In 2025 so far, Indian mutual funds have placed half of their equity inflows—roughly ₹2.7 lakh crore—into only 19 stocks including names like Reliance Industries and State Bank of India, reflecting a highly concentrated deployment strategy. Such concentration persists even as returns have turned muted and cash levels remain elevated. Portfolio-managers caution that narrow participation may increase risk of drawdowns if market breadth weakens. Given this, analysts suggest monitoring whether flows broaden out into mid-caps and small-caps or remain clustered in large-caps.