What did the big 10 fund houses bought and sold in September 2023?

13 Oct 2023 , 10:02 AM

Why we are looking closely only at the leaders

It is OK to look at mutual fund portfolio shifts at a broad level of the industry. But what also matters is what individual fund houses and fund managers are doing. Most fund managers have a personal influence on the markets and the stock sentiments. This is especially true of fund managers in large funds. At the current juncture, India has more than 43 active AMCs and this number is growing on a regular basis. It would be well-nigh impossible to look at the buying and selling actions of all these 43 AMCs; and it may actually be redundant. However, a fairly representative picture would emerge if one looks at the top 10 AMCs by equity fund AUM. As per quick estimates, these top 10 funds by equity AUM would cover more than 90% of the equity AUM and over 85% of all the churn being done by mutual funds in Indian equities. That answers the question on why to look at the leaders.

Obviously, the top-10 is dominated by the bancassurance plays; which are essentially the mutual funds that are backed by banks. These bank-backed funds account for half of the top 10 by equity AUM. Here we evaluate the shifts in their equity portfolio at 2 levels. At the first level, we look at the large cap stocks which the fund purchased, sold or even the stocks where these funds were neutral during the month of September 2023. At the second level, we check the most preferred stocks of each fund house from an alpha perspective. These are size agnostic, and would typically be small cap or mid-cap stocks. This gives a single view dashboard of the large caps that these funds are churning as well as the stocks where they are doing alpha hunting. Alpha hunting can mean fresh additions or pure accretion.

SBI Mutual Fund: equity portfolio churn in September 2023

Let us first look at the shares that SBI Mutual Fund bought in the month of September 2023, across all market cap classes but predominantly large caps. In terms of MOM percentage increase, SBI MF added to its positions in HDFC Bank, ICICI Bank and Infosys Ltd. To a lesser extent, the SBI MF also added to its positions in Reliance Industries Ltd. Surprisingly, SBI was neutral on two stocks viz ITC Ltd and Tata Consultancy Services (TCS).

SBI MF cut its stakes in several stocks and this list included, Larsen & Toubro (L&T), State Bank of India (SBI), Bajaj Finance Ltd and Bharti Airtel Ltd. The fund’s top 5 stock picks for September 2023 in terms of percentage accretion in holdings include smart additions to stocks like Jupiter Life Hospitals Ltd, Vodafone Idea, Trent Ltd, Jubilant Foodworks and RBL Bank Ltd. It made small fresh additions to VRL Logistics and Whirlpool of India in Sep-23.

ICICI Prudential Mutual Fund: equity portfolio churn in September 2023

Let us turn to the large cap shares that ICICI Prudential Mutual Fund bought in September 2023. In terms of MOM percentage increase, ICICI Prudential Mutual Fund added to its positions substantially in HDFC Bank, ICICI Bank and Sun Pharma. It also added to its positions in Reliance Industries Ltd and Infosys Ltd. ICICI Prudential Mutual Fund did not stay neutral on any of the frontline stocks in September 2023.

There were several stocks in which ICICI Prudential MF cut positions. They cut positions very aggressively in five stocks viz. Larsen & Toubro, Maruti Suzuki Ltd, Axis Bank Ltd, NTPC Ltd and Bharti Airtel Ltd during the month of September 2023. The fund’s top 5 stock picks for September 2023 included additions to stocks like Navin Fluorine, HDFC Life Insurance Ltd, Shriram Finance Ltd, Bosch Ltd and Gujarat State Petronet Ltd (GSPL).

HDFC Mutual Fund: equity portfolio churn in September 2023

Let us first look at the shares that HDFC Mutual Fund bought in September 2023, mainly  in the large cap space. In terms of MOM percentage increase, HDFC Mutual Fund added to its positions very aggressively in Reliance Industries Ltd and Axis Bank Ltd. It also added to its positions in ICICI Bank, HDFC Bank, Infosys Ltd, Bharti Airtel and ITC Ltd. However, HDFC Mutual Fund chose to be neutral on NTPC Ltd, just like in the previous month.

