What did mutual funds buy and sell the most last month?

We analysed sector-wise allocation data and found a clear pattern: fund managers are leaning into Financials but becoming selective in the Insurance sector. Want to know which fund houses were behind the big moves? And which banking and pharmaceutical stocks got a lot of love? Read on.

If you were tracking mutual fund buying activity in June 2025, one thing is clear: Banking & NBFCs and Pharmaceuticals were the stars of the month.

Mutual funds increased their exposure to the Banking & NBFC sector, the highest jump among all sectors. The rally in this space likely reflects growing optimism around credit growth, stable interest rates and robust Q1 earnings outlooks.

The buying wasn’t scattered either — it was focused. Prominent fund houses like DSP, Canara Robeco, Bandhan, SBI and Mirae Asset led the charge with substantial banking sector allocations.

At a broader fund level, the most attention went to RBL Bank, Ujjivan Small Finance Bank and Manappuram Finance.

Meanwhile, the Pharmaceuticals sector continued its upward march, likely driven by strong earnings growth and renewed investor interest in defensives amid market volatility.

The biggest pharma bulls? Nippon India, HDFC, ICICI Prudential, Aditya Birla Sun Life and Invesco fund houses all added significantly to their pharma holdings.

What mutual funds sold

While Financials and Pharma sectors saw significant inflows, the insurance sector was the most sold theme in June.

It was, in fact, broad-based selling, as most fund houses, such as Aditya Birla Sun Life, Axis, Bandhan, Franklin Templeton, ICICI Prudential (the largest seller), Kotak Mahindra, Mirae Asset and Nippon India fund houses, all cut down on their insurance holdings.

That said, the story wasn’t entirely one-sided. DSP and SBI Mutual Fund bucked the trend and significantly increased their exposure to select insurance stocks — a sign that some fund managers still see value in this space. In case of DSP, their mutual funds freshly bought ICICI Lombard General Insurance Company in June, and significantly upped their stake in Niva Bupa Health insurance, from 0.11 per cent to 3.43 per cent.

SBI Mutual Fund, meanwhile, upped their stake in Star Health & Allied Insurance (increased 2.92 per cent holding last month) and Max Financial Services.

The takeaway

Mutual funds are sharpening their bets. Banking remains the top pick as lenders ride a strong credit cycle. Pharma is seeing renewed interest thanks to better visibility on growth. But in sectors like insurance, fund houses are being highly selective — some exiting, others doubling down.

If you're building your own portfolio, it's worth tracking these fund house moves — not to blindly follow, but to understand where the smart money is flowing, and why.

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