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Auto stocks hitch a ride on demand surge to be mutual fund favourites

The auto sector category has raced to the top of the mutual fund return charts over the last 12 months. We look at the top picks added by schemes in the category recently

August 07, 2022 / 09:06 AM IST
Stocks in the automobile sector have done well over the last few months and sector barometer BSE Auto index hit its all-time high on July 22, driven by a strong demand outlook. The Net Asset Value (NAV) of the UTI Transportation and Logistics Fund, the only scheme that invests majorly in auto sector stocks, has inched up notably and outperformed all other equity fund categories over the last 12 months.
Stocks in the automobile sector have done well over the last few months and the sector barometer BSE Auto index hit an all-time high on July 22, driven by a strong demand outlook. The Net Asset Value (NAV) of the UTI Transportation and Logistics Fund, the only scheme that invests majorly in auto sector stocks, has inched up notably and outperformed all other equity fund categories over the last 12 months.
Experts attribute global and domestic factors to this performance. “The auto sector was on the backfoot last year as supply chain issues and high metal prices impacted the overall industry. When the broader market corrected this March, it turned positive for the sector due to factors benefiting the domestic automobile space,” says Tejpal Jain, CFO and Investment head of Suashish Diamonds Limited. “These factors include expectations of improving demand, easing supply-chain constraints and correction in steel prices due to the imposition of export duty. New models launched by many larger players also drove the turnaround.” We take a look at the top auto sector stocks that were added to the portfolios of actively managed equity mutual funds over the last three months. The data is as of June 30, 2022. Source: ACEMF.
Experts attribute global and domestic factors to this performance. “The auto sector was on the backfoot last year as supply chain issues and high metal prices impacted the overall industry. When the broader market corrected this March, it turned positive for the sector due to factors benefiting the domestic automobile space,” says Tejpal Jain, CFO and Investment head of Suashish Diamonds Limited. “These factors include expectations of improving demand, easing supply-chain constraints and correction in steel prices due to the imposition of export duty. New models launched by many larger players also drove the turnaround.” We take a look at the top auto sector stocks that were added to the portfolios of actively managed equity mutual funds over the last three months. The data is as of June 30, 2022. Source: ACEMF.
Mahindra & Mahindra Number of schemes that added the stock: 65 Total number of schemes holding the stock: 193 Over the last three months, shares of Mahindra & Mahindra were added by schemes such as Union Value Discovery, SBI Magnum Equity ESG, Invesco India Flexi Cap, PGIM India Balanced Advantage and Axis Growth Opp Fund.
Mahindra & Mahindra
Number of schemes that added the stock: 65
Total number of schemes holding the stock: 193
Over the last three months, shares of Mahindra & Mahindra were added by schemes such as Union Value Discovery, SBI Magnum Equity ESG, Invesco India Flexi Cap, PGIM India Balanced Advantage and Axis Growth Opp Fund.
Maruti Suzuki India Number of schemes that added the stock: 37 Total number of schemes holding the stock: 240 ICICI Pru Retirement Fund-Hybrid Aggressive, ICICI Pru Child Care Fund-Gift, Nippon India Quant, L&T Equity Savings, Sundaram Focused Fund and Axis Bluechip Fund were among the schemes that added shares of Maruti Suzuki, India’s largest carmaker, in the last three months.
Maruti Suzuki India
Number of schemes that added the stock: 37
Total number of schemes holding the stock: 240
ICICI Pru Retirement Fund-Hybrid Aggressive, ICICI Pru Child Care Fund-Gift, Nippon India Quant, L&T Equity Savings, Sundaram Focused Fund and Axis Bluechip Fund were among the schemes that added shares of Maruti Suzuki, India’s largest carmaker, in the last three months.
TVS Motor Company Number of schemes that added the stock: 28 Total number of schemes holding the stock: 94 Shares of TVS Motor Company were added afresh by schemes such as SBI Multicap, JM Focused, IIFL Quant, PGIM India Small Cap, Mahindra Manulife Top 250 Nivesh Yojana and Franklin India Opportunities Fund.
TVS Motor Company
Number of schemes that added the stock: 28
Total number of schemes holding the stock: 94
Shares of TVS Motor Company were added afresh by schemes such as SBI Multicap, JM Focused, IIFL Quant, PGIM India Small Cap, Mahindra Manulife Top 250 Nivesh Yojana and Franklin India Opportunities Fund.
Tata Motors Number of schemes that added the stock: 23 Total number of schemes holding the stock: 163 Taurus Infrastructure, DSP Top 100 Equity, Franklin India Bluechip, IDFC Multi Cap, Nippon India Growth and Aditya Birla SL Tax Plan added the stock to their portfolios in the last three months.
Tata Motors
Number of schemes that added the stock: 23
Total number of schemes holding the stock: 163
Taurus Infrastructure, DSP Top 100 Equity, Franklin India Bluechip, IDFC Multi Cap, Nippon India Growth and Aditya Birla SL Tax Plan added the stock to their portfolios in the last three months.
