Skip to main content

Which Stocks Mutual Fund Managers Investing In?

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 



Post-elections, fund managers have increased exposure to specific sectors and firms. Their picks can help individual investors make informed portfolio choices.

Fund managers have made adjustments to their portfolio to reflect the post-election scenario -a stable government that is perceived to be pro-growth. The experts' picks can help individual investors build their portfolio as well. So, what are they betting on?


Tweaking portfolios Most fund managers insist that a chunk of the portfolio adjustments were made prior to the elections, anticipating a positive outcome.

However, the nature of the outcome has led to additional tweaking in the portfolios. We had started shifting positions to economy sensitive sectors several months ago. However, with this sort of an outcome and, expectations of action from the government, we have increased weightages to some of these sectors. We continue to take a balanced approach, as before, focussing on quality parameters like cash flow and return on equity while picking stocks. However, he admits, his team has undertaken some realignment to take advantage of opportunities that have emerged in sectors that are bound to benefit from an improving domestic scenario. Oil and gas, infrastructure, capital goods, logistics, cement and public sector banks are among the sectors he has added to since the election outcome.
 
Most changes in the fund's equity portfolios were carried out well before the election results. We have been convinced for some time that domestic growth is going to pick up, so we have picked stocks which tend to do well during an economic re vival. Oil and gas, auto mobiles, cement, banking and capital goods are among his top sectoral picks. The big bets Not surprisingly, fund managers are leaning towards sectors that stand to benefit the most from a reforms push and an economic growth. They seem to have taken a particular liking to companies belonging to metals and industrial gases sectors, followed by private banking. Hindustan Zinc, one of the profitable subsidiaries of Anil Agarwal-promoted Vedanta group, has seen a massive ramp-up in mutual fund holdings, mainly on account of impending disinvestment plans for the company. Finance ministry has initiated the process for a fresh valuation of the company, seeking to push through a long-pending sale of the government's residual stake in it. By flagging off this process, the government has signalled its intention to hasten disinvestment in public sector companies. Petronet LNG, the importer of liquefied natural gas, is another stock that was picked up by fund managers last month. It has underperformed the Sensex since 2012 and hit a new low in January. However, going forward, several analysts expect a gradual recovery in its operations.

Interestingly, while funds' holdings in the power generation and distribution segment has seen a slight drop during this period, the holding in Power Grid Corporation of India, the country's largest power transmission utility, has seen the highest jump among individual companies. The company's stock has seen a massive rebound this year after trading low for several years. From a low of `86 last year, it has jumped 65% to `142, possibly because the market now anticipates faster clearances for stranded power projects that will boost power generation and, hence, the company's transmission volumes. Power sector reform is among the government's top priorities. Power Grid enjoys a near-monopoly on India's transmission network and, therefore, is well placed to benefit from any expansion in power generation. Another expected beneficiary of a possible revival in the power sector is SJVN. Fund managers heavily accumulated its shares in the month of May.

In the construction space, Sadbhav Engineering was among equity funds' top picks of the last month. Despite sour business climate, over the past two years, Sadbhav has witnessed strong order inflows, providing healthy earnings visibility to the company. Its strong execution record and large order backlog are attracting the attention of fund managers.

In the banking sector, City Union Bank and IndusInd Bank feature prominently in the list of stocks on fund managers' radar. The sector is likely to benefit the most from an economic turnaround. Among other companies with substantial hike in mutual fund holdings post elections are Motherson Sumi Systems, Bharti Airtel, Yes Bank and Kalpataru Power Transmission.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund
      2. Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now