Mutual Funds Add Only 67 New Positions, Stick to 1,082 Stocks in 2024
Mutual Funds of India has maintained their steady stock selection in the year 2024, even experiencing significant inflows from the past two years. Mutual funds only added 6% more stocks and increased the stocks to 1,082 in November from 1,015 in December 2023, and only 67 new stocks were seen. In December 2022, the remaining stocks were slightly higher than 881.
In 2024, mutual funds will use approximately 20% of 4,200 stocks, which are listed on the Bombay Stock Exchange (BSE). The data for January 2018 and December 2021 shows that mutual funds invested over 800 stocks. From June 2016 to December 2017, the corresponding number stayed close to 800 stocks.
At present, India has 44 mutual funds investing in equities, and total assets under management (AUM) are around Rs. 43 lakh crore. Half of these assets are focused on just 27 stocks. HDFC Bank ranks first in the list as the most owned stock by mutual funds, which have valued at Rs. 2.73 lakh crore. On the other hand, ICICI Bank is valued at Rs. 2.22 lakh crore, and Reliance Industries Ltd. is valued at Rs. 1.51 lakh crore. Infosys, Bharti Airtel, and L&T complete the list of the most owned stocks by MFs.
A significant amount of money inflow is into newly-listed companies, as we saw the highest number of IPOs in recent months. There is a chance that mutual fund managers have decided to diversify new money inflows to participate in new businesses like Enviro Infra, NTPC Green Energy, Waaree Energies, Premier Energies, and Bajaj Housing Finance. These few companies have recently been listed as top-performing IPOs.
