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Looking for long-term bets? Here’s what MFs following ‘buy and hold’ approach bought

Since mutual fund managers advocate long-term investing, it pays if such funds hold on to their underlying shares for the long-term. Funds with a low portfolio turnover do just that. And here’s what they bought recently.

December 03, 2022 / 06:39 PM IST
Many active fund managers prefer a ‘buy and hold’ approach in managing their stock portfolio. They identify stocks that have the potential to grow and reward investors in the long run. These stocks are sometimes held in their portfolio for years together. Past data shows that many such stocks demonstrated consistent growth in later years, turned multibaggers. Moneycontrol shortlisted a list of actively managed equity-related schemes that follow a buy and hold approach based on the Turnover Ratio (TO). TO tells you how frequently the securities within the portfolio are bought and sold in the past one year. For instance, for a scheme with an average of Rs 100 crore in assets under management (AUM), if the fund manager has transacted in securities worth Rs 50 crore, then dividing transaction value by the average AUM gives you the TO at 50 percent. TO is disclosed on monthly basis. Here, we took the average of the TO for the last one year and shortlisted the schemes with the TO of 30% and below; 133 schemes were finally shortlisted. For the purpose of our study, these schemes were considered to be the ones following a buy and hold approach. We, then, identified the below stocks that were most bought by those schemes in the six months ended October 31, 2022. Source: ACEMF.
Many active fund managers prefer a ‘buy and hold’ approach in managing their stock portfolio. They identify stocks that have the potential to grow and reward investors in the long run. These stocks are sometimes held in their portfolio for years together. Past data shows that many such stocks demonstrated consistent growth in later years, turned multibaggers. Moneycontrol shortlisted a list of actively managed equity-related schemes that follow a buy and hold approach based on the Turnover Ratio (TO). TO tells you how frequently the securities within the portfolio are bought and sold in the past one year. For instance, for a scheme with an average of Rs 100 crore in assets under management (AUM), if the fund manager has transacted in securities worth Rs 50 crore, then dividing transaction value by the average AUM gives you the TO at 50 percent. TO is disclosed on monthly basis. Here, we took the average of the TO for the last one year and shortlisted the schemes with the TO of 30% and below; 133 schemes were finally shortlisted. For the purpose of our study, these schemes were considered to be the ones following a buy and hold approach. We, then, identified the below stocks that were most bought by those schemes in the six months ended October 31, 2022. Source: ACEMF.
Zee Entertainment Enterprises Market capitalization type: Mid-cap Schemes (following the buy and hold approach) that newly added the stock: 11 Total schemes (following the buy and hold approach) that currently hold the stock: 26 A sample of schemes that newly added the stock: Tata Large & Mid Cap, Aditya Birla SL India GenNext and HDFC Mid-Cap Opportunities fund
Zee Entertainment Enterprises
Market capitalization type: Mid-cap
Schemes (following the buy and hold approach) that newly added the stock: 11
Total schemes (following the buy and hold approach) that currently hold the stock: 26
A sample of schemes that newly added the stock: Tata Large & Mid Cap, Aditya Birla SL India GenNext and HDFC Mid-Cap Opportunities fund
IndusInd Bank Market capitalization type: Large-cap Schemes that newly added the stock: 8 Total schemes that currently holde the stock: 31 A sample of schemes that newly added the stock: Tata Focused Equity, Canara Rob Value, Aditya Birla SL Tax Relief '96 and HDFC Top 100 Fund
IndusInd Bank
Market capitalization type: Large-cap
Schemes that newly added the stock: 8
Total schemes that currently holde the stock: 31
A sample of schemes that newly added the stock: Tata Focused Equity, Canara Rob Value, Aditya Birla SL Tax Relief '96 and HDFC Top 100 Fund
Bank Of Baroda Market capitalization type: Large-cap Schemes that newly added the stock: 7 Total schemes that currently hold the stock: 28 A sample of schemes that newly added the stock: Kotak India EQ Contra, Kotak Tax Saver, Aditya Birla SL Dividend Yield and NJ Balanced Advantage Fund
Bank Of Baroda
Market capitalization type: Large-cap
Schemes that newly added the stock: 7
Total schemes that currently hold the stock: 28
A sample of schemes that newly added the stock: Kotak India EQ Contra, Kotak Tax Saver, Aditya Birla SL Dividend Yield and NJ Balanced Advantage Fund