Hero MotoCorp Number of schemes that added the stock: 21 Total number of schemes holding the stock: 86 Among others, shares of Hero MotoCorp were newly added by SBI Consumption Opp, Mahindra Manulife Rural Bharat and Consumption Yojana, Nippon India Flexi Cap, Tata India Consumer, ICICI Pru MNC and Tata Focused Equity Fund.
Hero MotoCorp
Number of schemes that added the stock: 21
Total number of schemes holding the stock: 86
Among others, shares of Hero MotoCorp were newly added by SBI Consumption Opp, Mahindra Manulife Rural Bharat and Consumption Yojana, Nippon India Flexi Cap, Tata India Consumer, ICICI Pru MNC and Tata Focused Equity Fund.
Escorts Kubota Number of schemes that added the stock: 20 Total number of schemes holding the stock: 42 HDFC Focused 30, Tata India Consumer, Union Small Cap, Aditya Birla SL Pure Value and Aditya Birla SL Infrastructure Fund bought shares of the agricultural machinery equipment manufacturer in the last three months.
Escorts Kubota
Number of schemes that added the stock: 20
Total number of schemes holding the stock: 42
HDFC Focused 30, Tata India Consumer, Union Small Cap, Aditya Birla SL Pure Value and Aditya Birla SL Infrastructure Fund bought shares of the agricultural machinery equipment manufacturer in the last three months.
Eicher Motors Number of schemes that added the stock: 19 Total number of schemes holding the stock: 72 The auto ancillaries company’s stock was newly added by SBI Magnum Equity ESG, Sundaram Rural and Consumption, PGIM India Balanced Advantage, PGIM India Flexi Cap and Motilal Oswal Equity Hybrid Fund.
Eicher Motors
Number of schemes that added the stock: 19
Total number of schemes holding the stock: 72
The auto ancillaries company’s stock was newly added by SBI Magnum Equity ESG, Sundaram Rural and Consumption, PGIM India Balanced Advantage, PGIM India Flexi Cap and Motilal Oswal Equity Hybrid Fund.
Endurance Technologies Number of schemes that added the stock: 17 Total number of schemes holding the stock: 43 Schemes such as SBI Multicap, Baroda BNP Paribas Business Cycle, UTI Core Equity, LIC MF Infra and UTI Transportation & Logistics Fund bought shares of Endurance Technologies in the last three months.
Endurance Technologies
Number of schemes that added the stock: 17
Total number of schemes holding the stock: 43
Schemes such as SBI Multicap, Baroda BNP Paribas Business Cycle, UTI Core Equity, LIC MF Infra and UTI Transportation & Logistics Fund bought shares of Endurance Technologies in the last three months.
Tube Investments of India Number of schemes that added the stock: 9 Total number of schemes holding the stock: 56 Shares of the cycle manufacturer were newly added by Motilal Oswal Flexi Cap, UTI Focused Equity, Shriram Flexi Cap and SBI Large & Midcap Fund.
Tube Investments of India
Number of schemes that added the stock: 9
Total number of schemes holding the stock: 56
Shares of the cycle manufacturer were newly added by Motilal Oswal Flexi Cap, UTI Focused Equity, Shriram Flexi Cap and SBI Large & Midcap Fund.
UNO Minda Number of schemes that added the stock: 8 Total number of schemes holding the stock: 89 Schemes such as ICICI Pru Manufacturing, ICICI Pru Retirement Fund-Hybrid Aggressive, Motilal Oswal Equity Hybrid and SBI Flexicap Fund added shares of the mid-sized auto ancillary company afresh in the last three months.
UNO Minda
Number of schemes that added the stock: 8
Total number of schemes holding the stock: 89
Schemes such as ICICI Pru Manufacturing, ICICI Pru Retirement Fund-Hybrid Aggressive, Motilal Oswal Equity Hybrid and SBI Flexicap Fund added shares of the mid-sized auto ancillary company afresh in the last three months.
ZF Commercial Vehicle Control Systems India Number of schemes that added the stock: 6 Total number of schemes holding the stock: 54 Invesco India Smallcap, Canara Rob Small Cap, Axis Growth Opp and Sundaram Multi Cap Fund added the stock afresh in the last three months.
ZF Commercial Vehicle Control Systems India
Number of schemes that added the stock: 6
Total number of schemes holding the stock: 54
Invesco India Smallcap, Canara Rob Small Cap, Axis Growth Opp and Sundaram Multi Cap Fund added the stock afresh in the last three months.
Bosch  Number of schemes that added the stock: 5  Total number of schemes holding the stock: 39  Shares of Bosch were newly added by schemes such as Invesco India Smallcap, Canara Rob Small Cap, Axis Growth Opp, Mahindra Manulife Large Cap Pragati Yojana and Sundaram Multi Cap Fund.  Disclaimer: The views and investment tips of 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.
Bosch
Number of schemes that added the stock: 5
Total number of schemes holding the stock: 39
Shares of Bosch were newly added by schemes such as Invesco India Smallcap, Canara Rob Small Cap, Axis Growth Opp, Mahindra Manulife Large Cap Pragati Yojana and Sundaram Multi Cap Fund.
Disclaimer: The views and investment tips of 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.
Dhuraivel Gunasekaran
first published: Jul 28, 2022 10:14 am
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