India's Biggest Equity Fund Buys AI-Hit IT Stocks in Contrarian Bet

PPFAS Mutual Fund's $14.9 billion Flexi Cap Fund, the largest actively managed equity fund in India, is making a contrarian bet by buying up the nation's beaten-down IT services stocks even as investors fret over generative AI's impact on the outsourcing industry. Bloomberg reported on June 23, 2026. According to Rajeev Thakkar, the fund's CIO for equities, the fund has expanded its exposure to IT services firms over the past three months (March to May 2026), snapping up shares whose valuations had fallen amid the slump (Bloomberg). It has also shifted cash held in bonds and money-market instruments into equities, while adding to financial, utility and coal-mining holdings.