Reliance Industries fell 25% this year: Which mutual funds have the highest exposure — and should you be worried?

Reliance Industries has declined nearly 25% over the past year, dragging down the performance of several equity mutual funds that hold significant stakes in the stock. This sharp correction has raised questions about the concentration risk in specific schemes, particularly those with large allocations to the conglomerate. While the drop reflects broader market volatility, the impact varies depending on the fund's investment strategy and sector focus.

For investors, the key takeaway is that a fund's performance is heavily tied to its top holdings. A fund with a high exposure to Reliance may have delivered lower returns recently, but it could also be well-positioned for a recovery if the stock rebounds. It is important to review the fund's portfolio composition to understand the source of its returns and whether the concentration aligns with your risk appetite.

Moving forward, investors should monitor the fund's quarterly portfolio disclosures for any changes in the holding size. A reduction in exposure could signal a shift in strategy, while continued holding might indicate confidence in the stock's long-term potential. Keep an eye on broader market trends and the company's performance to gauge the next move.