On the sell side, HDFC mutual Fund sharply cut positions in stocks Larsen & Toubro but was not a significant seller in any other stock. The fund’s top 5 stock picks for September 2023 based on percentage increase in holdings included fresh addition of Aditya Vision Ltd and Blue Star Ltd as well as enhancement of stake in stocks like Five Star Business Finance Ltd, Havells Ltd and Adani Ports and Special Economic Zone Ltd. 

Nippon India Mutual Fund: equity portfolio churn in September 2023

Let us move on to the stocks Nippon India MF bought in September 2023, across large caps. In terms of MOM percentage increase, Nippon India MF added to positions substantially in Power Grid Corporation, Reliance Industries, HDFC Bank and ICICI Bank. In addition, it also added to its positions in State Bank of India (SBI). Nippon Fund stayed neutral on just one stock during the month of September 2023, which is Axis Bank Ltd. It was a month when the fund was aggressively lapping up large cap stocks in volumes.

What about the large cap stock exits? During September 2023, Nippon India MF cut its positions aggressively across several stocks like NTPC Ltd and Infosys Ltd. It also sold smaller quantities of Coal India Ltd and ONGC Ltd. The fund’s top 5 stock picks for September 2023 based on percentage increase in holdings included fresh addition of PG Electroplast Ltd and Sheela Foam Ltd as well as enhancement of stake in stocks like Rishabh Instruments, Aditya Birla Capital and TVS Holdings Ltd.

UTI Mutual Fund: equity portfolio churn in September 2023

Let us now turn to the oldest fund in India and check what are the shares that UTI Mutual Fund bought and sold in September 2023? In terms of MOM percentage increase, UTI MF added to its large cap positions substantially in stocks like HDFC Bank Ltd. In addition, they also added smaller quantities of Reliance Industries, ITC Ltd, TCS and Kotak Mahindra Bank Ltd. The fund was neutral on 4 stocks viz. ICICI Bank Ltd, Infosys Ltd, Larsen & Toubro and Bajaj Finance Ltd for the month of September 2023.

On the exit side, UTI was a seller only on Axis Bank, which incidentally happens to be the bank the UTI had promoted. The fund’s top 5 stock picks for September 2023 based on the percentage increase in holdings included enhancement of stake in Oil India Ltd, Vodafone Idea Ltd, Indiabulls Housing Finance Ltd, Coal India Ltd and Shriram Finance Ltd.

Aditya Birla Sun Life (ABSL) Mutual Fund: equity portfolio churn in September 2023

Let us now look at the shares that Aditya Birla Sun Life (ABSL) Mutual Fund bought in September 2023; predominantly in the large cap space. In terms of MOM percentage accretion, ABSL MF added to its positions substantially in Reliance Industries Ltd and to a lesser extent in Sun Pharmaceuticals Ltd. However, ABSL Mutual Fund stayed neutral on 3 stocks viz. ICICI Bank Ltd, Bharti Airtel Ltd and Bajaj Finance Ltd for the month of September 2023.

Interestingly, ABSL MF was quite aggressive on the sell side. The fund cut positions quite aggressively in several large caps, especially Larsen & Toubro and HDFC Bank while it cut positions to a moderate level in Infosys Ltd, Axis Bank Ltd and State Bank of India (SBI) in September 2023. The fund’s top 5 stock picks for September 2023 based on percentage accretion in holdings included enhancement of stake in stocks like Sunteck Realty, CIE Automotive India Ltd, Torrent Pharma Ltd, Bharat Heavy Electricals Ltd (BHEL) and Vodafone Idea Ltd.

