Investors may want to know, which are the most popular shares in India. One way to gauge that is to study the holding of mutual funds. Here are a list of top 7 best shares that mutual funds hold in India. Most of them are from the Sensex or Nifty companies and the list hardly throws any surprises.

1) HDFC Bank

HDFC Bank tops the list of holding in almost all of the mutual fund schemes. The one reason for this has been the consistent growth the bank has seen in the last several years of operation. The second is that as compared to peers the bank has the lowest non performing assets. The Bank's growth and very low levels of non performing assets make it the most preferred bet not only for mutual funds, but, also for domestic financial institutions and foreign portfolio investors. The following mutual funds hold the shares of HDFC Bank:

1) Axis Equity
2) Birla Sun Life Equity
3) BNP Paribas Equity
4) Birla Sun Life Top 100
5) SBI Blue Chip
6) ICICI Prudential Focussed fund

This is just a select list and most of the top large cap mutual funds in India hold the shares of HDFC Bank.

2) Infosys

Infosys is another share that finds its place in most of the holdings of the top mutual funds in India. The company's consistent track record has pushed it among the top best shares that mutual funds holds in India. While Infosys had always been at the number one position of late, it has slipped on account of almost flat growth rates in the last few quarters.

3) Maruti Suzuki

Until a few years ago, Maruti hardly featured in the top 5 list. We are now increasingly seeing Maruti in the top 5, because of the whopping growth that the company has seen in the last few years. It is likely to stay there unless growth starts to taper off.

4) ICICI Bank

ICICI Bank also finds itself prominently in the list of top 7 holdings of mutual funds in India. However, the stock has not given great returns for most mutual funds in the last one year, as it has fallen sharply on account of non performing asset worries.

5) Reliance Industries

Reliance Industries is now being increasingly bought by mutual funds. The stocks is among the few Sensex stocks that has managed to generate positive returns in the last one year. Optimism over the company's capex plans, launch of Jio and brighter prospects in the retail business has boosted the stock.

6) Larsen and Toubro

Larsen and Toubro is another stock that prominently finds its way in the holdings of mutual funds. The company has these days lost its favourite tag, as growth seems to have faltered. The company also gets a significant portion of its revenues from the Middle East, which is likely to slowdown, due to a slump in oil prices.

7) State Bank of India

State Bank of India is also among the top 7 best shares that mutual funds hold in India. However, the shares have not given the best of returns in the last one year for investors. A rise in non performing assets may the one one reason for worry for most fund managers holding this stock.

Conclusion

Mutual funds most preferred bet is HDFC Bank, while all of the above 7 feature somewhere in their list of holdings. Metal stocks are a complete no as far as mutual funds are concerned.

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