BHEL Stock Rallies: Mutual Funds Most Exposed to the Stock

#2 Baroda BNP Paribas Focused Fund

Baroda BNP Paribas Focused Fund was launched in October 2017.

This is a focused fund with a mandate to invest in up to 30 companies across market capitalisations. The fund is required to invest at least 65% of its assets in equity at all times.

As of 31 March 2026, the fund's AUM was Rs 6.4 bn, while the direct plan expense ratio is 1.25% per annum.

The scheme's current asset allocation is 95.33% in equity, followed by debt (4.98%).

Large-cap stocks accounted for 63.47% of the portfolio, followed by mid-caps (26.65%), and small-caps (5.20%).

In sectoral allocation, Banks accounted for 28.67% of the portfolio, followed by Telecom-Services (8.98%), Power (7.95%), Automobiles (6.76%), and IT-Software (6.35%).

As said above, with 30 stocks, the portfolio is concentrated. The top 10 stocks account for 51.98%.

The fund holds 5.57% of BHEL , making it one of the top three holdings .

Bharti Airtel has the highest weightage in the portfolio at 8.98%, followed by Axis Bank (5.85%), HDFC Bank (5.22%), and Sun Pharmaceutical (4.87%).

The portfolio's PE multiple (25.76) which is higher than the benchmark BSE 500 Index (23.9). The portfolio turnover ratio is 1.34, indicating a high churn strategy.

The fund's volatility is slightly higher than the benchmark (15.46), as indicated by a Standard Deviation of 17.29. A higher standard deviation indicates greater volatility in returns.

However, it lags in downside protection, with a lower Sortino (0.47) than the benchmark's (0.77). A lower Sortino ratio suggests the fund is generating weaker risk-adjusted returns relative to the downside risk it's taking.

The scheme also underperforms on risk-adjusted returns, with a Sharpe of 0.38 compared to the benchmark (0.6). A lower Sharpe ratio suggests the fund is delivering lower returns relative to the overall risk taken.

As a result, the fund has lagged its benchmark. Since its inception (up to 6 May, 2026), this scheme has delivered a CAGR of 8.64%, underperforming the benchmark return of 13.99%.

#3 Aditya Birla SL PSU Equity Fund

Aditya Birla SL PSU Equity Fund is an over-6-year-old fund launched in December 2019.

The fund is mandated to invest at least 80% of its AUM in the shares of PSU Companies. The scheme follows a bottom-up approach for stock picking.

The scheme invests 80-100% of its assets in equity and equity-related instruments of PSU companies. It may also choose to invest up to 20% in non-PSU opportunities, debt, and money market instruments.

As of 31 March, the fund has an AUM of Rs 53.34 bn and an expense ratio of 0.61%.

The fund currently has about 98.96% of its portfolio invested in equities, with the remaining 1.04% held in cash and cash equivalents.

The share of large-cap stocks in the portfolio is 69.83%, followed by mid-caps (23.56%) and small-caps (6.61%).

In sectoral allocation, the financial sector accounted for 38.99% of the portfolio, followed by Energy and Utilities (36.27%), Industrials (13.5%), Materials (9.17%), and others.

The top 10 stock holdings accounted for 44.66% of the portfolio.

BHEL is among the top five holdings of the scheme portfolio.

SBI had the highest weighting at 18.77%, followed by NTPC (9.17%), Power Grid (6.85%), Bharat Electronics (5.37%), and BHEL (4.51%) .

The portfolio's PE ratio stood at 10.71, broadly in line with the BSE PSE Index's 12. With PSU sector valuations still relatively inexpensive compared to broader market indices

The fund follows a moderate churn strategy, reflected in its portfolio turnover ratio of 0.31. The scheme has delivered 24.8% annualised return since inception.

As of 30 April 2026, the fund's volatility, measured by standard deviation, stood at 23.49, largely in line with the (benchmark) BSE PSU TRI's (23.91).

However, it lags in downside protection, with a lower Sortino (1.57) than the benchmark's (1.67). The scheme also underperforms on risk-adjusted returns, with a Sharpe of 0.99 compared to the benchmark of 1.06.

#4 Motilal Oswal Innovation Opportunities Fund

The Motilal Oswal Innovation Opportunities Fund is just over a year old. It was launched in February 2025. This is a thematic fund.

The fund invests in companies that will benefit from the adoption of innovative strategies or follow the innovation theme.

As of 31 March, the fund has an AUM of Rs 4.4 bn and an expense ratio of 1.18%.

The fund currently has about 90.91% of its portfolio invested in equities, with the remaining 9.09% held in cash and cash equivalents.

Small-caps dominate this scheme, accounting for 65.82%, followed by mid-caps (24.54%) and large-caps (9.64%).

In sectoral allocation, Electrical Equipment accounted for 21.73% of the portfolio, followed by Leisure Services (11.87%), IT-Software (7.24%), Consumer Durables (7.11%), and Capital Markets (7.06%).

The top 10 stock holdings accounted for 41.74% of the portfolio. With a 4.33% allocation, BHEL is among the top three holdings in the scheme's portfolio.

The portfolio has greater exposure to emerging sectors, including manufacturing, technology, and energy transition themes.

Emmvee Photovoltaic Power had the highest weight (5.31%), followed by CG Power (4.51%), Interglobe Aviation (4.25%), and Avalon Technologies (4.15%).

The portfolio's PE multiple (36.96) is at a premium to the benchmark Nifty 500 Index (23.3).

The fund follows a high-churn strategy, as reflected in its portfolio turnover ratio of 0.98. The scheme has delivered a 7.53% return since inception, outperforming the benchmark Nifty 500's 0.5% return.

#5 BNP Paribas Energy Opportunities Fund

BNP Paribas Energy Opportunities Fund was launched in February 2025.

This is a thematic fund focused on the energy sector. This scheme invests in various companies across the energy sector, from exploration to processing. Furthermore, it also invests in the oil and gas, utilities, and power sectors.

As of 31 March 2026, the fund's AUM was Rs 6.4 bn, while the direct plan expense ratio is 1.25% per annum.

The scheme's current asset allocation is 93.8% in equity, followed by debt (6.5%).

Large-cap stocks accounted for 60.60% of the portfolio, followed by mid-caps (22.5%), and small-caps (10.6%).

In sectoral allocation, the power sector accounted for 28.67% of the portfolio, followed by petroleum products (17.99%), electrical equipment (11.67%), oil (11.24%), and consumable fuels (9.5%).

The fund holds a concentrated portfolio of just 30 stocks, with the top 10 stocks accounting for 60.44%.

With 3.64% allocation, BHEL is one of the top ten holdings of this scheme.

Coal India holds the highest weightage (9.5%), followed by Reliance (9.13%), NTPC (8.97%), ONGC (7.34%), and Power Grid (6.01%).

The portfolio's PE multiple (15.48) is higher than the benchmark BSE Energy Index (10.9).

The portfolio turnover ratio is 0.77, indicating a high churn strategy.

Bottomline

BHEL's sharp rally has once again highlighted the market's growing confidence in India's capex and power sector cycle.

The stock's rising presence across mutual fund portfolios also reflects how fund managers are positioning themselves to benefit from India's long-term industrial growth cycle.

However, thematic and sector-focused funds are risky. This is why investors need to carefully analyse the schemes' risk ratios, investment strategy, and portfolio allocation.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...