The above chart captures the AUM of equity assets of the top 10 AMCs. Mirae is a recent entrant in the top-10 but others have had a regular presence in the equity AUM rankings. We focus on the buying and selling action of the top 3 funds viz. SBI MF, ICICI Pru MF and HDFC MF. These 3 funds manage equity AUM of around Rs7.50 trillion between them and are show-stoppers when it comes to setting the direction of fund buying.
What SBI Mutual Fund bought and sold in Oct-21?
With equity AUM of Rs360,492cr, SBI remains the most formidable name in equity mutual funds by a margin. SBI, considering its size, remains largely invested in big ticket players in the market including ICICI Bank, SBI, Infosys and HDFC Bank. Here is the stock action of SBI MF in Oct-21.
Let us first look at the fresh buys in the month of Oct-21. Out of its 3 largest fresh buys, 2 were big ticket IPOs. For example, SBI MF invested Rs199cr in Aditya Birla Sun Life AMC and Rs75cr in digital fashion start-up, Nykaa. Both were IPOs that SBI invested during the month of Oct. Apart from these IPOs, SBI MF bought about Rs96cr of Gokaldas Exports, Rs22cr of KPR Mills and Rs15cr of Delta Corp. It also made smaller fresh purchases in GMR Infra and ABFRL during Oct. There were stocks where SBI MF added to existing positions. During the month of Oct-21, SBI MF added 12.5 lakh shares of BHEL, 3 lakh shares of Sun TV and 1 lakh shares of Max Financial.
We turn to the stock that SBI MF cut totally or reduced in Oct-21. It sold its entire holding of Rs41cr in Kewal Kiran, Rs21cr in Firstsource, Rs8cr in Bector and a similar holding in Deepak Nitrite and Gujarat Gas. These were the stocks that SBI MF exited in totality during Oct-21. It also reduced its stake by 76 lakh shares in IRB Infra, 5 lakh shares in Nippon AMC and 1.6 lakh shares in IRCTC.
What ICICI Pru Mutual Fund bought and sold in Oct-21?
With equity AUM of Rs201,991cr, ICICI Pru remains an important driver of opinion among equity mutual funds. ICICI Pru MF’s largest stock exposures included ICICI Bank, Bharti Airtel and Infosys.
Like SBI MF, ICICI Pru MF also binged heavily on IPOs in Oct-21. It invested Rs248cr in Aditya Birla Sun Life AMC and infused Rs75cr in Nykaa. It also invested a fresh Rs47cr in Nazara Technologies, the gaming company backed by Rakesh Jhunjhunwala, nearly a year after its IPO. ICICI Pru also enhanced its stake in some stocks. It added about 4.73 lakh shares of India Cements, 2.28 lakh shares of Kerala based V-Guard and 2.21 lakh shares of Delta.
ICICI Pru MF fully exited its investment in two recent IPOs viz. the Rs27cr holding in Vijaya Diagnostics and its Rs6cr holding in Devyani International. It also fully exited Sarda Energy during Oct-21. In the month, ICICI Pru MF also reduced its stake by 10.8 lakh shares in Zensar Tech, 6 lakh shares in Just Dial and 5.3 lakh shares in KEC International. Two of the stocks it reduced stakes, belong to the RPG group.
What HDFC Mutual Fund bought and sold in Oct-21?
With equity AUM of Rs180,872cr, HDFC MF may have lost its leadership but remains a formidable name and its actions are still closely tracked. Its major exposures currently include ICICI Bank, SBI, Infosys, HDFC Bank and Larsen & Toubro. Let us start with buys.
Like SBI MF and ICICI Pru MF, HDFC MF was also quite active in the IPO market. It made fresh investments in 3 major IPOs in the month viz. Rs78cr in Aditya Birla Sun Life AMC, Rs75cr in Nykaa and Rs49.2cr in Paras Defence. In other fresh additions, HDFC MF bought Rs45cr worth of Phillips Carbon Black and Rs44cr worth of IDFC during Oct-21. Other fresh buys like TVS Motors and India Cements were much smaller. It also added to positions in Indus Towers, Interglobe Aviation and IGL during Oct-21.
Let us now turn to the complete sell outs. HDFC MF sold its Rs37.5cr of holdings in Amara Raja Batteries, Rs36.4cr in Edelweiss, Rs11cr in Indiabulls Housing and Rs5cr in Inox Wind. It also fully exited smaller positions in Indiamart, Manappuram, NCL and Nalco. In addition, HDFC MF also pared its stake in NMDC by 41 lakh shares and SAIL by 29 lakh shares.
To sum it up, the stock additions were dominated by IPOs, principally ABSLAMC and Nykaa. That remains an enduring story for mutual funds.