Mutual Fund Investment: Big bet of mutual funds in market turmoil, invested Rs 24,202 crore in RIL and two banking shares

Business Desk – Mutual Fund Investment: Despite huge fluctuations in the stock market in the month of May, mutual fund companies placed bets on selected big and strong stocks. Taking advantage of the fall in the market, fund managers increased investment in many blue chip companies.

Biggest bet on ICICI Bank, HDFC Bank and RIL

In May, mutual funds invested the most in shares of ICICI Bank, HDFC Bank and Reliance Industries (RIL). During the weakness in the market, a total of Rs 24,202 crore was invested in these three companies. About 14% of the total equity assets under management (AUM) of mutual funds is now invested in these three stocks.

Showed confidence in new companies also

Apart from big stocks, mutual funds also increased investment in new companies. During May, the fund house actively participated in the block deals done in Billionbrains Garage, the parent company of Lenskart and Groww, and bought shares worth about Rs 6,154 crore. Apart from this, shares of JSW Energy, HDFC Life and Adani Enterprises were also purchased.

Selling in IT sector shares

While on one hand mutual funds increased investment in many sectors, on the other hand they also booked profits in some major stocks of IT sector. During May, maximum selling took place in Wipro, Infosys and MCX. Mutual funds withdrew about Rs 7,000 crore from these three companies.

Stake reduced in these shares also

Apart from IT companies, mutual funds also reduced their stake in shares of Lupine and GE Vernova. This strategy suggests that fund managers are constantly making changes to their portfolio keeping in mind the market conditions and sector-based prospects.

What is the signal for investors?

Investment patterns for May indicate that mutual funds have focused on large companies with strong fundamentals and select growth stocks, while adopting a profit-booking strategy in some IT and other stocks. Amidst market volatility, this stance of fund managers can be considered as an indication of sector rotation and long-term investment strategy for investors.