Mutual funds have been long term buyers in the equity markets and that trend has got accentuated in the last few years. During this period, these funds saw consistent flows into equity funds. One of the ways to get a colour of the market is by gauging the stocks that the top funds in terms of AUM are entering or exiting. First, a quick look at the top funds in India with the largest equity AUM.
How the AMCs with top equity AUM stack up
While overall AUM is a good measure, it does not capture the dual aspects of retail participation and equity appetite. One of the ways is to compare the top AMCs based on equity AUM. Check the graph below.
Some of the AMCs that have recently ramped up their equity AUM substantially are Nippon MF, UTI MF and Mirae MF. Overall, the top 10 mutual funds here account for over 90% of the equity AUM. Here equity AUM also includes the equity AUM of hybrid funds. What we focus on is the buy and sell actions of the top 3 funds viz. SBI MF, ICICI Pru MF and HDFC MF.
What SBI MF bought and sold in Nov-21
SBI Mutual Fund is not just the largest AMC based on overall AUM but also on equity AUM by a huge margin. In fact, the equity AUM of SBI MF at Rs3.576 trillion is more than 75% higher than the next on the AUM rank. Among the top equity holdings of SBI MF are HDFC Bank, Reliance, ICICI Bank and Infosys. Here is what SBI MF bought and sold in Nov-21.
Among the top 5 fresh buys of SBI MF in Nov-21, three were IPOs and 1 was an INVIT. SBI Mutual Fund invested Rs767cr in Nykaa, Rs604cr in NHAI INVIT and Rs100cr in Go Fashion IPO. The fund also invested Rs93cr in PB Fintech (the owner and operator of Policybazaar).
During the month, SBI MF also made smaller fresh investments in Metropolis Health, Laurus Labs and Birlasoft. In addition, SBI also added to its stake in ABFRL, IRCTC and Mazagon Docks. It added 2.65 lakh shares of ABFRL, 1.15 lakh shares of IRCTC and 8.10 lakh shares of Mazagon Docks.
In Nov-21, SBI MF did not exit any stock in totality. However, it did cut stakes in some stocks. It reduced holdings in Alembic Pharma by 3.85 lakh shares while it also cut smaller quantities of Indiamart Intermesh and Syngene International.
What ICICI Prudential MF bought and sold in Nov-21
ICICI Prudential Mutual Fund has emerged as the second largest AMC based on overall AUM and also equity AUM; overtaking HDFC MF decisively in the recent past. In fact, the equity AUM of ICICI Pru MF at Rs1.995 trillion makes the fund a significant and influential player in the equity space. Among the top equity holdings of ICICI Pru MF are ICICI Bank, Infosys and Bharti Airtel. Here is what ICICI Pru MF bought and sold in Nov-21.
Among the top 5 fresh buys of ICICI Pru MF in Nov-21 all were either IPOs or recent listings. ICICI Pru MF invested Rs163cr in Nykaa, Rs93cr in PB Fintech (the owner and operator of Policybazaar), Rs60cr in Latent View Analytics, Rs55cr in Go Fashion, Rs37cr in CarTrade Tech and Rs31cr in Tarsons Products.
During the month of November, ICICI Pru MF also added to its positions in Zensar, Firstsource and Avanti Feeds. The fund added 31.24 lakh shares of Zensar, 55.65 lakh shares of Firstsource Solutions and 3.18 lakh shares of Avanti Feeds.
Regarding exits, ICICI Pru MF made a total exit from 2 stocks; selling shares worth Rs131cr in Zomato and entire holdings worth Rs4cr in Voltamp Transformers. ICICI Pru MF also reduced holdings in Burger King by 1.19 lakh shares and cut smaller quantities in Abbott and Akzo Nobel in Nov-21.
What HDFC MF bought and sold in Nov-21
HDFC Mutual Fund may have ceded the top 2 AUM positions to SBI MF and ICICI Pru MF after a long leadership, but remains an influential voice in equity stock selection. In fact, the equity AUM of ICICI Pru MF at Rs1.741 trillion makes the fund a significant and influential player. Among the top equity holdings of HDFC MF are ICICI Bank, Infosys, L&T, SBI and HDFC Bank. Here is what HDFC MF bought and sold in Nov-21.
Among the top 5 fresh buys of HDFC MF in Nov-21 four were IPOs. HDFC Mutual Fund invested Rs180cr in Nykaa, Rs127cr in Paytm, Rs93cr in PB Fintech (the owner and operator of Policybazaar), Rs55cr in Go Fashion and Rs26cr in Indiabulls Housing Finance. The fund also made fresh purchases into Sundaram Finance, Sapphire Foods, Adani Transmission, Adani Green, Laurus Labs and Latent View Analytics.
During the month of November, HDFC MF also added to its positions in Colgate Palmolive, SAIL and NMDC. The fund added 1.11 lakh shares of Colgate Palmolive, 9.44 lakh shares of SAIL and 3.37 lakh shares of NMDC.
Regarding exits, ICICI Pru MF made a total exit from 3 stocks; selling shares worth Rs10.62cr in IEX, Rs3.25cr in TVS Motors and Rs2.93cr in India Cements taking total exits from these stocks. HDFC MF also cut stakes in Vedanta, Biocon and IRCTC in Nov-21.
While the top funds preferred to diversify their holdings by adding on to IPOs, there was significant churn across portfolios.