What the Big-3 mutual funds bought and sold in Aug-21

It would be interesting to see what the big-3 fund houses in terms of equity AUM bought and sold in the month of August.

Sep 17, 2021 12:09 IST India Infoline News Service

Aug-21 was a month when the equity fund flows were robust with SIPs at Rs9,923cr and inching close to the Rs10,000cr mark. It would be interesting to see what the big-3 fund houses in terms of equity AUM bought and sold in the month of August. But, first a look at the top-10 equity AUM league as of the end of Aug-21.

Data Source: AMFI

The top 10 funds account for over 90% of the equity funds AUM of the MF segment while the top-3 funds account for over 50% of total AUM. Therefore, looking at the buying and selling trends of the top-3 funds gives a reasonably good idea of which way the wind is blowing.

What stocks did SBI Mutual Fund buy and sell in Aug-21?

SBI MF is India’s largest mutual fund in terms of overall AUM and also in terms of equity funds AUM. With an equity AUM of Rs332,420cr, it remains a formidable force in setting the tone of mutual fund action. Its top 3 holdings include HDFC Bank, Infosys and ICICI Bank as of Aug-21.

Most of the fresh purchases by SBI MF in the month of August were concentrated in the IPOs. SBI MF invested Rs825cr in Chemplast Sanmar and Rs430cr in the Nuvoco Vistas IPO. It was also a key buyer in other IPOs infusing Rs39cr into Krsnaa Diagnostics and Rs27.7cr into Rolex Rings. In the secondary market, SBI MF picked up Rs41cr worth of Oberoi Realty and Rs13cr worth of Polycab India. It also bought small quantities of Indiamart. SBI also added to its positions in Canara Bank by 17.82 lakh shares and Minda Industries by 13.43 lakh shares.

Among the major exits by SBI MF in Aug-21, it full exited ALCARGO Logistics, Metropolis Healthcare and PNC Infratech. It also reduced positions in a number of stocks. For example, SBI MF cut its holding in Yes Bank by 3.06 crore shares and its stake in Glenmark Pharma by 2.03 lakh shares.

What stocks did ICICI Prudential MF buy and sell in Aug-21?

ICICI Pru MF is India’s second largest mutual fund in terms of overall AUM and also in terms of equity funds AUM and has overtaken HDFC MF in last couple of months. With an equity AUM of Rs196,100cr, it remains an important driver in setting the tone of mutual fund action in the equity markets. Its top 3 holdings include ICICI Bank, Bharti Airtel and HDFC Bank.

Most of the fresh purchases by ICICI Prudential MF in the month of August were also in the IPO space. ICICI Prudential MF invested Rs129cr in Rolex Rings, Rs128cr in Chemplast Sanmar, Rs83cr in Nuvoco Vistas, Rs47cr in Devyani International and Rs23cr in Windlas Biotech. All its new buyers were from the IPOs only, with no secondary market purchase. However, ICICI Prudential did increase its stake in some stocks. For instance, it added 26.3 lakh shares of NCC Ltd during August, 1 lakh shares of India Energy Exchange and a smaller quantity of Strides Pharma.

ICICI Pru MF also made some interesting exits. In August 2021, ICICI Pru fully exited two IPOs it had invested in earlier viz. Prince Pipes and Clean Science and Technologies. It also fully exited DEN Networks and Asahi India Glass. Apart from the total exits, ICICI Prudential Mutual fund reduced its exposure in some stocks. It sold about 4.84 lakh shares in VIP Industries, 5.38 lakh shares in Gujarat Heavy Chemicals and a smaller quantity of 61,500 shares in Route Mobile.

What stocks did HDFC Mutual Fund buy and sell in August 2021?

HDFC MF is now India’s third largest mutual fund in terms of overall AUM and also in terms of equity AUM. With equity AUM of Rs175,380cr, it remains a powerful force in setting the tone of mutual fund action in equity markets. Its top holdings include ICICI Bank, SBI, Infosys, HDFC Bank and L&T.

The fresh purchases by HFDC MF in the month of August were a mix of IPOs and secondary market purchases. It invested Rs.102cr in Aavas Financiers, Rs16cr in Indiabulls Housing and Rs12cr in VRL Logistics in the secondary market. It also had a steady IPO shopping list. It added Rs53cr of Chemplast Sanmar, Rs.48cr of CarTrade Tech and Rs33cr of Rolex Rings. HDFC MF added 1.29 crore shares of IDFC Bank and smaller quantities of Ramco Cements and Colgate Palmolive to its existing holdings.

Among the total exits in August, HDFC MF fully exited the IPO of Krishna Institute of Medical Sciences selling Rs85cr worth of shares. It also sold Rs5.8cr of MPS Ltd and Rs3cr of IGL. In addition, HDFC MF also cut its positions by 4.4 crore shares in Vodafone and sold over 2.68 lakh shares of Indus Towers and 1.17 lakh shares of Havells India.

Overall, the purchases in August appear to be dominated by the IPO frenzy that has taken over the primary markets in the last few months.

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