Mutual funds raise investments in PSU banks in September, weight hits 17-month high

Mutual funds have raised their exposure to PSU banks, pushing the sector’s weight to a 17-month high of 3.3% in September. This marks a 30-basis-point month-on-month rise from 3% in July and August 2025, and a 70-basis-point increase year-on-year from 2.6% in September 2024, according to Motilal Oswal Financial Services.

Where is mutual fund money flowing in September? Here's the sector-wise breakdown

In September, mutual funds increased weights in NBFCs, PSU banks, metals, and automobiles, with private banks leading at 17.3%. Metals and PSU banks saw maximum gains, while technology, media, and consumer sectors experienced moderation.

How to tidy up your mutual fund portfolio and boost returns this Diwali

Diwali season prompts investors to review mutual fund portfolios. Experts suggest quarterly or bi-annual checks to align investments with goals and risk profiles. Avoid common mistakes like selling top performers or holding onto underperformers due to emotional attachment. Systematic and rational portfolio cleaning ensures investments work towards financial objectives, providing peace of mind.