MF Top Buys/Sell: May 2020

AUM of MF industry grew 2.5% MoM to Rs.24.5 lakh crores, firtst uptick after a drop for two consecutive months. Out of this, Equity oriented AUM stands at Rs.6.77 lakh crores, almost 26.1% of total Industry AUM. SIP book continues to decline but still maintained healthy levels above Rs.8,000- 8,123 Crores in May 2020, a sequential decline of Rs.253 crores from previous month.

Source: AMFI

AUM under equity oriented schemes during May 2020 decreased marginally on a subsequent basis and now stands at 26.1% of total industry AUM. During the same period debt oriented schemes saw decline to 29.1% of total industry AUM.

Source: AMFI, ICRA Analytics

Buy/Sell by AMCs:

The objective of writing this report is to apprise you about the industry trends and track what smart institutional investors are buying and selling in their actively managed portfolios. 

Key highlights:

a) Fund Managers bought names like HUL, Bharti Airtel, ICICI bank, Power Grid and Kotak Mahindra bank while they sold names like RIL, HDFC Bank, TCS and L&T.

b) HUL was lapped by the smart investors when GSK sold ~5.7% stake in the company for Rs.25,480 cr and stock had fallen by 6.3% during the month of May 2020.

c) Bharti Airtel also got thumps-up post its better than expected quarterly earnings and rub-off effect on its valuation post several marquee names coming on-board with Jio platform.

d) ICICI bank draw the attention of these investors after correcting ~40% from its peak.

e) Axis MF, SBI MF and Kotak MF pared its position in Financials and they have 3-5 names in their top-5 sell during the month of May 2020.

f) SBI MF and Kotak MF bought cement names like Ambuja and Ultratech while they bought Auto/Auto-ancillary like Hero MotorCorp and Balkrishna Industries.

g) MFs also bought stocks from Pharma and Chemical industries like Aurobindo Pharma, Cadila, Sumitomo chemicals and Bayer cropscience.

h) In mid-cap names, these institutional investors bought Shriram Transport, Adani Enterprises and Jindal Steel & Power while sold names like Dalmia Bharat, LIC Housing and Jubilant Foods.

i) In small cap names, MFs bought names like Indian Energy Exchange, Laurus Lab and Avanti feeds while they sold names like Majesco, Chennai Petroleum and Healthcare global enterprises.