How HDFC Bank and HDFC stocks turned MF's favourites over the last 15 years: Explained in bar chart race

Both Banking and Financial services have been the preferred sectors for mutual funds, accounting for a combined share of more than one-fourth of the industry’s equity AUM. The housing finance behemoth HDFC and the banking major HDFC Bank have been part of the top 10 holdings of many equity-oriented mutual fund schemes which helped multiply unitholders’ wealth over the years. Believing in the long-term growth story of these companies, many fund managers have continued holding these stocks in their portfolios, irrespective of the market gyrations. As per the latest data, the overall mutual fund industry has held about Rs 1,01,784 crore of the investment in HDFC Bank while Rs 45,403 crore in HDFC Ltd. The following charts exhibit how both the companies became the mutual funds’ favourite over the last 15 years.