The Motilal Oswal Midcap Fund's June 2025 portfolio reflects a bold and aggressive approach by the fund manager. With a sharp reduction in cash and arbitrage holdings, the fund is clearly increasing its equity exposure across selected midcap companies. From 39.66 percent in April to 37.17 percent in May, the fund’s cash position has now dropped significantly to 17.72 percent in June. This shift highlights a strong conviction in market opportunities ahead.

One of the most aggressive buys this month is Dixon Technologies (India) Limited, where the fund increased its holding by 139.46 percent, going from 835,200 shares in May to 1,999,999 shares in June, making up 9.07 percent of the fund’s total assets. Trent Limited saw a similar trend, with holdings rising from 2,143,194 to 4,993,219 shares, a jump of 132.93 percent, forming 9.13 percent of the AUM. Supreme Industries Limited also witnessed a big increase of 132.29 percent, now at 1,503,998 shares compared to 647,558 earlier.

The fund made fresh entries in Kaynes Technology India Limited with 1,599,316 shares, Aditya Birla Capital Limited with 2,997,819 shares, and PB Fintech Limited with 2,301 shares. Each of these companies now contributes meaningfully to the portfolio, with Kaynes and Aditya Birla forming 2.95 percent and 2.51 percent of the AUM respectively.

KEI Industries Limited saw a rise in allocation from 2,750,000 to 3,500,000 shares, a 27.27 percent increase. Kalyan Jewellers India Limited also went up slightly by 3.47 percent, now at 4,500,000 shares. Polycab India Limited saw a 2 percent increase in allocation to 2,550,000 shares.

Coforge Limited remains one of the top holdings in the portfolio with no change in the number of shares, still holding 1,800,000 shares which account for 10.48 percent of the AUM. Persistent Systems Limited appears twice in the report. One position was maintained at 525,000 shares, while another position was reduced significantly by 28.22 percent, from 1,296,500 to 930,341 shares, now forming 6.29 percent of the AUM.

Several holdings were left unchanged, including Bharti Hexacom Limited at 675,000 shares, Max Healthcare Institute Limited at 996,361 shares, Hitachi Energy India Limited at 350,000 shares, Prestige Estates Projects Limited at 400,000 shares, Tube Investments of India Limited at 2,099,990 shares, The Phoenix Mills Limited at 1,750,000 shares, and Mankind Pharma Limited at 918,589 shares.

Jio Financial Services Limited was newly added with a holding of 1,000,000 shares. On the other hand, KPIT Technologies Limited saw a small reduction of 8.74 percent, from 495,934 to 455,914 shares. One 97 Communications Limited (Paytm) witnessed a 21.82 percent decrease in allocation, from 1,290,048 to 1,009,664 shares. Interestingly, 0.55 percent of the Paytm position is now hedged (short), indicating cautious sentiment.

The fund made complete exits from multiple stocks in June. These include Persistent Systems Limited (a second position of 525,000 shares), Balkrishna Industries Limited where 1,623,049 shares were held earlier, Mazagon Dock Shipbuilders Limited, Jindal Steel & Power Limited which previously had 641,831 shares, Indraprastha Gas Limited where 3,543,000 shares were held, The Indian Hotels Company Limited with 739,000 shares earlier, CG Power and Industrial Solutions Limited with 1,080,775 shares, and Voltas Limited where the fund previously held 1,581,760 shares. All of these were completely sold off with a 100 percent exit in June.

The overall portfolio reflects an assertive tilt toward selective midcap bets with high conviction. The fund has shifted significantly toward equities, reduced defensive cash positions, and made fresh allocations in companies with strong earnings potential. At the same time, it exited several names possibly to realign the portfolio or to book profits.

This strategy shows the fund manager's confidence in a continued midcap rally or a recovery after consolidation. Time will tell how these bets play out, but the June reshuffle clearly indicates an active and aggressive portfolio management approach.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Mutual fund investments are subject to market risks. Please consult your financial advisor before investing.