Mutual Fund Insights – November 2018

Making the most of price correction, the month of October recorded the highest ever monthly purchase by domestic mutual funds in equities (net buyers of INR 239bn in Oct-18). Existing cash chest coupled with relentless inflows (INR 155bn in October) into equity schemes has been one of the key reasons behind this. Mutual funds aggressively bought Banks and Refineries and sold Healthcare and Capital Goods stocks. Let’s have a look at mutual fund insights to check what is going on in the industry.

Equity AUM stands @INR 8.33tn | Equity Schemes saw inflows of INR 155bn |SIP Collection is at INR 79.85bn (Lifetime high)

Mutual Funds were seen adding market heavyweights significantly. Within private majors- Axis Bank, HDFC Twins and State Bank Of India were added along with Reliance Industries, Coal India and Infosys. While funds reduced holdings in Yes Bank, NTPC, Bharti Infratel, Power Finance, and Ashok Leyland.

In the Small cap space, La Opala was a fresh entry in DSP MF’s portfolio. Along with existing holdings, the stock was added by UTI MF. Ujjivan Financial Services was a fresh entrant in Franklin Templeton MF’s holding.

Did you know? MF Oct’18 SIP Inflow is the best this fiscal?

Oct – 7,900 cr
Sep – 7,727 cr
Aug – 7,658 cr
July – 7,554 cr
June – 7,554 cr
May – 7,304 cr
April – 6,690 cr

Mutual Fund Insights

Aditya Birla SL MF’s major additions were State Bank Of India (INR8.01bn), Housing Development Finance Corporation (INR5.72bn) and Reliance Industries (INR4.75bn). Its major reductions were Yes Bank (INR6.35bn), Larsen & Toubro (INR3.82bn) and Hindustan Petroleum Corporation (INR2.6bn). HEG and Just Dial were new entrants in the portfolio and Complete exits were Dewan Housing and BHEL.

DSP BR MF’s significant additions were Nestle India (INR1.71bn), Jubilant Foodworks (INR1.07bn) and Bajaj Finance (INR0.93bn). The fund reduced exposure to Yes Bank (INR2.54bn), ICICI Bank (INR2.25bn) and Divis Laboratories (INR1.44bn). LIC and Cholamandalam Investment new entrants in the portfolio while ICICI Securities and Advanced Enzyme were complete exits.

Franklin Templeton MF’s major additions were Bharat Petroleum Corporation (INR1.78bn), Ultratech Cement (INR0.74bn) and Ujjivan Financial Services (INR0.72bn). Its major reductions were State Bank Of India (INR1.11bn), NTPC (INR0.75bn) and National Aluminium Company (INR0.59bn). Ujjivan Financial and United Spirits were the new entries.

HDFC MF’s major additions were Coal India (INR7.51bn), Hindustan Petroleum Corporation (INR5.02bn) and Bharat Petroleum Corporation (INR3.86bn). Its major reductions were Mahindra & Mahindra (INR0.98bn), Avenue Supermarts (INR0.92bn) and Infosys (INR0.77bn). New entries included Finolex Industries and Garden Reach Shipbuilder while complete exits were HDFC Standard Life and Manappuram Finance.

ICICI Pru MF’s significant additions were Bharti Airtel (INR11.12bn), Coal India (INR10.1bn) and Axis Bank (INR8.05bn). The fund reduced exposure to NTPC (INR3.85bn), Wipro (INR2.48bn) and Cipla (INR2.39bn). Healthcare Global Enterprises was a new entrant while Electrosteel Castings was a complete exit.

Reliance Nippon MF’s major additions were Infosys (INR4.55bn), Reliance Industries (INR3.99bn) and Axis Bank (INR3.35bn). Its major reductions were HDFC Bank (INR2.88bn), Ambuja Cements (INR2.6bn) and ICICI Bank (INR2.58bn). Fresh entries included Great Eastern Shipping and MCX. Complete exits were REC and Godrej Agrovert.

SBI MF’s significant additions were Housing Development Finance Corporation (INR5.68bn), ICICI Bank (INR4.5bn) and Aavas Financiers (INR3.66bn). The fund reduced exposure to Bharti Infratel (INR2.28bn), Colgate-Palmolive (India) (INR1.13bn) and Indian Oil Corporation (INR0.93bn). New entrants included CRISIL and Just Dial. Meanwhile, Dewan Housing Finance Corporation and Finlox Industries were complete exits.

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