The top 10 most popular stocks among mutual fund managers comprise about 35% of the industry’s equity assets under management (AUM).
Topping the list is private lender ICICI Bank, which is a consensus buy on Dalal Street. Domestic fund managers have placed bets worth Rs 1.4 lakh crore on the stock, worth 6.7% of industry’s equity AUM.
The second most popular stock among domestic MFs is India’s largest private sector lender HDFC Bank, on which Rs 1.16 lakh crore is riding. Infosys, on the other hand, is not just the third largest bet but also the only IT stock to feature in the top 10 list. MFs have placed bets worth Rs 90,577 crore.
Together these 3 stocks comprise around 16.5% of industry equity AUM, according to a report by Systematix Group.
ICICI Bank, HDFC Bank, Infosys, RIL, and Bharti Airtel have featured in the top 10 holdings consistently over the previous 27 months.
During the month of September, MFs were net buyers in 70% of Nifty stocks. The highest MoM net buying in Sep was seen in Adani Enterprises (+23.9%), followed by Hero Motocorp (+13.3%), UPL (12.9%), HDFC Life (+12.7%), and Britannia (+11.6%).
Sectorally speaking, MFs are the most bullish on private banks as the weightage in the pocket stood at 18.2% in September, followed by technology (9.8%), auto (7.8%), NBFC (7.7%) and consumer (7.1%).
“On a MoM (month-on-month) basis, the weights of consumer, healthcare, telecom, PSU banks, retail, and capital goods increased, while the weights of oil, technology, private banks, metals, utilities, insurance, and NBFCs moderated,” Motilal Oswal said.
Data shows that the weight of healthcare stocks in MF portfolios climbed 30 bps to 6.6% in September, after declining at a 30-month low in August this year.
Mutual funds were bearish on oil and gas stocks as the weight slipped to a six-year low of 6% with a MoM decrease of 50 bps. The weight of tech stocks also continued to moderate in September and was at a 25-month low of 9.8%.