Moneycontrol
Jul 15, 2017 09:33 AM IST | Source: Moneycontrol.com

Top 14 stocks which some MF bought for the first time in June; do you hold any?

After one way rally on D-Street so far in the year 2017 retail investors preferred to book some profits off the table from Gold ETFs, liquid funds etc. as the asset under management (AUM) of the mutual fund industry dipped slightly for the month of June.

Top 14 stocks which some MF bought for the first time in June; do you hold any?

Kshitij Anand

Moneycontrol News

After one way rally on D-Street so far in the year 2017 retail investors preferred to book some profits off the table from Gold ETFs, liquid funds etc. as the asset under management (AUM) of the mutual fund industry dipped slightly for the month of June.

The total AUM of the mutual fund industry marginally decreased by 0.4 percent or Rs 7,684 crore to Rs 18.66 lakh crore in June 2017.

There were certain categories of funds saw an increase which includes themes like balanced, ELSS, equity, GILT, infrastructure debt & other ETF’s while 4 categories witnessed decline which includes themes like FOF Overseas, Income, Gold ETF’s & Liquid Fund.

However, on a quarter-on-quarter (QoQ) basis, total AUM of Mutual Fund Industry increased by 8.1 percent (March 17- June 17).

The AUM of Equity Fund increased by 1.3 percent or by Rs 6,899 crore to Rs 5.25 Lakh crore in June 2017 on a MoM basis. The domestic mutual funds turned out to be net buyers in equity in June 2017.

They bought equities in 21 trading session worth Rs 9,106 crore, as against net buying of Rs 9,357 crore in May 2017. Mutual funds were net buyers in equity in 20 trading sessions and net sellers in 1 sessions, said an IDBI Capital report.

However, there were certain stocks which MFs added for the first time in their list which includes names like Eris Lifesciences, AU Small Finance, Tejas Network, DFM Foods, Star Cement, GTPL Hathway, Lux Industries, Dishman Carbogen, and Just Dial Ltd among others.

Surprisingly many of the newly listed companies made their way into fund managers buying list which include names like Eris Lifesciences, AU Small Finance as well as GTPL Hathway.

Topping the list was Eris Lifesciences in which fund managers across AMCs include Birla, IDFC, Motilal Oswal, and SBI Mutual Fund added the stock worth Rs751 crore, said the IDBI Capital report.

AU Finance which rose over 50 percent on the listing day itself managed to impress fund managers as funds across AMCs such as Birla, BNP, DSP, ICICI, IDFC, Kotak, MOSt, Reliance, SBI Sundaram, and UTI added the stocks in their funds. Total investment by fund managers in AU Finance was nearly Rs 190 crores, said the IDBI Capital report.

MF

The foreign institutional investors (FII) were also net buyers in equities for the month of June 2017. FII were net buyers in equities in 21 trading session worth Rs 3,939 crore compared to net buying of Rs 9,956 crore in May 2017.

FII were net buyers in equity in 9 trading sessions and net sellers in 12 sessions. The net buying in equities was recorded highest at Rs 4,909.37 crore as on 13 June 2017 while net selling recorded at Rs 3,133.63 as on 06 June 2017.

Market not that expensive, continue with SIPs:

The valuation of Indian market might look a tad expensive at current levels when compared to long term averages, but that should not be the reason to cash out on your systematic investment plans, suggest experts.

Retail investors who have already invested via SIPs in markets should continue with their investment irrespective of valuations and add more funds when there is a considerable dip in the market.

On trailing 12 months basis, Nifty50 is trading at P/B of 3.03x and P/E of 23.7x, which could not be considered as expensive valuation.

“Though, even this valuation is not cheap; however, Indian market deserves such valuation due to its strong outlook,” Tushar Pendharkar, Head of Research at Right Horizons PMS told Moneycontrol.

“In addition, instead of investing directly in equities, retail Indian investors are going through SIP route and thus MFs have enough money to support any fall in the Indian market,” he said.
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