In January, mutual funds maintained their purchasing of Paytm shares, with only a handful of exceptions.

As of January 2024, mutual funds demonstrated continued interest in Paytm, with notable increases in shareholding despite subsequent market turbulence. According to data analyzed by Fisdom Research, the mutual fund industry's stake in Paytm surged by 41% from December 2023 to January 2024, prior to a significant downturn.

The top three mutual funds in terms of share count were Nippon Mutual Fund, Mirae Mutual Fund, and Motilal Oswal Mutual Fund, all holding substantial positions in Paytm at the beginning of the year. However, amidst the market volatility following operational restrictions imposed by the Reserve Bank of India on Paytm Payments Bank Ltd. (PPBL) at the end of January, the stock price plummeted by 55% on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Despite the overall increase in mutual fund exposure to Paytm, there were noteworthy shifts within the industry. Baroda BNP Paribas and Navi MF emerged as new entrants to Paytm in January 2024 through actively managed funds, while HSBC AMC completely divested from the stock during the same period. Quant Mutual Fund notably reduced its exposure by 72.4%, while Aditya Birla Sunlife MF decreased its exposure by 10%.

Additionally, several prominent mutual funds, including SBI Mutual Fund, Edelweiss Mutual Fund, Kotak Mutual Fund, TATA Mutual Fund, ICICI Mutual Fund, Bandhan Mutual Fund, and Grow Mutual Fund, remained relatively inactive in terms of their exposure to Paytm. However, despite the market challenges, the number of schemes holding Paytm in their portfolios increased from 70 to 77 during January 2024.

Overall, the mutual fund industry's exposure to Paytm amounted to approximately Rs. 3,384 Crore, indicating sustained interest despite the recent volatility and regulatory concerns surrounding the company.