Reliance Jio Platforms: Should mutual fund investors watch for overlapping exposure to RIL or Bharti Airtel? Decoded

Reliance Industries-backed Jio Platforms was successfully listed on 28 October. But for mutual fund investors, this raises one key question to watch: portfolio overlap involving Reliance Industries or Bharti Airtel.

Portfolio overlap in mutual funds occurs when two or more schemes invest in the same underlying stocks. While all three are different stocks, Jio is a subsidiary of Reliance Industries, while Airtel is Jio’s competitor in the telecom sector.

Both RIL and Airtel are already part of some mutual fund portfolios, and Jio’s listing could add another layer of exposure as fund managers explore the stock. Here’s what experts have to say about the portfolio overlap risk involving RIL–Jio or Airtel–Jio, and what investors should do.

Gaurav Garg, Head of Research at Lemonn, said mutual fund holdings in both Reliance (RIL) and Jio could create concentration within the same corporate group, while holding Airtel and Jio could increase exposure to the telecom and digital connectivity sector.

Vedant Gupte, Co-founder and CEO of investment platform Trackk, said RIL–Jio is the key overlap to watch in mutual fund portfolios. Reliance still owns the majority of Jio, so holding both means owning the same telecom cash flows twice: once through the parent and once directly.

In contrast, Airtel–Jio represents sector concentration rather than direct duplication. Both move on tariffs, spectrum, and regulation, so owning both heavily is a big bet on Indian telecom. As they compete for the same subscribers, some of that risk cancels out, he added.

As RIL and Airtel are large-cap stocks, both are already present in Nifty 50 index funds and many active large-cap funds.

Reliance Industries accounted for 7.58% of the Nifty 50, while Airtel had a 5.10% weight in Nifty 50 as of 30 September 2026. This means funds tracking the index already have both stocks in their portfolios.

Among active large-cap funds, ICICI Prudential Large Cap Fund is the largest by AUM and has 5.46% of its assets in Reliance and 4.21% in Airtel.

Gupte said active large-cap funds are where the overlap shows up first. But SEBI’s single-stock limits on active mutual funds at 10% of net assets remain a built-in guardrail.

Index funds will buy Jio only once it enters their respective indices. Since only a small slice of Jio’s equity is listed, its free-float weight should start modest. This means passive investors get a measured entry, not a sudden jolt, he added.

Garg added that passive funds tracking the Nifty 50 and Nifty 500 could see increased concentration in telecom and digital businesses due to their existing exposure to Reliance and Airtel.

Domestic mutual funds were allotted shares of Jio Platforms across 95 schemes through its anchor book. The top schemes include SBI Focused Fund, HDFC Flexi Cap Fund, HDFC Large Cap Fund and Nippon India Multi Cap Fund, among others.

Half the anchor shares are locked in for 30 days and the remaining half for 90 days from the date of allotment. Once these periods end, fund managers can decide whether to hold, sell, or increase their exposure. This means these schemes also need to be considered.

Gupte said investors worried about concentration risk can consider these mutual fund categories:

• Small-cap funds, since all three stocks are large caps.
• Mid-cap funds are relatively insulated, with limited room for large-cap holdings.
• Equal-weight index funds neutralise concentration by capping every stock at the same weight.
• Sector funds outside telecom and energy, such as banking, pharma, IT or consumption, avoid the theme.
• International, gold, and debt funds are natural diversifiers with no exposure to it.

Garg cautioned that investors should not assume any fund category is automatically insulated. The more relevant consideration is the actual portfolio composition, including sector allocation and exposure to individual companies.

Garg said investors should look beyond individual scheme holdings and assess their aggregate exposure to RIL, Airtel, and Jio across all their mutual fund and direct share portfolios.

Gupte said investors should check their overall exposure to the corporate group and the telecom sector, and whether two of their funds have nearly identical top holdings.

Funds publish their month-end portfolios in the first half of November, and the October disclosures will show which of their active funds actually bought Jio. That is the first real data point. The second is when Jio enters the major indices, because that's when passive funds start buying, he added.

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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