Axis Mutual Fund: equity portfolio churn in September 2023

Let us now turn to the shares that Axis Mutual Fund traded in September 2023, across market cap classes. In terms of MOM percentage increase, once again, Axis Mutual Fund did not add to its positions in any of the frontline stocks. If that was not enough, the fund was not even neutral in any of the frontline stocks in the market. It was largely a sell-side story for Axis Mutual Fund in the month of September 2023; and the story is almost a repeat of the story in August 2023. Clearly, they are opting to stay light at the top of the markets.

The real story was quite aggressive on the sell side. Axis Mutual Fund was an aggressive seller in September 2023 across HDFC Bank, ICICI Bank, TCS and Pidilite Industries Ltd. It sold smaller quantities of Bajaj Finance, Avenue Supermarts, Cholamandalam Investment & Finance Ltd, Nestle India Ltd, Info Edge (Naukri.com) and Pidilite Industries Ltd in the month of September 2023. The fund’s top 5 stock picks for September 2023 based on the percentage accretion in holdings were BSE Ltd, United Spirits, Tata Power Company, Bharat Forge and BPCL Ltd.

Kotak Mutual Fund: equity portfolio churn in September 2023

Here is a quick look at stocks that Kotak Mutual Fund bought in September 2023, across market cap classes. In terms of MOM percentage increase, Kotak Mahindra MF was extremely aggressive on Reliance Industries, Ultratech Cements, HDFC Bank and SBI. In addition, Kotak MF added smaller quantities of ICICI Bank and Maruti Suzuki Ltd to its shopping basket in the month. However, Kotak Mutual Fund did not opt to stay neutral on any stock in the month of September 2023..

There were several stocks in which Kotak Mutual Fund cut positions aggressively including Larsen & Toubro Ltd (L&T) and Infosys Ltd. The fund was also a muted seller in Axis Bank Ltd and in Bharat Electronics Ltd (BEL). The fund’s top 5 stock picks for September 2023 based on percentage accretion in holdings included enhancement in holdings in Aarti Industries Ltd, Aavas Financiers Ltd, ABB India Ltd, Abbott India Ltd and ACC Ltd. 

Mirae Mutual Fund: equity portfolio churn in September 2023

Mirae has seen one of the fastest growth in equity AUM in last few years. Among the frontline stocks that Mirae Mutual Fund bought aggressively in September 2023 were Bharti Airtel and HDFC Bank. The fund was also a buyer, albeit to a lesser extent, in stocks like ICICI Bank. The fund did not opt to remain neutral on two heavyweights in the Indian market in the month of September 2023 viz. Reliance Industries Ltd and SBI.

During the month of September 2023, Mirae MF sold aggressively in Larsen & Toubro Ltd (L&T) and NTPC Ltd. It also sold smaller quantities of Axis Bank Ltd and Infosys Ltd. The fund’s top 5 stock picks for September 2023 based on percentage accretion in holdings included enhancement in its stake in Nippon India AMC, Gujarat Fluorochemicals Ltd, UPL Ltd, Grasim Industries Ltd and Timken India Ltd in the month of September 2023.

DSP Mutual Fund: equity portfolio churn in September 2023

Finally, let us look at what DSP Mutual Fund did in September 2023. The fund increased its holding in Power Finance Corporation Ltd substantially and to a lesser extent in IPCA Laboratories Ltd, Bajaj Finance Ltd and Alkem Laboratories Ltd. DSP Mutual Fund opted to remain neutral in just one stock i.e., Bharat Forge Ltd for the month of September 2023.

In terms of selling, DSP MF was a seller across several frontline counters and these include stocks like ICICI Bank, HDFC Bank, Axis Bank, Infosys Ltd and Emami Ltd. The fund’s top 5 stock picks for September 2023 based on percentage increase in holdings were Vodafone Idea Ltd, Adani Ports SEZ Ltd and Rainbow Children’s Medicare Ltd. In addition, the fund took fresh position in HLE Glasscoat Ltd and L&T Finance Holdings Ltd.