A look at what mutual funds bought and sold in March

After witnessing net outflows of over Rs 58,000 crore for eight months between July 2020 to February 2021, equity mutual funds saw a trend reversal in March. Open and close-ended equity-oriented schemes witnessed a net inflow of Rs 7,376.13 crore, according to data released by the Association of Mutual Funds in India (AMFI).

“Lower interest rates and lack of better investment options will certainly bring an appetite for equity asset class back and this perhaps could be the turning point in sales trend for equity mutual funds,” commented Akhil Chaturvedi, Head of Sales & Distribution of Motilal Oswal Asset Management Company.

SIP contributions in March 2021 reached pre-Covid levels as the month of March 2021 saw inflows of Rs 9,182.42 crore.

The asset under management of the mutual fund industry was at Rs 31.43 lakh crore as of March 31, 2021. “The highlight during the pandemic hit 2020-21 has been the rising acceptance for Mutual Funds from Tier II and Tier III locations, with Mutual Fund AUM from beyond the Top 30 cities rising 54% to Rs 5,35,373 Crore as on March 31, 2021, as compared to Rs 3,48,167 crore as on March 31, 2020,” added Venkatesh.

March saw a notable change in the sector and stock allocation of funds. On an MoM basis, allocation to Healthcare services, IT, Cement & Cement Products, Chemicals, Media & Entertainment increased. On the other hand, Financial services, telecom, energy, automobile and construction decreased, said a report by IDBI Capital.

Largecap stocks 

Source: ICICI Direct

Midcap stocks 

Source: ICICI Direct

Smallcap stocks 

Source: ICICI Direct

Besides that here is a look at what top three equity asset management companies bought and sold in March:

SBI Mutual Fund (equity AUM: Rs 2,63,464 crore)

In March, the fund house bought stakes in Max Healthcare Institute, Wabco India, AU Small Finance Bank, CESC, Adani Enterprises, Yes Bank, Laxmi Organics, Nazara Technologies, Barbeque Nation & Jindal Steel & Power.

On the other hand, it exited from companies like Tamil Nadu Newsprint and Papers, V2 Retail, Rail India Technical and Economic Service and Dr Lal Path Labs.

HDFC Asset Management Company (equity AUM: Rs 1,55,479 crore)

For the month of March, the asset management company included shares like Varroc Engineering, Tata Communications, Max Healthcare, Wabco India, CRISIL, Barbeque Nation, MTAR Technologies, Nazara Technologies, Inox Wind Energy and Havells India.

Simultaneously its exited from scrips like Vodafone Idea, Alkyl Amines, Siti Network, Indraprastha Gas, TVS Motor Company and Manappuram Finance.

ICICI Prudential Asset Management Company (equity AUM: Rs 1,20,139 crore)

During the month of March, the fund house added shares like Den Networks, Easy Trip Planners, Craftsman Automation, Laxmi Organic, MTAR Technologies, Barbeque Nation, Nazara Technologies and Max Healthcare into its portfolio while it exited from counters like Indigo Paints and Rossari Biotech.