What the big 10 fund houses bought and sold in August 2023?

13 Sep 2023 , 01:39 PM

At the current juncture, India has more than 43 active AMCs and this number is growing on a regular basis. Obviously, it would not be practical to look at the buying and selling actions of all these AMCs. However, a fairly representative picture would emerge if one looks at the top 10 AMCs by equity fund AUM. A quick ballpark figure is that these top 10 funds would cover more than 90% of the equity AUM and over 85% of all the churn being done by mutual funds in Indian equities. That should certainly provide a reliable picture.

Obviously, the top-10 is dominated by the bancassurance plays; which are essentially the mutual funds that are backed by banks. Here we evaluate the shifts in their equity portfolio at 2 levels. At the first level, we look at the large cap stocks which the fund purchased, sold or even the stocks where these funds were largely neutral during the month of August 2023. At the second level, we check the most preferred stocks of each fund house from an alpha perspective. These are size agnostic, but generally smaller companies. This gives a single template view of the large caps that these funds are churning as well as the stocks where they are doing alpha hunting. Alpha hunting can be based on fresh additions or based on accretion to the existing holdings in a particular stock.

SBI Mutual Fund: equity portfolio churn in August 2023

Let us first look at the shares that SBI Mutual Fund bought in the month of August 2023, across all market cap classes but predominantly large caps. In terms of MOM percentage increase, SBI MF added to its positions in Reliance Industries, followed by HDFC Bank, Bharti Airtel, and Bajaj Finance Ltd. To a lesser extent, the SBI MF also added to its positions in ICICI Bank, Infosys and ITC Ltd. Surprisingly, SBI was neutral two stocks viz. Larsen & Toubro and on TCS.

SBI MF cut its stakes in just one stock and that was its parent company, State Bank of India (SBI). On other frontline stocks, the fund was either neutral or positive. The fund’s top 5 stock picks for August 2023 in terms of percentage accretion in holdings include fresh addition of Coforge Ltd, Nippon Life AMC and Kajaria Ceramics. In addition, SBI MF also added to its positions in SBFC Finance Ltd and to Laurus Labs.

ICICI Prudential Mutual Fund: equity portfolio churn in August 2023

Let us turn to the large cap shares that ICICI Prudential Mutual Fund bought in August 2023. In terms of MOM percentage increase, ICICI Prudential Mutual Fund added to its positions substantially in Bharti Airtel and Maruti Suzuki Ltd. It also added to its positions in Sun Pharma, HDFC bank Ltd, and to a lesser extent in ICICI Bank and Reliance Industries Ltd. ICICI Prudential Mutual Fund did not stay neutral on any of the frontline stocks in August 2023.

There were several stocks in which ICICI Prudential MF cut positions. They cut positions very aggressively in NTPC Ltd, Axis Bank and Infosys Ltd. In addition, the fund also pared positions in Larsen & Toubro (L&T) during the month of August 2023. The fund’s top 5 stock picks for August 2023 included fresh addition of Minda Corp, Inox Wind Ltd and Redtape Ltd. In addition, ICICI Prudential MF also enhanced positions in Suzlon Energy and Piramal Pharma Ltd.

HDFC Mutual Fund: equity portfolio churn in August 2023

Let us first look at the shares that HDFC Mutual Fund bought in August 2023, mainly  in the large cap space. In terms of MOM percentage increase, HDFC Mutual Fund added to its positions in HDFC Bank, Bharti Airtel, and Reliance Industries to a substantial level. It also added to its positions in Axis Bank, SBI, and ICICI Bank Ltd. However, HDFC Mutual Fund chose to be neutral on NTPC Ltd and on ITC Ltd in August 2023.

On the sell side, HDFC mutual Fund sharply cut positions in stocks Larsen & Toubro and Infosys Ltd. The fund’s top 5 stock picks for August 2023 based on percentage increase in holdings included fresh addition of Astra Microwave Products and enhancement of stake in stocks like Sula Vineyards, DLF Ltd, Krishna Institute of Medical Sciences (KIMS) and Premier Explosives Ltd.

Nippon India Mutual Fund: equity portfolio churn in August 2023

Let us move on to the stocks Nippon India MF bought in August 2023, across large caps. In terms of MOM percentage increase, Nippon India MF added to positions substantially in HFDC Bank Ltd and Reliance Industries Ltd. In addition, it also aggressively added to its positions in NTPC Ltd, Infosys Ltd and Coal India Ltd. Nippon Fund stayed neutral on several stocks during the month of August 2023. The fund stayed neutral on ICICI Bank, SBI, ONGC Ltd and Power Grid Corporation for the month of August 2023.

What about the large cap stock exits? During August 2023, Nippon India MF cut its positions across just one stock i.e., Axis Bank Ltd. The fund’s top 5 stock picks for August 2023 based on percentage increase in holdings included fresh addition of Inox Wind Ltd as well as enhancement of stake in stocks like BSE Ltd, Union Bank of India, Adani Enterprises Ltd and Lemon Tree Hotels.

 

UTI Mutual Fund: equity portfolio churn in August 2023

Let us now turn to the oldest fund in India and check what are the shares that UTI Mutual Fund bought and sold in August 2023? In terms of MOM percentage increase, UTI MF added to its large cap positions substantially in stocks like Reliance Industries, TCS, Larsen & Toubro and Kotak Mahindra Bank Ltd. In addition, they also added smaller quantities of HDFC Bank, Infosys Ltd, Axis Bank Ltd, ITC Ltd, Bajaj Finance and ICICI Bank Ltd. The fund was not neutral in any stock during the month of August 2023.

