Fund managers raise 2-5% stake in 21 companies in BSE 500 index; do you own any?

The Average Assets Under Management (AAUM) of the Indian Mutual Fund Industry rose from Rs 33 lakh crore for the month of June 2021 to over Rs 37 lakh crore at the end of September.

Fund managers mobilized nearly Rs 40,000 crore from the July-September period under the growth and equity-oriented schemes, in which they raised stake in more than 200 companies in the S&P 500 index.

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Out of 200 companies, in which fund managers raised stake sequentially, 21 of those saw a quarter-on-quarter change of 2-5 per cent.

The companies that remained fund managers' favourite included Minda Industries, Escorts, RBL Bank, Bata India, MCX, Can Fin Homes, and Equitas Holdings.

Most of the companies are in the small and midcap space from cyclicals, auto, consumption as well as specialty chemical space, suggested experts. Most fund managers are increasing exposure to companies that are likely to benefit the most from the domestic economic revival theme.

"We feel sectors geared to domestic economic revival should do well in the coming years. Thus, we are bullish on early and mid-cyclical such as financials, auto and auto ancillaries, consumer discretionary, construction and capital goods/industrials," George Heber Joseph, CEO-CIO, ITI Mutual Fund, said.

"Within the defensive sectors, we are bullish on pharmaceuticals as compared to consumer staples. We are underweighting on the metals, IT and speciality chemicals sectors as we feel valuations discount most of the positives and leave little room for error," he said.

There are more than 33 stocks in which fund managers increased stake by 1-2 per cent on a QoQ basis that include names like Equitas, NMDC, Tata Chemicals, WABCO, Lupin, Amber Enterprises, SBI Cards, M&M, Oberoi Realty, and Adani Ports.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)