This Article is From Dec 17, 2021

Top 5 Stocks Mutual Funds Bought And Sold In November 2021

A look at what India's top equity mutual funds bought and sold in November 2021.

Top 5 Stocks Mutual Funds Bought And Sold In November 2021

Inflows into equity mutual funds rose to Rs 11,620 crore in November this year.

Even though markets were volatile in November 2021, it did not stop equity mutual funds from attracting investors.

Net inflows into equity mutual funds surged to a 4-month high in November 2021 even as there's uncertainty surrounding the new Covid variant Omicron.

Inflows into equity mutual funds rose to Rs 11,620 crore in November 2021.

This marks the 9th consecutive month of net inflows. Equity mutual funds have been witnessing inflows since March this year on the back of a strong rally in the market.

The inflows for November can be attributed to the correction we saw in the previous few weeks. According to experts, the correction has provided yet another opportunity to invest.

The industry's assets under management (AUM) grew to Rs 38,45,000 crore in November, their highest levels ever with debt funds garnering Rs 14,900 crore.

Even the redemption numbers were low at Rs 17,480 crore compared to Rs 23,460 crore in October 2021 which just shows that investors found the correction a good entry point.

Investors continued to stick to their process by following their SIPs. Monthly inflows through the systematic investment plans (SIP) route reached a new high to over Rs 11,000 crore.

Since the start of this fiscal, monthly SIP flows have shown a secular rise. From Rs 8,570 crore in April 2021, the figures have now rose to Rs 11,000 crore.

The cumulative inflows from SIPs have now crossed Rs 1,00,000 crore in a year for the first time. The previous record SIP flow in a calendar year was Rs 98,610 crore in 2019.

Indian equities' record run is finding strong support from retail mutual fund investors. SIPs are the preferred mode of investment. As markets have become volatile, investors have been encouraged to turn towards SIPs.

Let us take a look at which stocks mutual funds traded in the most during this period …

Top Stocks Sold by Mutual Funds in November 2021

Largecaps: Indian mutual funds trimmed their positions in largecap stocks such Vedanta, Zomato, Bosch, and GAIL (India).

Heavy selling was also seen in Apollo Hospital Enterprises

Midcaps: From the midcap space, mutual funds offloaded IRCTC, Tata Power, BHEL, and Macrotech Developers. All these stocks have seen a run-up in their share price in recent months.

Smallcaps: BSE, Railtel Corporation of India, Phillips Carbon Black and PNB Housing Finance saw maximum selling by MFs from the smallcap space in November 2021.

Top Stocks Bought by Mutual Funds in November 2021

Largecaps: Coming to buying, Yes Bank, Berger Paints, Bandhan Bank, and Eicher Motors from the largecap space witnessed massive inflows.

Midcaps: From the midcap space, fund managers loaded up shares of Vodafone Idea, JSW Energy, Laurus Labs, Alembic Pharma, Zensar Tech, and Devyani International.

Smallcaps: Indiabulls Housing Finance, Granules India, Thangamayil Jewellery, and Welspun Corp were the top smallcap buys.

Top Equity Mutual Funds in November 2021

Here is the list of top 10 mutual fund houses as per their equity asset under management (AUM) as on November 2021.

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What India's Top Mutual Funds Bought and Sold in November 2021

• SBI Mutual Fund

India's largest equity fund held Rs 3,57,600 crore in equities as of November 2021. 

The top four equity holdings of the fund include HDFC Bank, Reliance Industries, ICICI Bank, and Infosys.

Here's what SBI Mutual Fund bought and sold in November 2021.

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Interestingly, SBI Mutual Fund did not exit any of its holding completely.

• ICICI Prudential Mutual Fund

ICICI Prudential Mutual Fund stands as the second largest equity fund with Rs 1,99,500 crore in equities as of November 2021. The same figure in the month of October was Rs 2,02,000 crore.

The top three equity holdings of ICICI Prudential Mutual Fund include ICICI Bank, Infosys, and Bharti Airtel.

Here's what the fund bought and sold in November 2021.

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ICICI Mutual fund added as many as 34 new stocks to its portfolio. Although the amount invested was kept to a minimal.

• HDFC Mutual Fund

Following ICICI Prudential Mutual Fund we have HDFC Mutual Fund with Rs 1,74,100 crore in equities as of November 2021.

The top five equity holdings of the fund include ICICI Bank, State Bank of India, Infosys, HDFC Bank, and L&T.

Here's what HDFC Mutual Fund bought and sold in November 2021.

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As Co-head of Research at Equitymaster Rahul Shah rightly says, it's always better to take only 50% exposure and keep the remaining in FDs or cash. This strategy would have rightly come to your rescue in November.

Investors who had money waiting on the sidelines used the market correction as an opportunity and allocated towards equity mutual funds.

In November, mutual funds increased exposure in defensive companies. This is because the uncertainly over the new variant Omicron has added to the volatility.

Mutual funds also lapped up companies which performed well on the earnings front.

Apart from that, fund managers continued the trend and lapped up shares of newly listed companies. According to a report, mutual funds invested Rs 4,050 crore in newly listed companies in the month of November 2021. 

Out of all, PB Fintech (PolicyBazaar) saw the highest mutual fund investment at Rs 1,350 crore. FSN Ecommerce Ventures (Nykaa), and One 97 Communications (Paytm) also received good inflows.

Mutual funds going big on IPOs is the trend we are seeing since months now. In some earlier cases, like Zomato, Sona Comstar, and Nuvoco Vistas, they invested 20-40% of the issue size.

How the mutual fund buying and selling trend pans out in the month of December remains to be seen. 

We will keep you updated on all the developments from this space.

Stay tuned.

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 by mutual funds along with the stocks recently sold by them.
Happy investing!

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.)

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