Mumbai: Stocks such as Adani Power, Cholamandalam Investment, Bank of Baroda, HAL, and Bandhan Bank are likely to be upgraded from mid-cap to large-cap in the upcoming Association of Mutual Fund in India's semi-annual upcoming reclassification, according to ICICI Securities.
IDBI Bank, HDFC AMC, Godrej Properties, SAIL, Zydus Life, Jubilant Food, and PB Fintech are likely to downgraded from the large-cap to mid-cap category, the brokerage said.
AMFI announces reclassification of shares twice a year. The next round is scheduled during the first week of July.
Mutual fund managers must consult the AMFI classification to balance their portfolio according to the category requirement.
Re-categorisation need not lead to fresh inflows or outflows. It is not necessary that the active equity fund manager change stock weightages in their respective portfolios to match the AMFI classification.
But, equity-oriented schemes, whose portfolios are focussed on market capitalisation, must to realign their holdings within one month of the announcement based on discretion.
AMFI classifies stocks by taking into account data from January to June 2022. According to ICICI Securities, Tata Tele, KPR Mills, Tanla Platform, Poonawala Fin, Phoenix Mills, SKF India, and Chambal Fertilisers are likely to be shifted from small-cap to mid-cap category.
IDBI Bank, HDFC AMC, Godrej Properties, SAIL, Zydus Life, Jubilant Food, and PB Fintech are likely to downgraded from the large-cap to mid-cap category, the brokerage said.
AMFI announces reclassification of shares twice a year. The next round is scheduled during the first week of July.
Mutual fund managers must consult the AMFI classification to balance their portfolio according to the category requirement.
Re-categorisation need not lead to fresh inflows or outflows. It is not necessary that the active equity fund manager change stock weightages in their respective portfolios to match the AMFI classification.
But, equity-oriented schemes, whose portfolios are focussed on market capitalisation, must to realign their holdings within one month of the announcement based on discretion.
AMFI classifies stocks by taking into account data from January to June 2022. According to ICICI Securities, Tata Tele, KPR Mills, Tanla Platform, Poonawala Fin, Phoenix Mills, SKF India, and Chambal Fertilisers are likely to be shifted from small-cap to mid-cap category.
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