Mutual fund managers continued to corner stocks of early stage companies in September, with Aditya Birla Sun Life AMC and Vijaya Diagnostic being part of the portfolios of several mutual fund companies. According to data from Edelweiss Alternative Research, fund managers deployed Rs 15 billion in IPOs, with the bulk of it going to Vijaya Diagnostic. The fund houses have invested nearly Rs 8 billion in the IPO of Vijaya Diagnostics. In addition, mutual funds have seen their weight increase in public services, pushing it to a seven-month high, while decreasing the weight of the telecommunications sector and private banks, said analysts at Motilal Oswal.
What stocks mutual funds bought in September
SBI AMC: Aditya Birla Sun Life AMC was the best buy for the SBI mutual fund, putting in Rs 80 crore in the newly listed company, according to data provided by ICICI Securities. AMI Organics was the second most purchased share by the fund company, injecting Rs 53 crore into the stock. Other shares purchased by SBI Mutual Fund include Jindal Steel and Power and Steel Authority of India, bringing the value of both in the portfolio to nearly Rs 80 crore, followed by Max Healthcare Institute.
ICICI prudential mutual fund: The fund house bought shares of Aditya Birla Sun Life AMC during the previous month, bringing the value of the shares in its portfolio to Rs 100 crore. The second most purchased stock by ICICI Prudential was the Indian Energy Exchange. Sonata Software, SBI Cards and Payment Services and Manappuram Finance were the other three most bought stocks in September.
HDFC mutual fund: Aditya Birla Sun Life was the best bet made by the fund company in September, adding 18 lakh shares of the company worth Rs 102 crore, according to ICICI Securities. The second most purchased title by HDFC AMC was Zee Entertainment Enterprises. Caught between investors and developers, the media giant increased its weight in HDFC Mutual Fund’s portfolio to Rs 190 crore from Rs 46 crore earlier. Bharat Heavy Electricals, Adani Enterprises and Escorts were the other stocks that saw the biggest increase in weight.
Aditya Birla Sun Life AMC: As part of its IPO, the fund managers of Aditya Birla Sun Life AMC increased their holdings in HDFC AMC. The market value of HDFC AMC shares held by The Fund House at the end of September was Rs 60 crore. Oil & Natural Gas Corporation, Oracle Financial Services Software, Bajaj Auto and Canara Bank were the other stocks where Aditya Birla Suna Life AMC increased its stake.