10 US stocks that have found favour with domestic equity-oriented mutual funds
US equity markets have been a preferred destination for Indian fund managers looking to diversify their holdings across borders. Currently, there are 44 such schemes that have allocated up to 30 percent of their assets to overseas equities. They have invested either directly in US stocks or indirectly through the FoF route.
US equity markets have been the top choice for Indian fund managers looking to diversify their holdings across borders. The country is home to some of the largest and most iconic technological and other wealth-generating companies with excellent investment prospects. Domestic mutual funds have enabled Indian investors to participate in the growth story of the world’s largest economy. They offer 20 US focused schemes that invest predominantly in the US stocks and also other international funds that allocate a percentage of their assets to US equities. These schemes either invest directly into the US stocks or are fund of funds (FoF).
Apart from these, there are domestic equity-oriented schemes that have a mandate of taking at least a 65 percent exposure to Indian equities, but can also choose to allocate a portion of their portfolios to overseas stocks. Currently, there are 44 such schemes that allocate up to 30 percent of their assets to overseas equities. They have invested either directly in the US stocks or indirectly through the FoF route.
2/12
In February 2022, the Securities and Exchange Board of India (SEBI) asked MFs to stop further investments in foreign stocks. It was to avoid breaching the $7 billion cap for mutual funds to invest in overseas securities and funds, and a separate limit of $1 billion for investing in overseas ETFs. MFs adhered to the regulation and restricted their overseas investments. However, the regulator has allowed mutual funds to invest in foreign stocks as long as there is headroom for fund deployment within the $7 billion overall ceiling and also the individual fund house limit of $1 billion. Here’s a list of top US stocks that domestic equity-oriented mutual funds have added to their portfolios over the last six months (April to September 2024). Only direct equity allocations into US stocks were considered for the study. The portfolios of the underlying funds were not considered. Source: ACEMF and respective company websites. Portfolio data as of September 2024.
3/12
Broadcom Corporation Industry: Semiconductor and infrastructure software solutions No. of domestic equity-oriented schemes that have bought the stock of late: 3 Total no. of domestic equity-oriented schemes that currently hold the stock in their portfolios: 4 Schemes that added the stock to their portfolios recently: DSP Multi Asset Allocation Fund and Axis Innovation Fund
EPAM Systems Inc Industry: Software No. of domestic equity-oriented schemes that have bought the stock of late: 2 Total no. of domestic equity-oriented schemes that currently hold the stock: 7 Schemes that added the stock recently: SBI Flexicap Fund and ICICI Pru Innovation Fund
Nike Inc Industry: Footwear and apparel No. of domestic equity-oriented schemes that have bought the stock of late: 2 Total no. of domestic equity-oriented schemes that currently hold the stock: 2 Schemes that added the stock to their portfolio recently: DSP Value Fund
Amphenol Corp Industry: Industrial products No. of domestic equity-oriented schemes that have bought the stock of late: 1 Total no. of domestic equity-oriented schemes that currently hold the stock: 2 Schemes that added the stock recently: Axis Innovation Fund
7/12
GRAIL Inc Industry: Biotechnology and Healthcare No. of domestic equity-oriented schemes that have bought the stock of late: 1 Total no. of domestic equity-oriented schemes that currently hold the stock: 1 Schemes that added the stock recently: DSP Healthcare Fund
KLA-Tencor Corporation Industry: Semiconductor No. of domestic equity-oriented schemes that have bought the stock of late: 1 Total no. of domestic equity-oriented schemes that currently hold the stock: 2 Schemes that added the stock recently: Axis Growth Opp Fund
Renew Energy Global Industry: Renewable energy No. of domestic equity-oriented schemes that have bought the stock of late: 1 Total no. of domestic equity-oriented schemes that currently hold the stock: 1 Schemes that added the stock to their portfolios recently: SBI Magnum Children's Benefit Fund-Investment Plan
SharkNinja Inc Industry: Consumer electronics No. of domestic equity-oriented schemes that have bought the stock of late: 1 Total no. of domestic equity-oriented schemes that currently hold the stock: 1 Schemes that added the stock to their portfolios recently: Axis Innovation Fund
11/12
Texas Instruments Industry: Semiconductor No. of domestic equity-oriented schemes that have bought the stock of late: 1 Total no. of domestic equity-oriented schemes that currently hold the stock: 3 Schemes that added the stock to their portfolios recently: Axis Innovation Fund
Unitedhealth Group Inc Industry: Health insurance and services No. of domestic equity-oriented schemes newly added the stock: 1 Total no. of domestic equity-oriented schemes holding the stock: 1 Schemes that added the stock to their portfolios recently: Axis ESG Integration Strategy Fund
