Like in the last couple of years, SBI has been way ahead of competition in terms of equity fund AUM and that gap has widened recently. With ICICI Pru and HDFC also entrenched in the top-3, there were interesting changes in the others. Nippon MF, UTI, Axis and Kotak have worked to enhance equity AUM significantly and now having more than Rs1 trillion in equity fund AUM. Mirae and DSP MF are two cases of funds with substantial equity funds in their overall AUM. Here are the stocks the big-3 mutual funds bought and sold in Jun-21.
What SBI MF bought and sold in June 2021
With total equity AUM of Rs2.92 trillion, SBI MF is by far the most influential player in equity funds. Their top-3 stock holdings as of Jun-21 were HDFC Bank, Infosys and Reliance Industries. Here is a look at what SBI MF bought and sold in June 2021.
The fresh accretions were concentrated in the IPO space. For example, SBI MF added Rs689cr of Sona BLW Precision, Rs246cr of Dodla Dairy and Rs65cr of India Pesticides during Jun-21. Other than these IPOs, it also bought Indian Bank, KNR Construction, Brigade Enterprises and Manappuram Finance from the secondary market. SBI MF preferred construction and infrastructure companies, betting on a revival in spends. SBI MF also added some 16 lakh shares of Credit Access Grameen and 4 lakh shares of Shriram Transport to its existing holdings.
SBI MF was an active portfolio churner over last few months and Jun-21 was not different. It fully sold out of JSW Energy in Jun-21 while it booked profits on its Rs15cr Barbeque Nation IPO allotment. Additionally, SBI trimmed its holdings by 50 lakh shares in Vodafone Idea while also paring its stake in GIC and Hindustan Zinc.
What ICICI Pru MF bought and sold in June 2021
With total equity AUM of Rs1.75 trillion, ICICI Pru MF remains an extremely influential player in the realm of equity funds. Their top-3 stock holdings as of Jun-21 were ICICI Bank, Infosys and Bharti Airtel. Here is what ICICI Pru MF bought and sold in Jun-21.
During Jun-21, its biggest fresh purchase worth Rs83cr was in the IPO of Krishna Institute of Medical Sciences (Hyderabad based KIMS). Apart from KIMS, ICICI Pru did buy small quantities of Intellect Design, Balaji Amines, Happiest Minds, Burger King and Rossari Biotech. ICICI Pru also made some addition to existing holdings. It added 15.88 lakh shares of Zensar and 1.88 lakh shares of Bharat Dynamics to existing holdings in Jun-21.
In Jun-21, ICICI Pru MF took full exit in a number of stocks; key among them being GIPCL, Chemcon Specialty Chemicals, Wonderla Holidays and Starlog Enterprises. It also reduced its holdings in some of the shares in its existing portfolio. ICICI Pru cut down 25.5 lakh shares of Sadbhav Engineering, 3.9 lakh shares of Godrej Agrovet and 2.8 lakh shares of Thyrocare Technologies. ICICI Pru has also been using higher levels to rationalize its portfolio.
What HDFC MF bought and sold in June 2021
HDFC MF may be in third place in terms of overall AUM and equity AUM, but it remains a market bellwether. With total equity AUM of Rs1.69 trillion, HDFC MF remains a force to reckon with. The top-3 stock holdings as of Jun-21 were SBI, ICICI Bank and Infosys. Here is what HDFC MF bought and sold in Jun-21.
Like ICICI MF, even HDFC MF made fresh additions to KIMS worth Rs117cr and like SBI MF it added shares in the Sona BLW Precision IPO worth Rs65cr. Other significant fresh additions to the HDFC MF portfolio included Inox Wind, Bata India, Ramco Cements, Alembic Pharma, TVS Motors, Godrej Properties and Alkem. HDFC MF also added 1.65 lakh shares to its existing holdings in IGL and enhanced holdings in Havells during Jun-21.
During Jun-21, HDFC MF fully exited its holdings in Grindwell Norton, VST Tillers, Marico, Hathaway Cables and Pushkar Chemicals. At the same time, HDFC MF also significantly reduced its stake in Just Dial by 8.2 lakh shares and in NMDC by 5.4 lakh shares. It also pared its stake in Info Edge ahead of the Zomato IPO.
Mutual Fund Churn: Big picture for Jun-21
Overall, among equity funds, the largest percentage accretion in holdings were seen in JSW Steel, HDFC Life, Tech Mahindra, Bajaj Auto, Hero MotoCorp, Hindalco, ITC, TCS, SBI Life and M&M. The largest percentage reduction happened in stocks like IOC, Grasim, Titan, ONGC, Tata Consumer, Asian Paints, Wipro, Infosys, Coal India and Nestle. Clearly, Jun-21 has been a month of aggressive churn by mutual funds.