10 US stocks that have found favour with domestic equity-oriented mutual funds

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.

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.

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

Also see: Nasdaq, Nasdaq Next, FANG, S&P 500, Total Market and Value: How to get the best out of US focused MFs?

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

Also see: Up to 38% returns this year, US-focused Indian mutual funds offer better geographical diversification

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

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

Also see: Chasing Chinese dragons: What's in store for Indian mutual fund investors?

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

Also see: Mutual funds call for easing RBI's limit on overseas investments amid growing opportunities

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

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

Also see: Top microcap multibagger stocks added by mutual funds, amidst volatility

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

Also see: Top Mid-cap stocks that MF sold ahead of volatility