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Mutual funds that don't have commitment phobia

We study the longest-held stocks by mutual funds and their performance

Longest-held stocks in mutual funds | Most held stocks in funds

Legendary investor Warren Buffett once said, "Our favourite holding period is forever". This philosophy is evident in his long-term investments like Coca-Cola and American Express , which he has held for more than three decades. At Value Research, too, we echo his wisdom of long-term investing.

But what about Indian mutual funds ? Are there any funds that have stayed committed to a stock for years and years? Let's find out.

Criteria for selection

  • We hunt for funds that have been going rock-solid with a stock for at least 15 years.
  • The mutual fund-stock relationship should have been going steady at all times. There should have been no break-up in between.
  • The mutual fund is still going out with the stock.
  • There is significant allocation in the mutual fund portfolio (average of 2 per cent or more)
  • Only diversified equity-oriented funds are considered, including hybrid funds like aggressive hybrid and dynamic asset allocation funds.

Our findings

The revelation is intriguing: We found just 18 stocks and 28 mutual funds that stood the test of time, both in sickness and in health.

Let's talk performance
One might assume that the warm embrace of mutual funds might have paid off handsomely. It has, indeed, but there's more to the story.

Digging into the numbers, we compared the performance of these stocks against their respective benchmarks (BSE Sensex TRI for investments that predate the benchmark).

The findings reveal that 35 of the 39 outperformers have outperformed by more than 1 per cent, and 14 out of 15 underperformers have lagged by more than 1 per cent.

The most rewarding long-term holdings

Company Held by Held for Average allocation in the fund (%) Returns (%) Benchmark returns (%)
Larsen & Toubro Aditya Birla Sun Life Focused 18 years 1 month 3.1 116.3 13.7
Reliance Industries Aditya Birla Sun Life Focused 18 years 1 month 4.8 35.6 15.1
Reliance Industries Bandhan Large Cap 17 years 3 months 7.1 29.4 15
Infosys Franklin India Flexi Cap 27 years 8 months 6.3 17.1 7.8
HDFC Bank HSBC Large Cap 17 years 7 months 6.6 25.8 14.1
Note: Returns and benchmark returns are Value Research estimates based on monthly portfolio disclosures up to October 31, 2023. 

The most painful long-term holdings

Company Held by Held for Average allocation in the fund (%) Returns (%) Benchmark returns (%)
State Bank of India HDFC Top 100 22 years 5 month 5.9 9 13.5
ITC ICICI Prudential Bluechip 15 years 5 month 4.2 8.7 14.7
Infosys Sundaram Focused 18 years 5.1 12.4 16.6
State Bank of India Nippon India Multi Cap 18 years 8 months 4.7 13 16.2
ITC SBI Bluechip 17 years 8 months 3.3 9.6 14.2
Note: Returns and benchmark returns are Value Research estimates based on monthly portfolio disclosures up to October 31, 2023.

Notable mentions

The funds referenced herein should not be construed as investment recommendations. For a curated list of funds, visit our ' Analysts' Choice ' section. Select a fund aligning with your goals and start investing.

Also read: What is 'long' in long-term investing


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