If you're a mutual fund investor, you may have felt a sudden jolt this week—and it’s got everything to do with a familiar name: Paytm.
On June 12, 2025, shares of One 97 Communications Ltd (Paytm’s parent company) crashed nearly 10%, following the Finance Ministry’s strong rejection of MDR (Merchant Discount Rate) on UPI transactions. What seemed like a potential revenue source for fintechs has now been flatly ruled out.
But here's the thing—this isn’t just about Paytm’s stock.
This is about your mutual fund portfolio.
🧾 Do You Hold These Funds? Then You Hold Paytm Too.
A number of well-known AMCs (Asset Management Companies) hold sizable positions in One 97 Communications. Let’s break it down:
💼 Mirae Asset Mutual Funds – Total Exposure: ₹1,833.3 Crores
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Mirae Asset Large Cap Fund – ₹482.26 Cr
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Mirae Asset Large & Midcap Fund – ₹472.49 Cr
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Mirae Asset Focused Fund – ₹358.02 Cr
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Mirae Asset Mid Cap Fund – ₹285.18 Cr
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Mirae Asset ELSS Tax Saver Fund – ₹235.35 Cr
📊 Motilal Oswal Mutual Funds – Total Exposure: ₹1,072.31 Crores
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Motilal Oswal Midcap Fund – ₹1,072.31 Cr
📈 Nippon India Mutual Funds – Total Exposure: ₹687.7 Crores
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Nippon India Growth Fund – ₹433.63 Cr
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Nippon India Multi Cap Fund – ₹253.64 Cr
🚨 What Does This Mean for You?
Paytm’s sharp decline—triggered by regulatory pushback on monetizing UPI payments—may negatively impact NAVs of these funds, at least in the short term. Here's why this matters:
📉 NAV Dips in the Short Term
When a single stock drops ~10% in a day and a fund holds hundreds of crores in that company, the impact on Net Asset Value (NAV) is real, especially in concentrated portfolios.
📊 Sector Risk
This also highlights the risks of fintech and digital payments exposure. Regulatory uncertainty can flip the narrative overnight.
🕵️♂️ Time to Review Your Allocation?
It doesn’t mean these funds are “bad.” In fact, many of them are top performers. But it’s worth asking:
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Am I okay with this level of sector exposure?
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Is my portfolio too concentrated in a few stocks?
📌 Final Thoughts: Don’t Panic—But Stay Aware
Markets fluctuate. Stocks dip. Policies change.
But informed investors stay ahead of the curve.
If your SIPs or lumpsum investments are in the funds mentioned above, it’s time to have a quick review with your financial advisor. Not necessarily to exit—but to reassess.
👉 After all, your mutual fund portfolio isn’t just about the AMC—it’s about what’s inside.
🧠Pro Tip:
Use fund fact sheets or platforms like Value Research / Morningstar to view latest portfolio holdings. Paytm isn’t the only high-volatility stock in the mix.
Absolutely! Here's an FAQ section you can add to the end of the blog to address common investor concerns in a clear, informative manner:
❓ Frequently Asked Questions (FAQ)
🔹 Q1: Should I exit the mutual fund if it holds Paytm stock?
A: Not necessarily. A single stock—even with a large allocation—doesn't define an entire fund's long-term performance. However, if you're uncomfortable with the volatility or sector exposure, consider reviewing your asset allocation with a qualified advisor.
🔹 Q2: How much impact will Paytm's stock crash have on my fund's NAV?
A: It depends on the fund and its exposure. For example, Motilal Oswal Midcap Fund has over ₹1,000 crore in Paytm, which could lead to a more visible impact on NAV. In diversified funds like Mirae Asset Large Cap, the effect may be less severe due to broader holdings.
🔹 Q3: Is this just a temporary dip or a long-term concern?
A: The stock dropped due to regulatory clarity on UPI monetization. While this may pressure Paytm's revenue in the short term, the long-term outlook depends on how the company adapts its business model. Fund managers may reassess their exposure accordingly.
🔹 Q4: Are fund managers likely to reduce exposure to Paytm?
A: Fund managers actively monitor stocks and can rebalance if fundamentals weaken. However, they may also hold if they believe the dip is temporary or already priced in. You’ll see such changes reflected in the next portfolio disclosure.
🔹 Q5: What should I do as an investor?
A: Stay calm and focused on your financial goals. Short-term news shouldn't derail long-term plans. If you're unsure, consult your financial advisor to evaluate whether your portfolio still aligns with your risk profile and objectives.
🔹 Q6: How can I track which stocks my mutual fund holds?
A: You can check fund portfolios on AMC websites, or platforms like:
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Value Research Online
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Morningstar India
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Moneycontrol Mutual Funds
