Given the added volatility in Indian share markets in the month of April 2022, retail investors cut down their mutual fund investments.
They preferred to be slightly cautious with their investment as the ongoing volatile market trend is leaving no stones unturned. Even fundamentally strong stocks are getting hammered.
Here's a list of blue-chip stocks trading close to their 52-week lows.
In April 2022, net inflows into equity mutual fund schemes declined 44% sequentially to Rs 15,890 crore as against Rs 28,460 crore in March 2022.
While the inflows were significantly lower compared to previous month, retail investors showed trust in these volatile times and held their faith in mutual fund asset class.
The monthly systematic investment plan (SIP) contribution also declined in April 2022 and figures came in at Rs 11,860 crore as against Rs 12,330 crore in the previous month.
The plus point here? The number of SIP accounts stood at an all-time high in April at 53.9 m against the previous high of 52.7 m scaled in March this year.
Inflows of April 2022 pushed the net AUMs for the industry 17% higher to Rs 38.03 tn.
April 2022 was the 14th straight month of inflows.
If we see category wise, the selling pressure in debt segment continued. This is because rising interest rates and rising bond yields drive investors away from duration products of mutual funds.
Short-duration debt funds and banking & PSU debt funds saw net outflows of Rs 4,450 crore and Rs 3,100 crore, respectively.
Overall, debt funds saw net inflows as compared to net outflows in March 2022.
The talk of the town this time were gold exchange traded funds (ETFs). Gold ETFs saw net inflows of Rs 1,100 crore compared to Rs 210 crore in the previous month.
This is the highest net inflow amount in gold ETFs registered after the inflows of Rs 1,480 crore in February 2020.
Investors went shopping for gold as after the Russia-Ukraine war broke out, gold prices have been on an uptrend.
Also, uncertainty in equity markets due to the war and other concerns turned out to be the prime factors pushing the yellow metal higher. Although it has become quite volatile in recent days.
Let's look at the stocks that mutual funds traded the most during this period…
Top Stocks Sold by Mutual Funds in April 2022
Largecaps: Indian mutual funds trimmed their positions in largecap stocks such as ICICI Prudential Life Insurance, L&T Infotech, Jubilant Foodworks, Petronet LNG and Vedanta.
Midcaps: From the midcap space, mutual funds offloaded Escorts, Aditya Birla Sun Life AMC, and Syngene International.
Smallcaps: Indiabulls Housing Finance, Motherson Sumi Wiring, RBL Bank, and Firstsource Solutions saw maximum selling by MFs from the smallcap space in April 2022.
Indiabulls Housing shares in particular were offloaded by many mutual funds.
Top Stocks Bought by Mutual Funds in April 2022
Largecaps: Coming to buying, NTPC, Coal India, Indus Towers, and Gail among other largecaps, witnessed massive inflows.
Midcaps: From the midcap space, fund managers loaded up shares of Vodafone Idea, Ruchi Soya, Zee Entertainment, Bandhan Bank, and Canara Bank.
They also bought Escorts and Hindustan Aeronautics.
Smallcaps: Intellect Design, La Opala RG, and Navin Fluorine were the top smallcap buys.
Top Equity Mutual Funds in April 2022
Here is the list of top 10 mutual fund houses as per their equity asset under management (AUM) as of April 2022.
What India's Top Mutual Funds Bought and Sold in April 2022
• SBI Mutual Fund
India's largest equity fund held Rs 3,95,400 crore in equities as of April 2022.
The top four equity holdings of the fund include Reliance Industries, HDFC Bank, ICICI Bank, and Infosys.
Here's what SBI Mutual Fund bought and sold in April 2022.
• ICICI Prudential Mutual Fund
ICICI Prudential Mutual Fund stands as the second largest equity fund with Rs 2,14,000 crore in equities as of April 2022. The same figure in the month of March 2022 was Rs 2,13,200 crore.
The top three equity holdings of ICICI Prudential Mutual Fund include ICICI Bank, Infosys, and HDFC Bank.
Here's what the fund bought and sold in April 2022.
ICICI mutual fund appears to be doing a lot of things differently. In March 2022, it went on a shopping spree and added as many as 22 new companies to its kitty. Though the amount invested in most of them is minimal.
This time around, it did not completely sell any of its holdings. In March 2022, the fund did not shy away and exited 11 companies in total.
• HDFC Mutual Fund
Following ICICI Prudential Mutual Fund we have HDFC Mutual Fund with Rs 1,88,900 crore in equities as of April 2022.
The top five equity holdings of the fund include ICICI Bank, State Bank of India, HDFC Bank, Infosys, and Reliance Industries. It also has a good exposure to L&T, ITC and NTPC.
Here's what HDFC Mutual Fund bought and sold in April 2022.
Despite the hawkish US Fed stance, rising inflation, crude oil concerns and the Russia-Ukraine war, retail investors' confidence in the India growth story remains intact.
How the mutual fund buying and selling trend pans out in the month of May 2022 remains to be seen.
We will keep you updated on all the developments from this space.
Since you're interested in what mutual funds are buying and selling, check out Equitymaster's Powerful Stock Screener.
This tool tracks the stocks recently bought and sold by mutual funds.
PS: The above piece relies on data from PersonalFN. PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)