Top stocks mutual funds are buying with your money

The data showed that key stock additions by mutual fund houses were in IndusInd Bank, Reliance Industries (RIL) and Infosys, whereas they trimmed holdings in Axis Bank, Coal India, Bharti Airtel and HCL Tech.

The key additions in midcap stocks (between ₹10k crore to ₹40 k crore market cap) were Tata Chemical, ZEE Entertainment Enterprises (Zee), Gland Pharma and Delhivery, whereas, the key reductions were NMDC, Voltas, Federal Bank, and Indraprastha Gas

On the other hand, top smallcap stocks (below ₹10 k crore market cap) additions were RBL Bank, Electronics Mart and Karur Vysya Bank, and, key reductions were Rites, Welspun Corp, Metropolis Health, and Indiabulls Real Estate, the data on MF holdings by Edelweiss added.

Meanwhile, investors have been betting big on systematic investment plans or SIPs to generate long-term wealth, with monthly flows in the mutual fund industry through the route rising to an all-time high of ₹13,040 crore in October. 

Equity mutual funds attracted ₹9,390 crore in the previous month, marking the 20th straight month of inflows into equity schemes. Equity schemes have been witnessing net inflow since March 2021. Before this, these schemes had witnessed outflows for eight months from July 2020 to February 2021, losing ₹46,791 crore.

The inflow pushed the Assets Under Management (AUM) of the industry to ₹39.5 lakh crore at the end of October, from ₹38.4 lakh crore at the end of September. Mutual fund folios, which have been touching all-time highs since the last two months, reached a fresh high of 13.91 crore in October.

“Markets continue to react to the global factors and domestic rate hikes. However, mutual fund investors have shown resilience and continue to invest in SIPs, with consistent contribution month on month. There is growth in overall equity AUM and folios too,” said N S Venkatesh, chief executive of Association of Mutual Funds in India (AMFI).