Bharti Airtel vs Vodafone Idea: Top 5 mutual funds by exposure — could Reliance Jio's listing reshuffle portfolios?

Mutual funds have significant exposure to Bharti Airtel and Vodafone Idea, but the Reliance Jio Platforms IPO and its listing could change how fund managers allocate money across the telecom sector.

Some funds have allocated more than 20% of their portfolios to Bharti Airtel. Jio’s listing could give active fund managers another telecom stock to consider. Here is what investors need to know.

These funds have the highest allocations to Airtel, with weightage expressed as a percentage of AUM. They are sectoral/thematic or passive funds (index funds/ETFs).

*Source: Value Research, Direct Plans, Data as on 30 September 2026

Gaurav Garg, Head of Research at Lemonn, said these funds are likely to move first, potentially trimming Airtel or Reliance Industries to make room for Jio. This could also help thematic funds maintain distinct portfolios from diversified funds, as required by the new rules.

However, passive funds must wait for Jio to enter their respective indices. Garg said Jio could enter the Nifty Next 50 or Nifty 100 around March 2027. Entry into the Nifty 50 and Sensex could come later, potentially at the September 2027 review.

Manish P. Hingar, Chartered Accountant, Founder and Chief Executive Officer of Fintoo, said active funds such as Franklin India Technology and SBI Technology Opportunities can buy Jio after listing if the price looks right, and may sell some Airtel to make room.

However, Piyush Jhunjhunwala, Founder and CEO, Stockify, said the debut of Reliance Jio does not necessarily mean that Airtel will automatically lose weight in portfolios of funds with heft in Airtel stock. Its listing valuation and investment appeal will help determine whether fund managers allocate money to it.

These actively managed schemes have the highest portfolio allocations to Airtel. Hybrid funds dominate the list, while equity funds (large-cap) do not feature among the top five.

Jhunjhunwala said these holdings need to be viewed in the context of each scheme’s strategy. Dynamic asset allocation and equity savings funds adjust equity exposure according to market conditions, while arbitrage funds typically combine cash-market positions with offsetting futures trades. High holdings therefore do not necessarily indicate a strong directional bet on Airtel.

Hingar said large-cap and hybrid funds could consider buying Jio and trimming Airtel after the listing. However, Garg noted that most large active equity funds hold Airtel at or below its benchmark index weight, leaving room to add Jio without necessarily selling Airtel.

“For active equity funds, Reliance Industries is the more likely source of money, since Jio’s listing weakens the case for owning RIL as a proxy for Jio. For active managers, Jio is a reason to sell Reliance before it’s a reason to sell Airtel,” Garg added.

Unlike Bharti Airtel, Vodafone Idea features among the top holdings of hybrid funds rather than sectoral or equity funds.

Garg said all ten of Vi’s largest MF holders are arbitrage funds, with net equity close to zero. He said mutual funds don’t own Vodafone Idea. They rent it for the futures premium, and they’ll hand it back the day the spread dries up.

“Jio’s listing doesn’t change this, because arbitrage funds can’t use Jio until it has futures, likely not before mid-2027,” he added.

Hingar said WhiteOak Capital Equity Savings may hold some without a hedge. Jio won’t change this soon, as it must first enter futures trading.

Garg said, “Airtel is more exposed, but the hit should be modest and slow. It holds nearly all of the active telecom allocation that Jio can now compete for.”

Thematic funds are likely to adjust first, followed by diversified active funds and passive funds as indices change. Hybrid funds may see limited changes, while arbitrage funds are likely to be least affected, he added.

However, Hingar said Vodafone Idea is more likely to be cut from active equity funds, as its finances are weaker. Airtel may be trimmed but is unlikely to be dropped.

Hingar said, “Don’t change your portfolio just because Jio lists; let your fund manager decide. Don’t buy a new fund only to own Jio.”

Jhunjhunwala said investors should monitor index inclusion announcements, changes in scheme holdings and their overall exposure to the telecom and digital sectors. Holding both Jio and Airtel does not automatically mean a portfolio carries excessive risk.

“Investors holding a Nifty fund, a flexi cap fund and a consumption fund should check how much these overlap. They could end up owning Reliance-group telecom three different ways. Jio’s listing is news for fund managers. For investors, it’s a portfolio-overlap check, not a trading signal,” Garg suggested.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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