Mutual Funds Made Strategic Exits from Key Stocks in September
Mutual funds rebalanced their portfolios significantly in September by cutting or completely exiting from quite a few large-cap and mid-cap stocks. While on record lately, fund managers have been saying they feel large-cap stocks would outperform due to valuation comfort, Nuvama Alternative and Quantitative Research report points out there has been a mixed approach where several large-cap and Nifty 50 names have seen the stake reduction while others faced a complete exit.
HDFC Mutual Fund
HDFC Mutual Fund reduced its exposure to stocks like Max Healthcare, Embassy Office Parks REIT, and Zee Entertainment. Additionally, it made a full exit from holdings in IDFC and Sadbhav Engineering, signalling a shift in its investment strategy.
Kotak Mutual Fund
Similarly, Kotak Mutual Fund cut its stakes in Samvardhana Motherson, Bharat Forge, and Reliance Industries, one of the largest Nifty 50 constituents. Moreover, Kotak exited completely from Zee Entertainment, Asian Paints, and Ami Organics, underscoring a significant shift in the fund’s focus.
Axis Mutual Fund
Axis Mutual Fund followed a different script with total de-allocation from PSU stocks like ONGC, NHPC, and Petronet LNG. It also saw cutting its Nifty heavyweight exposures in the form of TCS, Reliance Industries, and Tata Motors.
Nippon India Mutual Fund
Nippon India Mutual Fund completely exited from Poonawalla Fincorp, in the broader market list, but in the large-cap as well as the prominent constituents of Nifty, the house managed to slice its tally of L&T, Bajaj Finance, and Aditya Birla Fashion.
Quant Mutual Fund
Quant Mutual Fund, which recently emerged into investor’s focus, has been totally exited from the key Nifty 50 stocks of TCS and Dr. Reddy’s along with broad market names like Granules India.
ICICI Prudential Mutual Fund
ICICI Prudential Mutual Fund has made a full exit from stocks like Suzlon, which had incidentally turned out to be a good performer, along with Gulf Oil Lubricants and GNA Axles. It also trimmed shares of Reliance Industries, Lupin, and Gujarat Gas, an exercise in readjusting its stakes in these industries.
Conclusion
Mutual fund houses are repositioning their investment strategies to deal with the need to respond to uncertain market situations and achieve the best returns for their investors.
