Mutual Fund Holding is calculated as the sum of shares held by the entire universe of equity mutual funds divided by the total shares outstanding of the company. Examples of equity mutual funds are Reliance Small Cap fund which is from the Reliance AMC; HDFC Equity fund, which is from the HDFC AMC, etc.

Mutual funds have superior research capabilities and perform extensive analysis about the company before investing in it. A high mutual fund stake in a company is considered to be an endorsement about the company’s prospect.