Most shunned popular index stocks by active fund managers

Fund managers of actively managed mutual fund schemes prioritize companies with strong financials, healthy growth prospects, and attractive valuations when selecting stocks. Despite inclusion in major indices, managers often underweight or avoid certain constituents through strategic positioning. Among Nifty 50 stocks, HDFC Bank remains the most favoured, held by 457 active equity funds, while Adani Enterprises is held by only 32 active funds as of May 2025. Fund managers typically avoid stocks with weak fundamentals, governance concerns, or cyclical headwinds. Additionally, sector rotation strategies and valuation concerns drive selective stock picking. Here are the most avoided stocks across the large-, mid-, and small-cap indices: