Latest Mutual Fund Bulk Deals in India for 2025
Mutual funds remain a popular choice for new investors who want to grow their portfolio and secure long-term returns. Expert managers handle these funds and use different strategies to meet specific investment goals. One such strategy is bulk deals, which investors see as a unique and potentially rewarding approach.
In this blog we will explain mutual fund bulk deals. You will learn what they mean, how they work, and the possible benefits and risks they bring. This will give you useful insights for your investment journey.
Top 10 MF Bulk Deals in India
Here are the top 10 MF bulk deals in India:
| Fund Name | Date | Quantity | Buy/Sell | Percentage Traded (%) |
|---|---|---|---|---|
| Sundaram Mutual Fund | 13-01-25 | 213,500 | Sell | 0.74 |
| Kotak Mahindra Mutual Fund | 24-12-24 | 645,677 | Sell | 2.70 |
| Bandhan Mutual Fund | 19-12-24 | 394,885 | Sell | 1.65 |
| Axis Mutual Fund | 19-12-24 | 326,441 | Buy | 0.54 |
| Tata Mutual Fund | 18-12-24 | 1,912,050 | Buy | 1.74 |
| Kotak Mahindra Mutual Fund | 18-12-24 | 956,022 | Buy | 0.87 |
| HSBC Mutual Fund | 18-12-24 | 93,052 | Buy | 0.55 |
| Mahindra Manulife Mutual Fund | 18-12-24 | 86,871 | Buy | 0.51 |
| Nippon India Mutual Fund | 18-12-24 | 1,368,500 | Buy | 2.52% |
| UTI Mutual Fund | 11-12-24 | 491,840 | Buy | 0.69 |
Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.
Note: The data on the top MF bulk deals in India is from 14th January 2025 and is derived from Tickertape Mutual Fund Screener.
🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
What are Mutual Fund Bulk Deals?
Mutual fund bulk deals involve large-scale buying and selling of mutual fund units by institutional investors, high-net-worth individuals (HNIs), or large corporations. These transactions are much larger than the usual trades of retail investors, and they can influence mutual fund pricing and market sentiment.
SEBI defines bulk deals in stocks as trades of at least 0.5% of a company’s total shares. Mutual fund bulk deals do not follow this threshold but remain under regulations that ensure transparency. Once completed, the exchanges report the details of these transactions for public information.
Bulk deals have three main traits, which are their size, urgency, and potential market impact. These deals usually take place in a short time, often during high market volatility or when portfolios need rebalancing.
Key Participants in Mutual Fund Bulk Deals
Bulk deals in mutual funds mainly involve large institutional players and high-net-worth individuals. Retail investors can also feel the impact of these transactions. Let us look at who executes these bulk deals and what their objectives are.
- Institutional Investors as Heavyweights: Institutional investors drive a large part of bulk deal activity in mutual funds. They control substantial capital and often use strategies that involve large purchases or sales of assets. These institutional mutual fund deals typically have a significant impact on the market. Pension funds, insurance companies, and mutual funds themselves are the key participants in such deals, executing transactions that are often beyond the scope of retail investors.
- Pension Funds: Pension funds are prime contributors to mutual fund block deals. They typically invest large sums of money in the latest mutual fund bulk deals, as part of their long-term, diversified strategies. These funds focus on generating steady returns to ensure financial security for their members. Pension funds often seek mutual funds that emphasise fixed-income securities or a balanced mix of equities, aiming for stable growth over time.
- Hedge Funds: Hedge funds adopt a more aggressive approach. They use bulk deals to benefit from short-term market fluctuations or to make major shifts in portfolios. They may execute such deals to lock in gains or protect against losses.
- Insurance Companies: Insurance companies manage large pools of money for their policyholders. They invest in mutual funds to diversify risk. Large transactions allow them to adjust quickly to market changes.
- Foreign Institutional Investors (FIIs): Foreign institutional investors include global investment firms and pension funds. They play a major role in bulk deals, especially in emerging markets such as India. Their interest in Indian mutual funds depends on macroeconomic conditions, regulatory changes, and opportunities in sectors such as infrastructure, technology, and pharmaceuticals.
