Mutual funds increased allocation to private banks, consumer, utilities, technology, NBFCs, retail, metals and PSU bank stocks in June, an ICICIdirect report said. In the same period, the fund managers reduced the allocation to oil & gas, chemicals, autos and cement stocks.
Among large-cap stocks, GAIL, Cadila, Godrej Consumer, Hindustan Zinc and JSW Steel witnessed highest buying during June, as per the report. UPL, Piramal Enterprises, Yes Bank, Indiabulls Housing Finance and Bandhan Bank were the most sold large-cap stocks in the month.
Among mid-cap stocks, Shriram Transport, Hindustan Aeronautics, Emami, Godrej Properties and Glenmark Pharma were the top choice of fund managers in June, while Graphite, GMR Infra, Quess Corp, Apollo Tyres and Godrej Agrovet saw selling.
Table: Top buy and sell choices by mutual fund managers in June.
Flows into mutual funds continued at a brisk pace in June. The asset under management (AUM) rose to Rs 25.49 lakh crore, registering a 4 percent quarterly gain.
Systematic investment plans continue to be the backbone of mutual funds as inflows via this mode remained above Rs 8,000 crore for a seventh consecutive month despite a mixed performance seen in the Indian indices.
"Even as the markets continued to seesaw, investors continued to park money in mutual funds, with inflows remaining steady and the contribution of SIPs remaining stable at Rs 8,120 crore in June," Motilal Oswal said in a note.
Fund managers said apart from more retail participation, increased flow money market funds led to the rise in AUM.
Flows into the equity mutual funds, however, moderated in June compared to May. The AUM under the equity category, including Equity Linked Savings Schemes, was Rs. 7.58 lakh crore, down 0.14 percent MoM. The AUM for the income/debt oriented category also fell 12.92 percent MoM to Rs 11.55 lakh crore.
"After the Nifty surpassed the 12,000 to hit a record high at the beginning of the month, the election outcome-driven euphoria fizzled out with investors waking up to the ground realities—slowdown in the economy, concerns around liquidity woes for NBFCs, and a moderation in consumption on the domestic front, among others," Motilal Oswal added.
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