Which Mutual Funds Have the Highest BSE Exposure After the NSE Listing?

Have you ever checked your mutual fund statement and wondered which companies your money actually sits in? If you hold a midcap, financial services or capital markets fund, there is a good chance a slice of it is invested in BSE. Now that the National Stock Exchange (NSE) has finally listed, many investors are asking whether that slice could change. Let’s look at which mutual funds have the highest BSE exposure and what the NSE listing might mean for them.

NSE Listing: The Key Numbers

NSE made its stock market debut on 24 September 2026. Interestingly, India’s largest stock exchange did not list on its own platform. Its shares debuted on the Bombay Stock Exchange (BSE) instead, with trading starting at 10 AM.

A random example: An investor who bought one lot of 8 shares at ₹1,785 gained ₹120 at listing. By 12.55 PM, with the stock at ₹1,845, that gain had grown to ₹480 per lot, or roughly 3.36%.

Passive Funds Have the Highest BSE Exposure

The largest BSE exposure sits in passive funds that track the capital markets theme. These funds follow indices built around India’s market infrastructure companies, so a large BSE holding is part of their mandate rather than a fund manager’s bet.

Sectoral and Thematic Funds With BSE Exposure

Among active sectoral and thematic mutual funds, financial services schemes lead the pack.

Diversified Equity Funds With BSE Exposure

BSE also appears in diversified active equity portfolios, although the holdings are smaller as a share of assets under management (AUM).

What Does This Mean for Your ₹1 Lakh?

Percentages can feel abstract, so here is a simple way to picture BSE exposure. If you invested ₹1,00,000 in each fund, this is roughly how much would be linked to BSE:

In other words, a capital markets index fund holds more than four times as much BSE as a typical midcap fund.

Note: The values shown above are approximate and are intended only to illustrate the indicative exposure to BSE based on the respective fund holdings. Actual exposure may vary with changes in portfolio composition, market prices and other factors. 

Will Portfolios Be Reshuffled After the NSE Listing?

This is the big question for investors. The short answer is that it depends on the type of fund.

Nifty-linked index funds

• The NSE listing does not automatically mean these funds will swap BSE for NSE.
• Harsh Vardhan Dawar, Founder of Wealth Cafe, explained that because NSE is listed only on BSE, it will not enter Nifty-branded indices in the usual way. Instead, it is expected to come in through BSE’s own index family and global benchmarks, and should qualify for various BSE indices over time.

BSE index funds

• Dawar suggested that the BSE 150 MidCap and BSE 250 LargeCap indices could see changes, depending on NSE’s free-float market capitalisation after listing.
• Adil Chacko, Executive Director at Anand Rathi Wealth Limited, noted that if NSE becomes eligible for a benchmark and enters it at a scheduled rebalancing, index funds tracking that benchmark will add NSE and adjust other holdings in line with the index rules.

IPO-focused funds

• Funds such as Edelweiss Recently Listed IPO Fund and Mirae Asset BSE Select IPO ETF could see a portfolio reshuffle as NSE joins the listed universe.

Active funds

• According to Dawar, active mutual funds now have an alternative to BSE for their capital market infrastructure exposure, and are likely to add NSE.
• He added that thematic funds investing in financial services are expected to hold a sizable NSE allocation.

Fund House Overlap With NSE Anchor Investors

There is also some overlap between fund houses holding BSE and those whose schemes were among the NSE anchor investors. The anchor list included:

• Nippon India
• Invesco
• SBI
• HDFC
• Franklin Templeton
• Mirae Asset
• Edelweiss
• ICICI Prudential
• Axis

Several of these fund houses also run schemes with BSE exposure. However, the specific schemes, and the extent of their exposure to each exchange, differ.

Key Takeaways

• Capital markets index funds and ETFs carry the highest BSE exposure, at around 16.8% to 16.87% of AUM.
• Edelweiss Financial Services Fund leads active sectoral funds at 5.32%.
• ICICI Prudential Midcap Fund tops diversified funds at 3.95%.
• Nifty-linked funds may not add NSE straight away, while BSE index funds and IPO funds could see changes sooner.
• Active financial services funds are likely to consider adding NSE.

Conclusion

BSE remains an important holding across several mutual fund categories, with capital markets funds having the highest exposure. The NSE listing adds another listed exchange to the sector, but its impact on mutual fund portfolios will depend on each fund’s mandate and benchmark changes. For investors, the key is to understand where their fund’s exposure comes from and how portfolio holdings may change over time. Checking the latest portfolio disclosures can help you keep track of these changes.

Disclaimer: Mutual fund investments are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory. Investors are requested to do their own due diligence before investing.

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