On the exit side, UTI was not a seller in any of the major stocks and was actually a net buyer in all the front line stocks. The fund’s top 5 stock picks for August 2023 based on the percentage increase in holdings included fresh addition of Dixon Technologies and enhancement of stake in Suzlon Energy, Biocon, LIC Housing and Bandhan Bank Ltd.

Aditya Birla Sun Life (ABSL) Mutual Fund: equity portfolio churn in August 2023

Let us now look at the shares that Aditya Birla Sun Life (ABSL) Mutual Fund bought in August 2023; predominantly in the large cap space. In terms of MOM percentage accretion, ABSL MF obviously added to its positions substantially in HDFC Bank and to Reliance Industries. ABSL MF also added to its positions in Bharti Airtel, Bajaj Finance and ICICI Bank to a more moderate extent. However, ABSL Mutual Fund stayed neutral on Infosys Ltd for the month of August 2023.

Interestingly, ABSL MF was quite aggressive on the sell side. The fund cut positions quite aggressively in several large caps, especially State Bank of India, Axis Bank and Larsen & Toubro while it cut positions to a moderate level in Sun Pharmaceuticals Ltd in August 2023. The fund’s top 5 stock picks for August 2023 based on percentage accretion in holdings included enhance of stake in stocks like Union Bank of India, SJS Enterprises, LIC Housing Finance, Manappuram Finance and JSW Steel Ltd.

Axis Mutual Fund: equity portfolio churn in August 2023

Let us now turn to the shares that Axis Mutual Fund traded in August 2023, across market cap classes. In terms of MOM percentage increase, Axis Mutual Fund did not add to its positions in any of the frontline stocks. If that was not enough, the fund was not even neutral in any of the frontline stocks in the market. It was largely a sell-side story for Axis Mutual Fund in the month of August 2023.

The real story was quite aggressive on the sell side. Axis Mutual Fund was an aggressive seller in August 2023 across Cholamandalam Investment & Finance, Pidilite Industries, and Info Edge (Naukri.com). The fund sold off at a moderate level in stocks like Bajaj Finance, ICICI Bank, TCS, HDFC Bank, and Nestle India. In addition, Axis Mutual Fund also sold smaller quantities in Avenue Supermarts ad PI Industries during the month of August 2023. The fund’s top 5 stock picks for August 2023 based on the percentage accretion in holdings were Bharat Forge, Mankind Pharma, ICICI Prudential Life Insurance, Minda Corp, and Zomato Ltd.

Kotak Mutual Fund: equity portfolio churn in August 2023

Here is a quick look at stocks that Kotak Mutual Fund bought in August 2023, across market cap classes. In terms of MOM percentage increase, Kotak Mahindra MF was extremely aggressive on Reliance Industries, HDFC Bank and Maruti Suzuki India Ltd. In addition, Kotak MF added ICICI Bank also to its shopping list in the month. However, Kotak Mutual Fund opted to stay neutral on State Bank of India for the month of August 2023..

There were several stocks in which Kotak Mutual Fund cut positions aggressively including Infosys Ltd, Larsen & Toubro and Bharat Electronics Ltd (BEL). The fund was also a muted seller in Axis Bank Ltd and in Ultratech Cements Ltd. The fund’s top 5 stock picks for August 2023 based on percentage accretion in holdings included fresh addition of Deepak Nitrite, Jammu & Kashmir Bank and Radico Khaitan; while the fund increased its holdings in Vedanta Ltd and in Coforge Ltd.

Mirae Mutual Fund: equity portfolio churn in August 2023

Mirae has seen one of the fastest growth in equity AUM in last few years. Among the frontline stocks that Mirae Mutual Fund bought aggressively in August 2023 were Bharti Airtel, HDFC Bank, Axis Bank and State Bank of India. The fund was also a buyer, albeit to a lesser extent, in stocks like ICICI Bank, HCL Technologies Ltd, and Larsen & Toubro Ltd. The fund did not opt to remain neutral on any of the stock counters.

During the month of August 2023, Mirae MF sold aggressively in Reliance Industries. It also sold smaller quantities of Infosys Ltd and NTPC Ltd. The fund’s top 5 stock picks for August 2023 based on percentage accretion in holdings included fresh accretion to Teamlease Services, Campus Activewear, Interglobe Aviation (Indigo Airways) and Wipro Ltd, but also enhanced its stake in M&M and Eicher Motors Ltd in the month of August 2023.

DSP Mutual Fund: equity portfolio churn in August 2023

Finally, let us look at what DSP Mutual Fund did in August 2023. The fund increased its holding in Alkem Laboratories and Bharat Forge Ltd substantially and to a lesser extent in HDFC Bank, Axis Bank Ltd and Samvardhana, Motherson International Ltd. DSP Mutual Fund opted to remain neutral in just one stock i.e., Emami Ltd for the month of August 2023.

In terms of selling, DSP MF was a seller across several frontline counters and these include stocks like ICICI Bank, Bajaj Finance, Infosys Ltd and IPCA Laboratories Ltd. The fund’s top 5 stock picks for August 2023 based on percentage increase in holdings were REC Ltd, Page Industries Ltd, Prudent Corporate Advisory Services, Suven Pharmaceuticals and Hindalco Industries Ltd.