Here are 46 favourite stocks of mutual funds; do you own any?
Majority of the stock in which money managers raised their stake during the past four quarters are from midcap and smallcap space
Domestic institutional investors who have remained net sellers in the domestic equity market to the tune of over Rs 1.14 lakh crore since April 2020, increased their bets in at least 46 companies consistently in the last four quarters.
The majority of the stock in which money managers raised their stake during the past four quarters are from midcap and smallcap space. With a gain of 583% since March 31, 2020, KPIT Technologies emerged as top gainer in the list. Mutual funds have increased their stake in the company to 13.69% as of March 31. They had 13.05%, 12.31% 10.30% and 10.03% holding during the past four preceding quarters, data available with Ace Equity showed.
They also consistently raised holdings in Birlasoft, Firstsource Solutions, Tata Elxsi, Sarda Energy, Graphite India, Jindal Steel and Power, Lux Industries, Century Plyboards, Nocil, EID Parry and Mphasis. Shares of these companies have rallied between 200%-523% since March 2020.
Broader markets have outpaced the benchmark equity indices BSE Sensex and NSE Nifty during the past 15 months. Where the BSE Midcap and Smallcap indices have gained up to 163%, the 30-share Sensex and 50-share Nifty indices have advanced up to 88%. Market watchers believe that robust liquidity along with under ownership and attractive valuation attracted mutual fund managers in select midcap and smallcap stocks.
There are 15 other stocks in which mutual funds have raised their bets consistently during the past four quarters have doubled investors wealth since April 2020. These stocks in the list included Radico Khaitan, Minda Industries, Gujarat Gas, Blue Dart Express, TCI Express, Galaxy Surfactants, Endurance Technologies, Piramal Enterprises, Greenply Industries, Vinati Organics, Subros, BASF, HCL Technologies and V-Mart Retail.
While sharing his advice on midcap and smallcap space, Arun Malhotra, founder and managing partner, CapGrow Capital said, “Investing in small and midcaps is complex as there exists asymmetric information, issues of liquidity and high impact costs. Midcap and smallcap investing is cyclical, which exhibit boom and bust cycles, and it requires more of a bottoms-up approach. Best returns can be harvested when you catch the cycle right: post a bust and economic distress. One critical factor while evaluating stocks in this space is the capability and integrity of the management.”
Other players in which mutual funds have increased their stake in the past four quarters
