Which funds hold the most of Raamdeo Agrawal's 4 auto picks?

Summary: India’s auto sector is gaining momentum and prominent investor Raamdeo Agrawal has publicly stated his preferred auto stocks: Maruti, Eicher, Hero and M&M. Our article reveals which funds have the highest exposure to these four companies.

When Raamdeo Agrawal speaks, the market listens. And this time, the chairman of Motilal Oswal Financial Services has set his sights firmly on India’s auto sector.

Recently, Economic Times reported Agrawal as saying: “The economy moved from bicycles to motorcycles around 1990. Now, the tipping point is from motorcycles to cars.”

He is not alone. There is growing hope that the automobile industry in India is entering an upgrade cycle powered by rising incomes, GST concession, pick-up in rural demand and cheaper financing.

So, which auto companies does Agrawal favour? He pointed to four names:

• Eicher Motors, riding on strong Royal Enfield sales
• Hero MotoCorp, gaining in premium bikes and EVs
• Mahindra & Mahindra, a strong SUV pipeline, tractor momentum and new export markets
• Maruti Suzuki, fresh from its highest-ever monthly sales and supported by the GST cut from 28 per cent to 18 per cent on cars

Naturally, the next question is: Which mutual funds have the highest exposure to these four companies? We pulled the data (as of 30 November 2025; excluding index, sectoral, thematic and hybrid funds) to find out.

Funds with the highest exposure to Maruti Suzuki

1. ICICI Pru Flexicap – 7.6 per cent weight in its portfolio
2. Kotak Multicap – 5.7 per cent
3. Old Bridge Focused – 5.4 per cent
4. HDFC ELSS Tax Saver – 5.1 per cent
5. Parag Parikh ELSS Tax Saver – 4.3 per cent

Funds with the highest exposure to Eicher Motors

1. NJ Flexi Cap – 4.9 per cent weight in its portfolio
2. JM Focused Fund – 4.8 per cent
3. Axis Focused Fund – 4.1 per cent
4. Franklin India Focused Equity – 3.8 per cent
5. Axis Flexi Cap – 3.8 per cent

Funds with the highest exposure to Hero MotoCorp

1. NJ ELSS Tax Saver – 5.6 per cent weight in its exposure
2. Kotak Multicap – 4.6 per cent
3. Bank of India Multi Cap – 4.4 per cent
4. JM Midcap – 4.2 per cent
5. Quantum Value – 4.1 per cent

Funds with the highest exposure to Mahindra & Mahindra

1. DSP Large Cap – 6.3 per cent weight in its portfolio
2. Franklin India Large Cap – 5.7 per cent
3. Taurus Flexi Cap – 5.1 per cent
4. Franklin India Multi Cap – 4.4 per cent
5. Baroda BNP Paribas Focused – 4.4 per cent

A few patterns stand out clearly:

1. Kotak Multicap appears twice on the list. It has the second-highest exposure to Maruti Suzuki and Hero MotoCorp.

2. Focused funds dominate these lists. You’ll notice several focused funds across all four companies. The reason is simple. Since these funds can only invest in up to 30 stocks, they naturally take larger position sizes. So, if a fund manager believes in autos, it will show up instantly in the portfolio weight.

3. A few ELSS (Tax-saving funds) are on the list, too. That’s because ELSS funds often follow a long-term, buy-and-hold approach due to them having a three-year lock-in. So, they can be patient enough to hold on to sectors that have traditionally been cyclical in nature.

So, what should investors take away?

Stock picking sounds exciting, but it demands skill, time and a strong stomach for risk. Even though Raamdeo Agrawal has highlighted his four auto bets, there is no guarantee all of them will perform well. And if the broader auto cycle weakens, an individual investor with heavy exposure to these stocks could face meaningful losses.

This is why we recommend taking the diversified route through flexi-cap or multi-cap funds. These funds spread your money across sectors and market caps, reducing the impact of any single theme going wrong. You still participate in the auto story, but without concentration risk. It’s a far safer, more consistent way to build long-term wealth.

Want to know which diversified funds will suit you best?

Value Research Fund Advisor helps you filter noise, avoid risky bets and identify high-quality funds across sectors, autos included. Make your portfolio future-ready. 

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Also read: How to invest like the co-founder of Motilal Oswal Financial Services