Mutual funds increased their stock exposure to 1,244 companies in October, marking the fifth consecutive month of portfolio expansion. The rise reflected wider participation across mid-cap and small-cap segments. Fund managers added holdings in diversified sectors including manufacturing, financial services, and healthcare. The broadened exposure coincided with higher SIP flows and active rebalancing across categories, contributing to wider market coverage.

Mahindra Manulife Mutual Fund introduced the Income Plus Arbitrage Active FOF, aiming for risk-managed returns through a mix of debt and arbitrage strategies. The scheme follows a 24-month horizon and allocates dynamically across fixed-income instruments and equity arbitrage positions. The fund expands the AMC’s hybrid offerings and targets investors seeking lower-volatility exposures within regulated asset classes.