Auto stocks catch Fund Managers’ fancy
The auto sector stocks have raced to the top of the mutual fund return charts over the last 12 months.
Stocks in the automobile sector have impressive trend over the last few months and the BSE Auto index hit an all-time high on July 22, driven by a strong demand outlook. The NAV of the UTI Transportation and Logistics Fund, the only scheme that invests majorly in auto sector stocks, has inched up notably and outperformed all other equity fund categories over the last 12 months.
Experts attribute global and domestic factors to this performance. When the broader market corrected this March, it turned positive for the sector due to factors benefiting the domestic automobile space. These factors include expectations of improving demand, easing supply-chain constraints and correction in steel prices due to the imposition of export duty. New models launched by many larger players also drove the turnaround
Lets have a look at the top auto sector stocks which were added to the portfolios of actively managed equity mutual funds over the last three months.
1)Mahindra & Mahindra
Number of schemes that added the stock: 65
Total number of schemes holding the stock: 193
2) Maruti Suzuki India
Number of schemes that added the stock: 37
Total number of schemes holding the stock: 240
3) TVS Motor Company
Number of schemes that added the stock: 28
Total number of schemes holding the stock: 94
4) Tata Motors
Number of schemes that added the stock: 23
Total number of schemes holding the stock: 163
5) Hero MotoCorp
Number of schemes that added the stock: 21
Total number of schemes holding the stock: 86
6) Escorts Kubota
Number of schemes that added the stock: 20
Total number of schemes holding the stock: 42
The other stocks which have been picked up by the fund managers include : eicher Motors, Uno Minda, Tube Investments, Endurance Technologies, ZF Commercial Vehicle Control Systems India & Bosch.
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