What the Big-5 mutual funds bought and sold in September 2021

Let us focus on what these top-5 funds by equity AUM bought and sold in Sep-21. Investors must not blindly buy or sell by just looking at the funds. The risk appetite and perspective is different. However, this gives you a quick check on what the big guns are doing.

Oct 19, 2021 10:10 IST India Infoline News Service

Mutual funds have come of age with SIP flows in a single month crossing Rs10,000cr for the first time in history. Overall equity inflow were Rs8,677cr in Sep-21, but the gross buying and selling indicated a huge churn in equities holdings in the month.

Here are the 10 largest AMCs in India by AUM comprising 83% of the total AUM of all mutual funds put together.

Data Source: Morningstar
The above chart ranks on overall AUM including equity and debt fund AUM. The pecking order consisting of SBI MF, ICICI Pru MF and HDFC MF has been consistent for some time. However, the next 7 have seen some rapid shifts in ranking. One interesting analysis would be to check out what the top funds  bought and sold in terms of specific stocks.

The above chart captures the overall AUM, but even if you look at pure equity AUM, the top-3 ranks would still remain the same. However, based on pure equity AUM, Birla MF and Kotak MF would move out of the top-5 and Nippon MF and Axis MF would move in, since they have a much larger equity franchise.

Let us focus on what these top-5 funds by equity AUM bought and sold in Sep-21. Investors must not blindly buy or sell by just looking at the funds. The risk appetite and perspective is different. However, this gives you a quick check on what the big guns are doing.

What stocks did SBI MF buy and sell in Sep-21

Let us start with stocks that SBI MF added to its portfolio. It increased positions in frontline banking stocks like HDFC Bank and ICICI Bank. It also added Max Healthcare as a play on the fast-growing healthcare space.  There were some fresh buys too. SBI MF took a fresh entry into AMI organics and Astra Poly. In the light of the power shortage, SBI MF also bought into IEX, a beneficiary of the power shortage.

Let us now turn to some stocks where SBI MF lowered its holdings. It reduced holdings in two IPOs that performed extremely well post listing viz. Gland Pharma and CAMS. SBI MF also pared its stake in PVR after the recent rally on hopes of multiplexes reopening. In addition, SBI MF completed exited positions in GIC and Hindustan Zinc. Both stocks did not live up to their early promise. The fund also exited Laxmi Organics, a recent star listing.

What did ICICI Pru MF buy and sell in Sep-21

In September, ICICI Pru MF added to its existing positions in 3 large cap stocks viz. Maruti, SBI Life and Infosys. There were some fresh buys too. ICICI Pru MF took a fresh entry into Ingersoll Rand and IRFC, both of which have been subdued performers. It also added Wonderla Holidays as a play on the tourism bounce.

For Sep-21, ICICI Pru MF cut its holdings in Sun Pharma, Bharti Airtel and ITC. In the case of ITC, it appears to be worries about the long-term value that a cigarette company can create. Bharti saw a huge rally while Sun Pharma is a similar story with little immediate visibility. In addition, ICICI Pru MF also completely exited its positions in two recent IPOs viz. Tatva Chintan Pharma Chem and Jhunjhunwala-backed Nazara Technologies. It also exited Tata Steel Long products in toto.

What HDFC MF bought and sold in Sep-21

HDFC MF added 3 stocks viz. Tata Motors, Zee Entertainment and Max Healthcare to its existing holdings in Sep-21. Zee was a surprise considering the ongoing tussle between Invesco and Punit Goenka. There were fresh buys in Action Construction Equipment, IGL and IEX. The last one, again was a play on power shortage.

Let us turn to stocks where HDFC MF cut holdings. The fund reduced its holdings in Infosys, Reliance Industries and Bharti Airtel. HDFC MF also completely exited its positions in Century Plyboards, Colgate Palmolive and Spice Jet. Colgate Palmolive was the surprise exit.

What stocks Nippon India MF bought and sold in Sep-21

Nippon India MF added to existing positions in L&T, NTPC and SBI Cards. It was playing on the revival in the capital cycle. There were some fresh buys too. Nippon India MF took a fresh entry into Power Trading, Mastek and Kolte Patil. Kolte Patil appears to be a play on the realty opportunity in Pune.

Nippon India MF reduced its holdings in IRCTC, Reliance Industries and Bharti Airtel. IRCTC appears to be profit booking after the 10-bagger rally since listing. In addition, Nippon India MF also completely exited Akzo Nobel, Balmer Lawrie and Bliss GVS Pharma.

What did Axis MF buy and sell in Sep-21

Axis MF added to its existing positions in 3 stocks viz. Bharti Airtel, Avenue Supermarts and Sun Pharma; contrary to the general trend. It is playing on the India consumption story. There were some fresh buying into APL Apollo, Syngene and Deepak Nitrite. The company has added fresh positions in high growth stocks.

Let us turn to stocks where Axis MF cut holdings. The fund reduced its holdings in Bajaj Finance, Maruti and Supreme Industries. Bajaj Finance has had a dream run in the last one year. In addition, Axis MF fully exited positions in Chalet, Thermax and Vinati Organics.
The month of September 2021 saw aggressive churn in stocks and the top funds have used the rally to selectively restructure the bias of their portfolios.

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