Mutual Fund Managers Show Confidence in Zomato, JSW Steel, Infosys, and More in August

Despite a prolonged market sell-off in India over recent months, mutual fund managers are demonstrating renewed confidence in select stocks. Companies like Zomato, Eternal, JSW Steel, Infosys, and Bajaj Finserv have seen significant buying activity, reflecting fund managers’ optimism even amid market volatility.

Equity AUM Marginally Declines

According to Motilal Oswal Financial Services, domestic mutual funds’ equity assets under management (AUM) declined slightly by 0.6 percent month-on-month in August 2025, settling at ₹36.2 trillion. Even as overall market sentiment remained cautious, fund managers selectively increased their stakes in companies they consider long-term performers.

Top Picks by Mutual Funds

Eternal (Zomato’s Parent Company)
Eternal, the parent company of Zomato, emerged as the top preference among fund managers. Mutual fund holdings increased by 12.3 percent in August, with 245.9 million shares added across various schemes. Total holdings in Eternal now stand at 216.5 million shares, valued at approximately ₹68,000 crore.

Shriram Finance
Fund managers also increased their exposure to Shriram Finance. Mutual fund holdings rose by 6.9 percent to 194 million shares during August, representing a total value of ₹11,290 crore.

JSW Steel
Another notable name on the list is JSW Steel. Mutual fund shareholding in the company increased by 6.4 percent in August, with the total value of holdings reaching ₹10,920 crore.

Infosys
Infosys, one of India’s largest IT companies, also saw a considerable increase in mutual fund interest. Holdings rose by 5.2 percent to 824 million shares, valued at ₹1,21,140 crore. However, the stock declined 2.6 percent during the month, reflecting pressures on major IT firms.

Bajaj Finserv
Bajaj Finserv attracted substantial buying as well. Mutual fund holdings increased 5 percent monthly to 112 million shares, worth ₹21,460 crore. Despite this, the stock declined slightly by 1.8 percent in August.

Market Implications

These selective investments highlight the confidence of fund managers in companies with strong fundamentals, even during periods of market turbulence. While overall equity AUM has seen a minor decline, active buying in certain high-potential stocks signals strategic positioning for future growth. Analysts suggest that such moves reflect a long-term outlook rather than short-term speculation, with funds focusing on companies poised for recovery and growth.

Mutual fund activity in these companies demonstrates that while the broader market may face volatility, fund managers are betting on specific sectors, including IT, steel, finance, and technology-driven services, which are expected to offer steady returns over time.