Many retail investors, who do not have the knowledge or time to arrive at stock ideas, track large players and institutions to know the stocks in action.
With the Indian mutual fund industry has been massively expanding, there is perceptible interest among investors in knowing how marquee MF fund managers are investing, especially the stocks they bought/sold, preferred sectors, etc. Here are all the details regarding MF portfolio activity for August 2022.
Top stocks bought, sold across AMCs
Fund managers usually choose large-cap companies with well-established businesses that are in operation for a longer period of time and are well positioned to absorb business pressures across various market cycles. Mid cap stocks appear in the middle of the risk spectrum, while small cap stocks are at the extreme, promising a concoction of high risk-high return.
Not just funds that have the express mandate to buy exclusively large cap, midcap and/or small cap stocks, a variety of others across equity and hybrid categories also buy them.
The following table shows the hot stocks (Sona BLW, NTPC, Kotak Mahindra Bank, etc.) and cold stocks (Reliance Industries, Bharti Airtel, Infosys, etc.) of the MF universe for this particular month. The 'hot'/'cold' quotient of a stock is based on the number of shares bought/sold on a month-on-month basis.
Next is the table capturing the top ‘cold’ stocks that saw selling activity across the MF universe.
For those interested in granular data in terms of large cap, mid cap and small cap stock additions and deletions, check out the following lists and data points.
Note that the companies are based on stocks added or reduced for three consecutive months.
Large cap: Key additions were HDFC Bank, Bajaj Finance, Kotak Mahindra Bank, Adani Total Gas, and Asian Paints. Key reductions were LIC, Adani Enterprises, L&T, Power Grid, and SBI Life Insurance.
Mid cap: Key additions were Alkem Labs, IDBI Bank, Yes Bank, Indian Hotels, and AU Small Finance Bank. Key reductions were Jindal Steel & Power, L&T Tech, Voltas, Aurobindo Pharma, and Linde India.
Small cap: Key additions were Krishna Institute of Medical Science, Alok Industries, V-Guard, Redington, and NLC India. Key reductions were Century Textiles, UTI AMC, Quess Corp., VIP Industries, and Balrampur Chini.
Five most preferred sectors across top AMCs
The sectoral positioning of different funds varies. But at each fund house level, the aggregate sectoral positioning can give signs of how all the funds of the AMC are operating in the market.
To better understand this, below are three tables that compare Nifty 200 preferred sectoral weights to individual AMC sectoral weights. To make it convenient, we have given only the five most preferred sectors across top AMCs. This serves as an easy indicator in terms of relative bullishness or bearishness that a particular AMC has on a sector vis-a-vis the Nifty 200.
The table below compares Nifty 200 sectors vis a vis ABSL MF, Axis MF and DSP MF.
The table below compares Nifty 200 sectors vis-a-vis HDFC MF, ICICI Pru MF and Kotak MF.
The table below compares Nifty 200 sectors vis-a-vis Nippon MF, SBI MF and UTI MF.