High-Net-Worth Individuals (HNIs)
HNIs are wealthy individuals who hold substantial capital and invest it actively. They execute bulk deals in mutual funds to gain exposure to new opportunities or to exit existing positions. They usually prefer a personalised approach to investment and focus on high-return and high-risk mutual funds or specialised thematic funds. Bulk deals help them enter or exit a mutual fund quickly without relying on smaller individual transactions.
Fund Managers
Fund managers also conduct bulk deals in the funds they manage. They often do this as part of a broader strategy to rebalance portfolios and adjust exposure to asset classes such as equities or debt securities. A fund manager executes bulk deals mainly to respond to market shifts that may arise from changes in interest rates, government policies, or economic forecasts.
Taxation on Mutual Fund Bulk Deals
Institutional investors, high-net-worth individuals (HNIs), and retail investors need to understand the taxation impact when they engage in mutual fund bulk deals. Taxation rules govern profits and earnings from buying and selling mutual fund units. These rules vary based on the type of mutual fund, the holding period, and the investor’s tax bracket.
The taxation of mutual fund bulk deals falls under capital gains tax with short-term capital gains (STCG), long-term capital gains (LTCG), and dividend impact.
| Tax Category | Details | Tax Rate |
| Short-Term Capital Gains (STCG) | Equity Mutual Funds: Units sold within 3 years from purchase. | 15% (Flat rate, no indexation) |
| Debt Mutual Funds: Units sold within 3 years from purchase. | Taxed as per the individual’s income tax slab rate | |
| Long-Term Capital Gains (LTCG) | Equity Mutual Funds: Units held for more than 3 years. | 10% (Taxable on gains exceeding ₹1 lakh per year) |
| Debt Mutual Funds: Units held for more than 3 years (with indexation). | 20% (With indexation) | |
| Dividend Taxation | Equity Mutual Funds: Dividends paid to investors. | 10% on dividends exceeding ₹5,000 in a financial year |
| Debt Mutual Funds: Dividends paid to investors. | Taxed as per income tax slab rate | |
| Securities Transaction Tax (STT) | Equity Mutual Funds: Tax applied when units are sold on the exchange. | 0.1% on the transaction value |
| Tax on Foreign Institutional Investors (FIIs) | Equity Mutual Funds: LTCG on equity funds (over ₹1 lakh). | 10% (Flat rate) |
| Debt Mutual Funds: LTCG on debt funds (with indexation). | 20% (With indexation) | |
| Institutional Investor Taxation | Pension Funds/Insurance Companies: Tax-exempt under specific conditions. | Varies based on type of fund and jurisdiction |
| Tax on Dividends for Foreign Investors | Equity Mutual Funds: Tax on dividends for foreign investors. | Tax Treaty Rate (Varies by country) |
| Debt Mutual Funds: Tax on dividends for foreign investors. | Tax Treaty Rate (Varies by country) |
How to Invest in Mutual Fund Bulk Deals?
You can easily start to invest in mutual fund bulk deals by following these steps:
- To invest in the mutual fund bulk deals, you can visit a mutual fund investment platform such as smallcase.
- The next step is to research and identify the mutual fund bulk deals that match your financial goals. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode and complete the process.
Impact of Mutual Fund Bulk Deals on Market Sentiment and Prices
Bulk deals directly impact both the price of mutual fund units and overall market sentiment. Large transactions shape investor behaviour and market dynamics in clear ways.
Price Movement and Short-Term Volatility
- Buying Pressure: When institutional investors or HNIs initiate a bulk purchase, they signal confidence in the fund’s future performance. As they buy large quantities of units, the demand increases and pushes the mutual fund’s unit price upward. Other investors may also buy, expecting continued growth, which strengthens the price rise.
- Selling Pressure: When large investors sell in bulk, they create downward pressure on the fund’s unit price. If they exit under adverse market conditions, the decision often triggers a ripple effect. Retail investors may follow and sell their holdings, which adds to the decline.
- Market Reactions: Bulk deals often trigger sharp market reactions when they involve a large portion of a mutual fund’s assets. In smaller funds with lower liquidity, bulk transactions create significant price fluctuations. Larger liquid funds usually absorb bulk transactions with less impact on unit prices.
