increased Tata Power, While PPFAS Expanded DLF

Quant Flexi Cap Fund increased its Tata Power holding by approximately 68.56 lakh shares. The position reached roughly 1.27 crore shares and accounted for about 6.26% of the scheme's September assets, compared with around 2.77% in August.

That change is notable because it affected the portfolio's allocation substantially. It does not reveal whether the fund was positioning for electricity demand growth, the company's broader business mix, its valuation or another consideration.

For power companies, investors should examine operating profitability, debt, capital expenditure and the returns expected from new projects. Rising electricity demand creates opportunities, but large investment requirements can also affect cash generation.

Meanwhile, Parag Parikh Flexi Cap Fund increased its DLF holding from approximately 1.37 crore shares to 5.28 crore shares. The stock's allocation rose from 0.64% to 2.45% of the portfolio.

This made DLF a much more meaningful position for that particular scheme. However, the reviewed evidence does not establish a similar level of buying across the entire mutual fund industry.

DLF's long-term performance depends on property bookings, customer collections, project launches and execution. Its rental operations provide an additional business stream. Investors should evaluate how future projects translate into revenue and cash flow rather than assume that institutional buying guarantees a property-market recovery.

Bajaj Finance, Muthoot Finance and Other Financial Stocks Also Featured

Financial services buying was not limited to banks.

SBI Focused Fund increased its Bajaj Finance holding by 60 lakh shares, taking the position to 4.70 crore shares. The stock accounted for approximately 8.99% of the scheme's September portfolio, making it one of the fund's major investments.

The same scheme also increased its Muthoot Finance holding by approximately 9.15 lakh shares. Mirae Asset Focused Fund separately added around 9.85 lakh Bajaj Finance shares.

Quant BFSI Fund, a sector-focused scheme, disclosed fresh positions in Manappuram Finance, LIC Housing Finance and Nippon Life India Asset Management. Each became a meaningful part of that particular scheme.

These companies all belong broadly to financial services, but their business models differ. Consumer lending, gold-backed lending, housing finance and asset management have different revenue sources and risks.

For example, a lending business must grow its loan book without allowing credit losses to rise disproportionately. An asset management company depends more directly on assets managed, fee income and the mix of investment products.

Treating all these purchases as one banking or finance bet would hide those differences.

Automobile and Consumer Businesses Saw Selective Buying

ICICI Prudential Flexi Cap Fund increased its Mahindra & Mahindra holding by 4 lakh shares and its TVS Motor holding by 2.50 lakh shares. Parag Parikh Flexi Cap Fund also added approximately 12.77 lakh Mahindra & Mahindra shares, while JioBlackRock Flexi Cap Fund made a smaller addition.

The auto sector offers exposure to vehicle demand, product launches, financing conditions and input costs. But passenger vehicles, tractors, motorcycles and commercial vehicles can have very different demand cycles.

Other schemes made additions outside the most widely followed large-cap names.

Motilal Oswal Small Cap Fund increased its CCL Products holding by approximately 2.99 lakh shares and Dr Agarwals Health Care by about 2.21 lakh shares. WhiteOak Capital Flexi Cap Fund increased its Nestle India holding by roughly 1.69 lakh shares.

These examples show why a proper mutual fund holdings analysis cannot be restricted to the Nifty 50. Smaller companies and specialised businesses can be important to individual schemes even when they do not dominate industry-wide discussions.

Which Stocks Did Mutual Funds Reduce or Exit in September?

Buying tells only half the story. September also brought meaningful reductions, and some of these occurred in stocks that other AMCs were simultaneously accumulating.

Source. August and September 2026 holdings comparisons for the named schemes.

The table makes an important point. A stock appearing in both buying and selling lists is not a contradiction. Different managers have different return expectations, existing concentrations and investment strategies.

One of the more interesting reductions came from Motilal Oswal Midcap Fund, which reduced One 97 Communications by approximately 19.22 lakh shares. Despite the reduction, the company still represented about 8.64% of the fund's September portfolio.

That is not a complete exit. It is a smaller position within a portfolio that continues to hold the company.

The distinction is equally important for mutual fund investors. A fund reducing a holding may simply be controlling concentration rather than abandoning its investment thesis.

PPFAS Completely Exited Great Eastern Shipping in Two Schemes

Parag Parikh Flexi Cap Fund and Parag Parikh ELSS Tax Saver Fund removed Great Eastern Shipping from their September core-equity portfolios.

The flexi cap scheme held approximately 12.74 lakh shares in August, while the ELSS scheme held 78,309 shares. Neither position appeared in the corresponding September disclosures.

This represents a complete month-end portfolio exit in the two identified schemes, rather than a reduction in allocation caused by share-price movement.

Nevertheless, the disclosures do not explain why the managers exited. They also do not establish that the sale proceeds were specifically used to finance additions to DLF or other companies.

