The story comes from data for September 2025 (compared to August) showing that multiple mutual-fund (MF) schemes reduced or exited exposures in a set of stocks.

For example:

Aditya Birla Fashion & Retail Ltd.: The number of MF schemes holding it fell from 62 in August to 41 in September; market value ~₹ 532 crore. The stock’s price return in CY-2025 so far is about -71 %.

Raymond Ltd.: Holdings among MF schemes collapsed from 32 in August to 1 in September; market value ~₹ 71 crore; price return in CY-2025 ~-66 %.

Sterling & Wilson Renewable Energy Ltd.: MF scheme holdings fell from 41 to 18; market value ~₹ 83 crore; price return ~-51 %.

Route Mobile Ltd.: Holdings dropped from 34 to 14; market value ~₹ 353 crore; price return ~-47 %.

Tata Motors Ltd. (Passenger Vehicles): Holdings dropped from 318 to 291 schemes; market value ~₹ 24,715 crore; price return ~-46 %.

KNR Constructions Ltd.: Holdings fell from 51 to 30; market value ~₹ 1,145 crore; price return ~-46 %.

Raymond Lifestyle Ltd.: Holdings fell from 33 to 13; market value ~₹ 328 crore; price return ~-44 %.

Network 18 Media & Investments Ltd.: Holdings fell from 31 to 10; market value ~₹ 12 crore; price return ~-30 %.

Shree Renuka Sugars Ltd.: Holdings fell from 27 to 7; market value ~₹ 8 crore; price return ~-26 %.

Westlife Foodworld Ltd.: Holdings dropped from 69 to 45; market value ~₹ 2,258 crore; price return ~-24 %.


Interpretation: The reduction by MFs signals a shift in institutional sentiment — either risk perception has risen for these stocks, or better opportunities have emerged elsewhere.

Importantly: A drop in holdings + heavy stock price decline may mean these companies are under pressure (business issues, valuation concerns, sectoral headwinds).

However: Just because MFs are reducing doesn’t necessarily mean these stocks are doomed — it could be a tactical or short‐term reallocation by fund managers.


What you as an investor should check

Do you hold any of these stocks (or stocks in similar sectors) in your portfolio (directly or via an MF)?

Understand why the holdings were cut: look at business fundamentals of these companies — revenue growth, earnings, debt, sector outlook.

Check if your MF scheme has meaningful exposure to these stocks, and evaluate whether the fund manager’s decision aligns with your risk tolerance and horizon.

Consider your overall portfolio diversification — if many of your holdings are in troubled names or heavily cut by MFs, you might want to rethink weightings.

Remember: A stock being cut by MFs doesn’t automatically mean it’s a sell for you — but it does raise a signal flag that warrants deeper review.