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Mirae Asset, with Rs 70,000 cr in AUM, raises stake in banks: ICICI, HDFC Bank among top 10 holdings

In a period of pandemic-driven volatility, the AMC’s top stock holdings include companies like HDFC Bank, ICICI Bank, Infosys, RIL, Axis Bank, TCS, Maruti Suzuki, and Dr Reddy’s Laboratories; firm eyes under-penetrated sectors

June 22, 2021 / 11:06 AM IST

Global investments company, Mirae Asset, which has more than Rs 70,000 crore of equity assets under management (AUM), is on an upswing.

It has increased its stake in public sector undertakings (PSUs) as well as private banks in May, along with consumer durables, insurance, NBFCs (non-banking financial companies), as well as technology sectors, data from Motilal Oswal showed.

Mirae AMC (asset management company) increased allocation to private banks, in which the AMC has already allocated maximum weightage of more than 20 percent, followed by sectors such as PSU banks, consumer durables, insurance and NBFCs, where the allocation is less than 5 percent.

The fund manager at Mirae AMC is of the view that there are plenty of growth opportunities, and the idea is to increase allocation towards under-penetrated sectors.

“We are invested in businesses that have a healthy growth outlook and have robust business models. The firms we have chosen in the sectors mentioned above meet that criterion. However, we are overall underweight PSU Banks,” Gaurav Misra, Co-Head, Equities, Mirae Asset Investment Managers said.

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He added: “We believe India offers a reasonably long period of growth in many under-penetrated sectors - retail finance, mortgages, life/general insurance and various consumer discretionary sectors - white goods, auto’s, etc. We are represented in such sectors through our preferred firms.”

During the pandemic, the near-term fear and uncertainty were projected into longer periods. Price correction, on some occasions, was more than warranted by the near-term hit to earnings.

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In this period of volatility, Mirae AMC increased its holdings in some of the sectors.

In terms of stocks, the top holdings of the AMC include companies like HDFC Bank, ICICI Bank, Infosys, RIL, Axis Bank, TCS, Maruti Suzuki, and Dr Reddy’s Laboratories.

The AMC bought additional shares of HDFC Bank, RIL, Mphasis, HCL Technologies, SBI Life, JK Cements, Maruti Suzuki, and Axis Bank, data from Motilal Oswal showed.

Where is the market headed?

When asked where the market is headed, Misra was positive on the back of a healthy corporate earnings outlook for the next few years, at least.

“Global commodities are providing a near-term tailwind to earnings through the metal sector. Additionally, we believe India’s structural growth outlook remains robust and has not been majorly impaired by the pandemic,” he suggested.

However, Misra cautioned that the current valuations are ahead of averages and there is scope of volatility emanating from global central bank communications as well as unanticipated consequences of both monetary and fiscal policy action in the West and China.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Jun 22, 2021 10:11 am

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