V-Mart, Axis Bank, Ipca among MFs’ consistent picks in past 6 quarters

Money managers of domestic mutual funds have been consistent buyers in about 28 stocks in each of the past six quarters amid the sharp swings in the stock market.

Stocks such as Kalpataru Power, Ipca Laboratories, SBI Cards, V-Mart Retail, V-Guard Industries, Hero MotoCorp, Indian Bank and Axis Bank, among others, have seen an increase in mutual funds holdings in each of the past six quarters.

Many stocks in which mutual funds have increased stake have underperformed so far this year. Analysts said the purchases must be seen as part of their investment strategy to buy laggards for the long term.

A consistent increase in mutual fund holdings indicates the confidence of better-informed fund managers in the companies’ businesses.

“Retail investors can look at stocks that form a part of the institutional investors’ portfolios as these stocks would have passed through several filters,” said G Chokkalingam, founder and CEO of Equinomics Research & Advisory.

“Fund managers are looking at those companies where there is earnings growth opportunity while the quality of business, quality of management and valuations at which the company is available are some common factors used to select investment ideas by them.”

Domestic mutual funds have bought shares worth Rs 1.69 lakh crore so far in 2022.