Long Term Impact on Sentiment
Bulk deals influence market sentiment beyond immediate price movement.
For example: A large institutional buy shows that major investors feel bullish about the sector or investment theme the fund focuses on, such as infrastructure or technology.
A significant sell off shows that institutional investors lose confidence in the fund’s management or its underlying assets. This signals to retail investors that they may need to reconsider their positions.
Regulatory Transparency and Reporting of Bulk Deals
Regulators monitor mutual fund bulk deals to maintain transparency and ensure fairness in the market. They prevent manipulation and give investors access to accurate information about large-scale transactions.
SEBI Regulations for Bulk Deals
In India, SEBI requires mutual funds to disclose transactions that involve at least 0.5% of the total outstanding units of a fund. This rule keeps the market transparent and ensures that all investors, including retail investors, know about significant changes in the ownership structure of a mutual fund.
These regulatory requirements provide several benefits:
- Public Awareness: Investors get to know when large institutional players are buying or selling units in a fund. This can help retail investors make informed decisions based on trends observed from these large deals.
- Transparency and Fairness: By making bulk deals public, SEBI ensures that smaller investors have the same access to information as large institutional players. This level playing field is crucial in preventing market manipulation and insider trading.
Reporting Framework
Once a bulk deal is completed, the exchange typically provides the following details:
- The number of units traded.
- The price per unit at which the transaction occurred.
- The identity of the buyer or seller (institutional investors or brokers involved in the deal, although names may be anonymized in certain cases).
These disclosures help investors understand the reasons behind significant market movements and whether these deals reflect broader market trends or isolated events.
Risks and Challenges Associated with Mutual Fund Bulk Deals
Bulk deals offer opportunities but also carry significant risks. Investors need to understand these risks, whether they are institutional or retail participants.
- Market Volatility: Large transactions often increase volatility in mutual fund prices, especially when deals occur unexpectedly or without clear market signals. Prices can swing rapidly and may not reflect the actual fundamentals of the underlying assets. This sudden movement can confuse investors and create uncertainty.
- Liquidity Challenges: In smaller mutual funds, bulk deals often create liquidity issues. When the market for a fund lacks depth, executing large bulk mutual fund trades becomes difficult without affecting the price. Investors may then face higher execution costs on both buying and selling sides.
- Potential for Market Manipulation: Groups of investors can use bulk deals to influence mutual fund prices. A series of timed transactions can inflate or depress prices, creating a misleading sense of demand or weakness. To prevent such practices, SEBI monitors bulk deals closely and enforces transparency in the market.
To Wrap Up…
Mutual fund bulk deals significantly impact how mutual fund prices move in both the short and long term. Big players like institutional investors, wealthy individuals, and fund managers often participate in mutual fund institutional trading, making these deals to adjust their portfolios, capitalise on market swings, or change sector exposure. By tracking these large transactions, investors can gain valuable MF investor activity insights, helping them spot market trends and better understand investor sentiment.
Bulk deals are crucial in shaping market dynamics, influencing price movements and trading volumes. However, they come with risks, such as price volatility, liquidity concerns, and the potential for market manipulation. As such, it’s important to monitor these large trades closely and assess their potential implications on the broader market, using MF investor activity insights to gauge the overall investor mood and sentiment.
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Frequently Asked Questions (FAQs) on Mutual Fund Bulk Deals
Mutual funds buy or sell a large number of shares or units from a company or a mutual fund scheme in one go. This works like a heavyweight move in investing.
Bulk deals give mutual fund investors a cost-effective and fast way to complete transactions. They add efficiency and savings, which can benefit novice investors.
Mutual funds follow rules and regulations when they conduct large transactions. They must report their trades quickly to both the stock exchange and the regulatory authorities, such as SEBI.
Mutual fund managers handle risks linked to large transactions. These risks can increase exposure to company-specific issues like market and operational uncertainties.
A bulk deal occurs when an investor purchases or sells over 0.5% of a publicly traded company’s shares on a stock exchange. This 0.5% threshold can be reached through one or multiple trades in a single trading day. It’s a significant move that can impact a company’s stock and is essential for newbie investors to grasp.