Bharat Electronics Market capitalization type: Large-cap Schemes that newly added the stock: 7 Total schemes that currently hold the stock: 49 A sample of schemes that newly added the stock: DSP Flexi Cap, Canara Rob Small Cap and NJ Balanced Advantage Fund
Bharat Electronics
Market capitalization type: Large-cap
Schemes that newly added the stock: 7
Total schemes that currently hold the stock: 49
A sample of schemes that newly added the stock: DSP Flexi Cap, Canara Rob Small Cap and
NJ Balanced Advantage Fund
Eicher Motors Market capitalization type: Large-cap Schemes that newly added the stock: 7 Total schemes that currently hold the stock: 31 A sample of schemes that newly added the stock: Tata Large Cap, LIC MF Tax and Kotak Infra & Eco Reform Fund
Eicher Motors
Market capitalization type: Large-cap
Schemes that newly added the stock: 7
Total schemes that currently hold the stock: 31
A sample of schemes that newly added the stock: Tata Large Cap, LIC MF Tax and Kotak Infra & Eco Reform Fund
Interglobe Aviation Market capitalization type: Large-cap Schemes that newly added the stock: 7 Total schemes that currently hold the stock: 19 A sample of schemes that newly added the stock: ICICI Pru Retirement Fund-Hybrid Cons, Nippon India Value and Aditya Birla SL India GenNext and ICICI Pru Balanced Advantage Fund
Interglobe Aviation
Market capitalization type: Large-cap
Schemes that newly added the stock: 7
Total schemes that currently hold the stock: 19
A sample of schemes that newly added the stock: ICICI Pru Retirement Fund-Hybrid Cons, Nippon India Value and Aditya Birla SL India GenNext and ICICI Pru Balanced Advantage Fund
Hero MotoCorp Market capitalization type: Large-cap Schemes that newly added the stock: 6 Total schemes that currently hold the stock: 23 A sample of schemes that newly added the stock: Kotak India EQ Contra, HDFC Retirement Savings Fund-Equity, Tata Dividend Yield and Kotak Multicap Fund
Hero MotoCorp
Market capitalization type: Large-cap
Schemes that newly added the stock: 6
Total schemes that currently hold the stock: 23
A sample of schemes that newly added the stock: Kotak India EQ Contra, HDFC Retirement Savings Fund-Equity, Tata Dividend Yield and Kotak Multicap Fund
Hindalco Industries Market capitalization type: Large-cap Schemes that newly added the stock: 6 Total schemes that currently hold the stock: 40 A sample of schemes that newly added the stock: UTI Value Opp, Aditya Birla SL Tax, UTI Focused Equity and IDFC Infrastructure Fund
Hindalco Industries
Market capitalization type: Large-cap
Schemes that newly added the stock: 6
Total schemes that currently hold the stock: 40
A sample of schemes that newly added the stock: UTI Value Opp, Aditya Birla SL Tax, UTI Focused Equity and IDFC Infrastructure Fund
NTPC Market capitalization type: Large-cap Schemes that newly added the stock: 6 Total schemes that currently hold the stock: 44 A sample of schemes that newly added the stock: Tata Resources & Energy, SBI Long Term Equity and Nippon India Value Fund
NTPC
Market capitalization type: Large-cap
Schemes that newly added the stock: 6
Total schemes that currently hold the stock: 44
A sample of schemes that newly added the stock: Tata Resources & Energy, SBI Long Term Equity and Nippon India Value Fund
Jubilant FoodWorks Market capitalization type: Mid-cap Schemes that newly added the stock: 5 Total schemes that currently hold the stock: 31 A sample of schemes that newly added the stock: Aditya Birla SL Midcap, Aditya Birla SL Bal Bhavishya Yojna and Axis Midcap Fund
Jubilant FoodWorks
Market capitalization type: Mid-cap
Schemes that newly added the stock: 5
Total schemes that currently hold the stock: 31
A sample of schemes that newly added the stock: Aditya Birla SL Midcap, Aditya Birla SL Bal Bhavishya Yojna and Axis Midcap Fund
Kirloskar Pneumatic Company Market capitalization type: Small-cap Schemes that newly added the stock: 5 Total schemes that currently hold the stock: 9 A sample of schemes that newly added the stock: Tata Business Cycle, L&T Infrastructure, L&T Emerging Businesses and Franklin India Smaller Cos Fund
Kirloskar Pneumatic Company
Market capitalization type: Small-cap
Schemes that newly added the stock: 5
Total schemes that currently hold the stock: 9
A sample of schemes that newly added the stock: Tata Business Cycle, L&T Infrastructure, L&T Emerging Businesses and Franklin India Smaller Cos Fund
Ultratech Cement Market capitalization type: Large-cap Schemes that newly added the stock: 5 Total schemes that currently hold the stock: 52 A sample of schemes that newly added the stock: ICICI Pru Retirement Fund-Hybrid Cons, UTI Focused Equity and Franklin Build India Fund
Ultratech Cement
Market capitalization type: Large-cap
Schemes that newly added the stock: 5
Total schemes that currently hold the stock: 52
A sample of schemes that newly added the stock: ICICI Pru Retirement Fund-Hybrid Cons, UTI Focused Equity and Franklin Build India Fund
Dhuraivel Gunasekaran