Adani Group bribery allegations: What it means for mutual funds

Adani Group shares fell off the cliff across the board after US prosecutors accused the conglomerate of paying over $250 million in bribes to Indian officials for solar power contracts worth an estimated $2 billion in the next couple of decades.

Given the gravity of the charges and the subsequent stock market reaction, it is understandable for equity mutual funds with significant stakes in Adani group stocks to have been impacted as well.

As per October 2024 disclosures, of the 164 actively managed equity mutual funds with exposure to the Ahmedabad-headquartered company, 18 have over 5 per cent exposure to them.

Here is the list:

Unsurprisingly, 13 of these funds belong to the sectoral or thematic categories , which tend to focus on specific industries or themes.

On the other hand, exposure to Adani stocks remains limited among diversified equity funds, reflecting better risk management practices.

Our take

Investors in these funds, particularly those investing in sectoral and thematic funds, should stay informed about the ongoing situation. Although some Adani Group shares did manage to claw back some ground in the stock market today (November 22), investors should evaluate whether this risk aligns with their financial goals.

Also read: Are your mutual funds exposed to Adani?