Which stocks did India's third-largest fund buy recently?

Summary: As of August 23, 2025, HDFC Flexi Cap manages nearly Rs 82,000 crore, which is a massive pool of money that makes every portfolio move worth tracking. So, what has the fund been buying and selling lately? And which single sector now commands nearly 40 per cent of its assets? Let’s find out.

If you invest in mutual funds, you probably know HDFC Flexi Cap, India’s third-largest actively managed equity mutual fund by assets under management (AuM).

AuM simply means the total money that investors, like you and me, have entrusted to the fund. Think of it as a giant pool of capital that the fund manager is responsible for investing. As of August 23, 2025, HDFC Flexi Cap manages nearly Rs 82,000 crore, a massive sum that makes every portfolio decision here worth watching.

A high AuM tells you a few things. First, it signals popularity (lakhs of investors trust this fund with their money). Second, it suggests resilience because the fund has seen multiple market cycles and continues to attract inflows. And third, a fund of this size often acts as a bellwether, showing what the ‘smart money’ is doing at scale.

So, what did HDFC Flexi Cap buy and sell last month?

The big buy: Cyient

One of the most significant moves was in Cyient, a technology solutions player that may be benefitting from strong demand for engineering services and digital transformation projects worldwide. It also announced a $100 million project to design semiconductor chips in April.

HDFC Flexi Cap increased its stake from 3.87 per cent to 4.5 per cent last month. That gives Cyient a meaningful 2.01 per cent weight in the fund’s portfolio.

Another major move came in Piramal Pharmaceuticals. The fund now holds a 6.76 per cent stake, making it one of its largest holdings. This is a clear sign that the fund manager is taking an optimistic view on the company’s turnaround story and growth potential in the pharma space.

A tilt towards large caps

Beyond individual stock picks, there’s a clear shift happening in the fund’s portfolio: a move towards large caps. This often happens when fund managers feel valuations in the broader market — especially mid and small caps — are getting too hot, which might also explain why the fund has a cash position of about 9 per cent

Here’s where the fresh buying happened in August 2025:

• Axis Bank: Now the fund’s third-largest holding, with a 6.89 per cent weight
• Infosys: 1.43 per cent weight in the fund’s portfolio
• HCL Technologies: Upped to 2.93 per cent weight
• ONGC: Now 1 per cent weight
• L&T: Now 0.86 per cent weight
• Kotak Mahindra Bank: The bank now holds a 4.19 per cent weight

In other words, the fund manager is leaning into high-quality, large-cap names that offer relative safety when markets look uncertain.

What HDFC Flexi Cap sold last month

Last month, HDFC Flexi Cap trimmed its holdings in:

• JK Lakshmi Cement (down 0.2 per cent)
• Ramco Systems
• Apollo Hospitals Enterprise
• Bosch

A look at HDFC Flexi Cap’s portfolio

Step back and look at the portfolio as a whole, and you’ll spot something striking: six of the fund’s seven largest holdings are in the financial sector.

Here are the top three holdings:

• ICICI Bank – 9.2 per cent weight
• HDFC Bank – 8.36 per cent weight
• Axis Bank – 6.89 per cent weight

Together, financials account for nearly 39 per cent of the entire portfolio, well above the category average of 28.9 per cent. This shows the fund’s strong conviction in banking and financial services.

Should you invest in this fund?

Flexi-cap funds are a great way to get diversified exposure to large, mid and small caps under one roof, and HDFC Flexi Cap remains one of the most widely held funds in this category.

So, if you are wondering if HDFC Flexi Cap deserves a place in your portfolio, head over to Value Research Fund Advisor. Our analysts have done the heavy lifting for you. They’ve handpicked a shortlist of funds that have consistently delivered across market cycles.

Explore Fund Advisor Today

Also read: HDFC Flexi Cap loads up on banks, exits a market giant