What Do the September Portfolio Changes Reveal About Sector Trends?

The most visible pattern in the reviewed portfolios was selective buying within financial services and telecom. Private banks appeared repeatedly, while additions to Bharti Airtel were spread across several independent fund houses.

But September was not a simple shift into one sector and out of another.

In energy and power, Quant Flexi Cap Fund increased Tata Power, Axis Large & Mid Cap Fund added Reliance Industries and JioBlackRock Flexi Cap Fund increased ONGC. At the same time, Nippon India Large Cap Fund and PGIM India Flexi Cap Fund reduced Reliance Industries in their portfolios.

Similarly, automobile additions appeared in some schemes while reductions occurred in other auto and auto-component companies. This points to stock selection rather than a uniform decision about an entire industry.

It would therefore be misleading to conclude that banking or telecom received the highest net purchases across all Indian mutual funds solely from these examples. Establishing that would require combining every eligible scheme's holdings at each AMC and comparing the industry-wide totals after adjusting for corporate actions.

For investors, the more useful lesson is that sector labels can conceal very different businesses. Two stocks in the same industry may have different profitability, growth prospects, risks and valuations.

Does Buying by Several AMCs Make a Stock Attractive?

A stock being accumulated by several fund houses is worth investigating, but it is not sufficient evidence that its price will rise.

There are 3 reasons for this.

First, fund managers have different investment objectives. A large cap fund may add a stock because it fits the scheme's investment universe, while a value fund may focus on the gap between price and estimated business value. A sector fund has a narrower set of eligible companies.

Second, the size of the holding matters. An increase of 500% from a tiny starting position can be less important than a 5% addition to a fund's largest investment.

Third, monthly holdings data show positions on two dates. They do not reveal every trade executed during the month, the average price paid, or the exact reason for a purchase.

This is why investors should not confuse mutual fund accumulation with a recommendation to purchase the same stock independently.

Share Count and Portfolio Weight Can Tell Different Stories

Mahindra & Mahindra in Parag Parikh Flexi Cap Fund provides a useful example.

Its share count increased by about 7.2% during September, yet its portfolio weight declined from approximately 3.97% to 3.89%.

How can that happen if the fund purchased more shares?

Portfolio weight depends on the market value of a stock relative to the value of the entire fund. If other holdings perform differently, or the fund's overall assets change, a stock's percentage allocation can decline despite an increase in quantity.

The reverse is also possible. A stock can become a larger percentage of the portfolio simply because its market price rises, even if the fund manager does not purchase additional shares.

Therefore, investors should examine both the change in share count and the resulting percentage allocation before deciding whether a position has become more significant.

What Should Retail Investors Learn From Mutual Fund Buying?

September's portfolio changes provide a useful way to understand how professional investors manage their money. But the practical value lies in knowing what the data can and cannot tell us.

A fund increasing HDFC Bank or Bharti Airtel does not automatically mean every individual investor needs more exposure to those stocks. Many people already own the same companies indirectly through large cap, flexi cap, index or other equity mutual funds.

Buying a stock directly without checking existing fund holdings can create more concentration than expected.

Before drawing conclusions from mutual fund activity, investors should consider the following.

1. Check how many independent fund houses are involved. Five schemes belonging to the same AMC do not represent five independent fund-house decisions.
2. Distinguish a new investment from an existing addition. Opening a position can reflect a different portfolio decision from gradually adding to an established holding.
3. Look at the final portfolio weight. A large increase in share count is not necessarily a large portfolio commitment.
4. Understand why the company may grow. Examine business performance, earnings, cash flow, balance-sheet strength and valuation instead of relying only on institutional ownership.
5. Check existing exposure through mutual funds. Investors holding several funds may already have substantial investments in the same banking, telecom or financial services companies.

Following what major fund houses own can be informative, but understanding why a company earns money and what risks could change its outlook is more valuable over the long term.

Conclusion. What Does September Mutual Fund Buying Tell Us?

September 2026 showed that mutual fund buying was far broader than the portfolio changes of one popular fund.

Major AMCs including SBI, HDFC, ICICI Prudential, Nippon India, Aditya Birla Sun Life, Quant, Mirae Asset and several smaller houses increased selected holdings across banks, telecom, financial services and other industries. HDFC Bank, Kotak Mahindra Bank, ICICI Bank and Bharti Airtel appeared repeatedly in the reviewed additions.

Yet the same records also showed meaningful selling in some of these companies. That is the most useful takeaway from the month.

Professional investors were not making one collective decision about the market. They were making different choices based on their portfolios, investment styles and assessments of individual businesses.

For retail investors, mutual fund holdings can be a starting point for research. The stronger investment decision comes from understanding the company's earnings potential, valuation and risks, not simply following the number of fund houses appearing on its shareholder list.