Shares of Paytm continue to face a downward spiral as they locked in another lower circuit of 20% on Friday, February 2, following a 20% drop on Thursday. As uncertainty looms over Paytm's stock, mutual fund investors may wish to see if their schemes include this entity, even if they don't directly own Paytm shares.
As per data provided by RupeeVest, an online investment and research platform, a total of 68 mutual fund schemes held shares worth ₹1,995 crore in Paytm as of December 31, 2023.
This exposure represents an increase of 77% between September and December 2023.
Notable fund houses such as Mirae Asset MF, Quant MF, and Nippon India MF added Paytm shares in December, adding to the overall exposure.
Data from BSE indicated that 23 mutual funds cumulatively owned a 4.99% stake in Paytm in December 2023, compared to 19 funds that held a 2.79% stake previously.
The breakdown of mutual fund exposure further reveals a disparity between active and passive funds.
Active funds demonstrate a higher allocation to Paytm, with notable funds such as UTI Innovation Fund leading the pack with a 4.8% exposure, followed by Quant Teck Fund (3.26%) and Quant Mid Cap Fund (3.17%), as per RupeeVest.
Passive funds, while having exposure, exhibit relatively lower allocations.
As of December 31, 2023, passive funds such as Tata Nifty India Digital ETF and Kotak Nifty Alpha 50 ETF have exposures of 2.89% and 2% respectively.
Similarly, the Bandhan Nifty Alpha 50 Index and Motilal S&P BSE Financial have exposures of 1.94% and 1.76% respectively.
A look at major mutual funds with maximum exposure to Paytm:
| Fund Name | Exposure (%) |
| Active Funds with Highest Exposure | |
| UTI Innovation Fund | 4.8% |
| Quant Teck Fund | 3.26% |
| Quant Mid Cap Fund | 3.17% |
| Nippon Innovation Fund | 2.96% |
| Mirae Focused Fund | 2.9% |
| Helios Flexi Cap Fund | 1.95% |
| Motilal Focused | 1.57% |
| Passive Funds with Highest Exposure | |
| Tata Nifty India Digital ETF | 2.89% |
| Kotak Nifty Alpha 50 ETF | 2% |
| Bandhan Nifty Alpha 50 Index | 1.94% |
| Motilal S&P BSE Financial | 1.76% |
(Source: RupeeVest)
This comes at a time when Reserve Bank of India (RBI) has ordered Paytm Payments Bank, an associate of One 97 Communications Limited (OCL), to stop accepting fresh deposits or further credit transactions or top-ups in any customer accounts from March 1.
The company mentioned in the filings that, it expects this action to have a worst-case impact of ₹300-500 crores on its annual EBITDA going forward, but anticipates continuing on its trajectory to improve its profitability.
Paytm founder Vijay Shekhar Sharma remains optimistic, referring to the RBI's move as a "speed bump" and expressing confidence in overcoming challenges through partnerships with other banks.
(Edited by : Amrita)
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