HDFC Bank down 25% in a year: Which mutual funds have the highest exposure?

HDFC Bank shares have had a rough run. The stock is down 28.4 percent so far in 2026 and 25.34 percent over the past one year.

The bank has also been in the news after losing its position as the largest mutual fund holding by value to ICICI Bank in July, ending a three-year run at the top.

But HDFC Bank continues to feature among the top holdings of several equity mutual funds.

A look at large-cap, mid-cap, small-cap, flexi-cap and multi-cap funds shows that 16 schemes had 8 percent or more of their portfolios in HDFC Bank as of July 2026.

For this analysis, we have limited the current list to schemes where HDFC Bank accounted for at least 8 percent of the portfolio. The 8 percent cut-off is used to narrow the universe for comparison and does not represent a definition of high exposure.

So, which funds currently have the highest exposure to HDFC Bank? How have their portfolio weights changed compared with July 2025? And how have these schemes performed?

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Which funds have the highest HDFC Bank exposure?

DSP Large Cap Fund has the highest exposure among the funds considered, with HDFC Bank accounting for 9.58 percent of its portfolio as of July 2026. It is followed by Nippon India Large Cap Fund at 9.12 percent and Motilal Oswal Large Cap Fund at 9.06 percent.

Mirae Asset Large Cap Fund and UTI Large Cap Fund follow, with allocations of 8.91 percent and 8.87 percent, respectively.

Of the 16 schemes with at least 8 percent exposure, 14 are large-cap funds and two are flexi-cap funds. No mid-cap, small-cap or multi-cap fund in the dataset crosses the 8 percent mark.

How has HDFC Bank exposure changed in a year?

The July 2026 snapshot only tells part of the story.

To see how portfolio weights have changed, we compared schemes that had at least 8 percent exposure to HDFC Bank in either July 2025 or July 2026.

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Several funds that were above the 8 percent mark a year ago are now below it.

HDFC Large Cap Fund’s HDFC Bank weight declined from 10.13 percent in July 2025 to 7.21 percent in July 2026. Mahindra Manulife Flexi Cap Fund went from 9.25 percent to 3.97 percent, while HDFC Flexi Cap Fund moved from 9.01 percent to 6.11 percent.

Invesco India Largecap Fund’s weight moved from 8.58 percent to 4.37 percent, while SBI Flexicap Fund went from 8.57 percent to 5.61 percent.

There were also funds where HDFC Bank’s portfolio weight increased over the same period.

DSP Flexi Cap Fund moved from 5.46 percent in July 2025 to 8.52 percent in July 2026. Bandhan Flexi Cap Fund went from 7.86 percent to 8.40 percent.

Nippon India Large Cap Fund moved from 8.93 percent to 9.12 percent, while DSP Large Cap Fund went from 9.50 percent to 9.58 percent.

Importantly, these numbers show the change in HDFC Bank’s weight in each scheme’s portfolio between two points in time. A decline in portfolio weight does not necessarily mean that the fund sold shares of HDFC Bank.

How have the funds with 8% plus exposure performed?

The 16 funds that currently have at least 8 percent exposure to HDFC Bank have delivered varying returns.

On a one-year basis, returns among schemes with available data range from a decline of 1.34 percent for Mahindra Manulife Large Cap Fund to a gain of 4.95 percent for DSP Flexi Cap Fund.

Over three years, ICICI Prudential Large Cap Fund has the highest CAGR among these schemes with available data, at 12.25 percent. Nippon India Large Cap Fund has the highest five-year CAGR in the group at 13.90 percent.

The differences are visible even among schemes with fairly similar HDFC Bank weights. For instance, several funds have between 8 percent and 9 percent of their portfolios in the stock, but their one-year returns vary.

The return numbers are included only to provide a performance snapshot of the funds covered in this analysis. They should not be linked directly to the schemes’ HDFC Bank exposure. A mutual fund’s returns are driven by its overall portfolio and several other factors, and HDFC Bank is only one of the stocks held by these schemes.

Similarly, a change in HDFC Bank’s portfolio weight between July 2025 and July 2026 does not, on its own, show why that allocation changed.

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