Mutual funds are betting heavily on these stocks; 22 surge over 50% in one year

Ritesh Presswala Moneycontrol News

Indian equities have been riding high for an extended period now backed by incessant inflows. But what is interesting is this rally was supported a little more by domestic mutual funds than foreign institutional investors (FIIs). In FY2017, net buying by domestic mutual funds was at Rs 54,734 crore, compared to Rs 53,696 crore invested by FIIs.

The obvious question then is where these domestic funds invested and how the stocks in their portfolio fared. To understand this, Moneycontrol picked up few stocks in which MFs had been increasing stake over the last four quarters, and a Capitaline shareholding data check as at end of March 2017 suggested 55 of the BSE 500 companies saw an increase in MF stake.

More importantly, MFs' favourite list of stocks gave handsome return in last 1 year, with 22 stocks returning over 50 percent. In fact, only 8 stocks gave negative returns.