October 20, 2022
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Rs 5 lakh crore of mutual funds invested in just 10 stocks
The top 10 most popular stocks among mutual fund managers comprise about 35% of the industry’s equity assets under management. Mutual fund managers have placed heavy bets totalling around Rs 4.75 lakh crore on 10 stocks which includes Nifty heavyweights ICICI Bank, HDFC Bank, Infosys and Reliance Industries.
Top of the list is private lender: ICICI Bank. Domestic fund managers have placed bets worth Rs 1.4 lakh crore on the stock, worth 6.7% of industry’s equity AUM.
The second most popular stock among domestic MFs is India’s largest private sector lender HDFC Bank, on which Rs 1.16 lakh crore is riding. Infosys, on the other hand, is not just the third largest bet but also the only IT stock to feature in the top 10 list. MFs have placed bets worth Rs 90,577 crore.
Together these 3 stocks comprise around 16.5% of industry equity AUM.
Other favorites among the fund managers, include Reliance Industries, SBI, Axis Bank, HDFC, Bharti Airtel, L&T and ITC.
ICICI Bank, HDFC Bank, Infosys, RIL, and Bharti Airtel have featured in the top 10 holdings consistently over the previous 27 months.
Study the pattern of the MF investments
The highest MoM net buying in September was seen in Adani Enterprises (+23.9%), followed by Hero Motocorp (+13.3%), UPL (12.9%), HDFC Life (+12.7%), and Britannia (+11.6%).
If we look at Sectoral trend, the fund managers are the most bullish on private banks as the weightage in the portfolio, stood at 18.2% in September, followed by technology (9.8%), auto (7.8%), NBFC (7.7%) and consumer (7.1%).
On a month-on-month basis, the weights of consumer, healthcare, telecom, PSU banks, retail, and capital goods increased, while the weights of oil, technology, private banks, metals, utilities, insurance, and NBFCs moderated.
Data shows that the weight of healthcare stocks in MF portfolios climbed 30 bps to 6.6% in September, after declining at a 30-month low in August this year.
Mutual funds were bearish on oil and gas stocks as the weight slipped to a six-year low of 6% with a Month on Month decrease of 50 bps.