MFs added this recently-listed stock to their portfolio last month

Recently-listed TCNS Clothing and International Paper were two stocks that mutual fund houses added to their portfolios in July, according to data provided by IDBI Capital.

The data, based on market value, saw fund houses buying TCNS Clothing shares worth Rs 204.71 crore and International Paper shares worth Rs 1.37 crore.

Reliance Mutual Fund was the biggest buyer of TCNS Clothing, having bought shares worth Rs 99.43 crore. Axis Mutual Fund bought shares worth Rs 58.83 crore, and Sundaram MF, Edelweiss MF and Aditya Birla MF were the other buyers.

In the case of International Paper, the entire Rs 1.37 crore worth of shares was bought by Principal Mutual Fund.

Max Ventures and Industries was among those companies that witnessed exits by asset management companies. Reliance Mutual Fund sold Max Ventures shares worth Rs 60 lakh.

The data also throws up sectoral trends in terms performance. On a month-on-month basis, the financials sector emerged to be the top gainer, having risen over 10 percent in terms of market value.

The consumer goods and energy sectors were next in line from the top, while the media and metals sectors made up the bottom two.

sector

On an annual basis, the telecom sector is the biggest gainer, up around 94 percent, followed by the IT and consumer goods sectors, which rose 85 and 65 percent, respectively.

“Domestic mutual funds turned out to be net equity buyers for July 2018. Mutual Funds were net equity buyers in 22 trading session for an amount of Rs 3,995.02 crore against net buying of Rs 9,231 crore in June 2018. In July, mutual funds were net buyers in equities for 15 trading sessions and net sellers in the remaining 7 sessions. Net buying in equities were recorded highest at Rs 1,095 Cr on 17th July 2018; while net selling was recorded at Rs 2,326 crore on July 26, 2018,” analysts at IDBI Capital wrote in their report.

Mutual funds’ asset base rose by 5 percent month on month to Rs 23.96 lakh crore, as at the end of July, driven by participation from retail investors and a spirited investor awareness campaign by the industry.

The total assets under management (AUM) of the mutual fund industry, which has 42 players, was Rs 22.86 lakh crore as at the end of June, according to the data by Association of Mutual Funds in India (AMFI).

“The monthly rise in the asset base is mainly due to the industry body’s investor awareness campaign and strong participation from retail investors,” AMFI Chief Executive NS Venkatesh told PTI.

Besides, Systematic Investment Plan (SIPs) continue to be the fancy of retail investors and people continue to invest through the route as it allows investors to invest in small amounts periodically instead of investing everything at one go, Venkatesh said.

Retail equity AUM touched Rs 10 lakh crore last month. It stood at Rs 9.61 lakh crore as at the end of June.

As many as 9 lakh new folios were added last month, taking the total to an all-time high of 7.55 crore folios as at the end of July, up from 7.46 crore folios at the end of the previous month.