13 midcap stocks that are most shunned by active mutual fund managers

Fund managers of the actively managed mutual fund schemes take into account various factors and parameters while selecting stocks. Companies that lack a strong financial record, good management quality, scalability of business and an attractive valuation rarely find a place in the portfolio of mutual fund schemes. There are many stocks that are classified as midcap by industry body Association of Mutual Funds in India (AMFI) are not part of the portfolio of many actively managed schemes. AMFI has classified stocks that are ranked from 101 to 250 companies in terms of full market capitalisation as midcaps. On the other hand, the most preferred midcap stocks are Cummins India, Crompton Greaves Consumer Electricals and The Federal Bank that were held by 129, 129 and 126 actively managed schemes, respectively (from a total of 564 active schemes) as of May 2023. The following are the top midcap stocks (as defined by AMFI) that are either totally ignored or least favoured by active mutual fund managers. Only actively managed equity funds and hybrid funds (564 schemes) were considered for the study. Arbitrage funds and passive funds (index funds and exchange-traded funds) were excluded. Data as of May 31, 2023. Source: ACEMF.

Indian Overseas Bank
Total number of active schemes that held the stock as of May 30, 2023: Nil
MFs’ investment value: Nil
BSE Full M-CAP as on July 7, 2023: Rs 49,940 crore

UCO Bank
Total number of active schemes that held the stock as of May 30, 2023: Nil
MFs’ investment value: Nil
BSE Full M-CAP as on July 7, 2023: Rs 34,421 crore

Vodafone IDEA
Total number of active schemes that held the stock as of May 30, 2023: Nil
MFs’ investment value: Nil
BSE Full M-CAP as on July 7, 2023: Rs 36,266 crore

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Central Bank of India
Total number of active schemes that held the stock as of May 30, 2023: Nil
MFs’ investment value: Nil
BSE Full M-CAP as on July 7, 2023: Rs 26,832 crore

Punjab & Sind Bank
Total number of active schemes that held the stock as of May 30, 2023: Nil
MFs’ investment value: Nil
BSE Full M-CAP as on July 7, 2023: Rs 22,420 crore

Rajesh Exports
Total number of active schemes that held the stock as of May 30, 2023: Nil
MFs’ investment value: Nil
BSE Full M-CAP as on July 7, 2023: Rs 15,560 crore

See here: AMFI reclassification: Smallcap stocks that got upgraded to midcaps. Do you own them?

Fertilizers and Chemicals Travancore
Total number of active schemes that held the stock as of May 30, 2023: Nil
MFs’ investment value: Nil
BSE Full M-CAP as on July 7, 2023: Rs 30,396 crore

Bank of Maharashtra
Total number of active schemes that held the stock as of May 30, 2023: Nil
MFs’ investment value: Nil
BSE Full M-CAP as on July 7, 2023: Rs 22,646 crore

General Insurance Corporation of India
Total number of active schemes that held the stock as of May 30, 2023: 1
MFs’ investment value: Rs 31 crore
BSE Full M-CAP as on July 7, 2023: Rs 32,307 crore

Read here: Smallcap MFs outshine: Top schemes surge up to 12 times in 10 years

Indus Towers
Total number of active schemes that held the stock as of May 30, 2023: 1
MFs’ investment value: Rs 15 crore
BSE Full M-CAP as on July 7, 2023: Rs 44,129 crore

JSW Energy
Total number of active schemes that held the stock as of May 30, 2023: 1
MFs’ investment value: Rs 5 crore
BSE Full M-CAP as on July 7, 2023: Rs 50,442 crore

Read here: Cautious of market highs, these large-caps exit MF portfolio

The New India Assurance Company
Total number of active schemes that held the stock as of May 30, 2023: 1
MFs’ investment value: Rs 45 crore
BSE Full M-CAP as on July 7, 2023: Rs 19,528 crore

Yes Bank
Total number of active schemes that held the stock as of May 30, 2023: 2
MFs’ investment value: Rs 18 crore
BSE Full M-CAP as on July 7, 2023: Rs 50,178 crore

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