ITC shares form a significant part of at least five mutual fund schemes, with allocations exceeding 5% as of June 30, 2026. These funds have shown varied performance, with strong long-term growth for some, while others faced challenges in shorter periods. On August 3, 2026, ITC shares climbed over 4% in early trading, even as the company reported a decline in its first-quarter profit for fiscal year 2027.[upstox]
ITC's Prominent Portfolio Presence
Several mutual fund schemes actively invest in ITC shares, which are widely tracked by fund managers. As of June 30, 2026, five specific schemes had more than 5% of their portfolios allocated to the fast-moving consumer goods (FMCG) giant. These include the ICICI Pru FMCG Fund, Bank of India Consumption Fund, Sundaram Consumption Fund, Parag Parikh Flexi Cap Fund, and Parag Parikh ELSS Tax Saver Fund.[upstox+1]
The ICICI Pru FMCG Fund held the highest allocation to ITC at 18.34% of its portfolio. ITC was the second-largest holding in this fund, just behind Hindustan Unilever.The Bank of India Consumption Fund allocated 7.71% to ITC, making it the second-largest holding after Bharti Airtel.Sundaram Consumption Fund saw 5.63% of its assets in ITC shares.Meanwhile, Parag Parikh Flexi Cap Fund and Parag Parikh ELSS Tax Saver Fund had 6.07% and 5.29% allocations to ITC, respectively.[upstox+7]
Collectively, mutual funds held approximately 195 crore shares of ITC, valued at ₹78,952.33 crore, as of November 2025. This highlights ITC's substantial presence across the broader mutual fund landscape.[angelone]
Performance Highlights Across Funds
The performance of these five funds, measured by compounded annual growth rate (CAGR) since inception until July 31, 2026, shows a mixed picture. Parag Parikh Flexi Cap Fund delivered the highest since-inception CAGR at 18.32%. This fund, launched in May 2013, also returned 13.68% over five years and 14.31% over three years. However, its shorter-term performance was lower, with a -0.12% return in one year and -1.57% over six months. The fund’s portfolio is largely focused on large-cap companies, with 65.36% allocated to them. Itssector exposure includes 21.47% in banks, 8.93% in IT, and 7.02% in FMCG.[upstox+4]
Parag Parikh ELSS Tax Saver Fund, launched in July 2019, also showed strong long-term growth with an 18.17% CAGR since inception. It returned 13.34% over five years and three years. However, its one-year return stood at -5.45%, and it saw a -3.21% decline over six months. This fund primarily invests in large-cap stocks, accounting for 69.02% of its portfolio. Keysector allocations include 21.33% in banks, 11.96% in finance, and 10.7% in IT.[indiaipo+7]
The Sundaram Consumption Fund, launched in January 2013, achieved a 14.14% CAGR since its inception. It delivered 12.73% over five years and 11.6% over three years. Similar to other funds, its one-year return was negative at -1.29%, though it posted positive returns of 5.32% over six months and 6.23% over three months. Thefund's portfolio is dominated by large-cap companies, making up 72.3% of its holdings, and has a significant 24.83% allocation to FMCG stocks.[indiaipo+6]
ICICI Pru FMCG Fund, also launched in January 2013, recorded an 11.41% CAGR since its inception. Over five years, it returned 8.09%. However, its recent performance has been weaker, with returns of -12.31% in one year, -1.58% in three years, -4.17% in six months, and -2.7% in three months. This fund has a strong large-cap bias, with 70.32% in large-cap stocks, and a high concentration in FMCG at 72.11%.[indiaipo+6]
The Bank of India Consumption Fund is a newer entrant, launched in December 2024. It has delivered an 8.59% CAGR since its inception. Itsone-year return was 6.13%, with 9.49% over six months, but it saw a -7.43% return in three months. This fund has a more diversified market capitalization spread, with 41.81% in large-cap, 27.82% in mid-cap, and 27.74% in small-cap stocks. Itssector allocations include 20.51% in FMCG and 15.33% in automobile and ancillaries.[indiaipo+7]
Market Dynamics and Regulatory Impact
ITC shares have experienced significant market movements, reflecting both company-specific news and broader regulatory changes. On August 3, 2026, ITC shares saw a notable surge, gaining over 4% in early trading. This occurred despite the company reporting a decline in its first-quarter profit for the current fiscal year (Q1FY27).[upstox]
Earlier, on January 1, 2026, ITC shares faced a sharp sell-off, declining nearly 10% during the session. This drop followed an announcement from the Finance Ministry regarding new excise duties on tobacco products, set to take effect from February 1. Themarket reacted negatively to concerns about higher taxation and its potential impact on cigarette volumes and profitability. This event highlighted the stock's sensitivity to regulatory changes affecting the tobacco sector.[upstox+3]
Mutual funds, as a whole, have shown some adjustments in their ITC holdings. While they remain significant investors, data for June 2026 showed that mutual funds collectively slightly decreased their holdings compared to previous periods. This indicates ongoing evaluation by fund managers in response to market conditions and company performance.[angelone+1]
Investors tracking these mutual funds must consider both the long-term track record and recent market events impacting ITC. The company's diverse business segments, including FMCG, hotels, and paperboards, alongside its traditional tobacco business, contribute to its overall market dynamics. The mixed performance across funds holding ITC shares underscores the importance of a comprehensive review of fund objectives, portfolio allocations, and market conditions.
