A ‘Mutual Fund’ is a trust that collects money from a pool of investors sharing a common investment objective and invests the same money in various instruments such as equities, bonds, and/or other securities. After conducting thorough due diligence activities and considering various crucial factors, Mutual Funds infuse capital into companies or withdraw capital from them from time to time.
Also Read More About What is Mutual Fund?
To accomplish the investment goals, fund managers of Mutual Funds make strategic decisions regarding the purchase and sale of stocks across different sectors, aiming to maximize returns based on the fund’s category.
Mutual funds in India were seen actively buying large-cap, mid-cap, and small-cap stocks. These stocks belong to various sectors such as Logistics, IT, Metal, NBFC, Banks, automobiles, Chemicals, and many more, indicating that mutual funds were looking for a well-diversified portfolio.
Mutual funds have a significant investment presence in these mid-cap companies, with total shareholding exceeding 30% in the company.
| Company Name | CMP (Rs) | M. Cap (Rs in Cr) | Holding as Per Q4 FY23 (%) |
| Crompton Greens Consumer | 275.25 | 17607.18 | 44.17 |
| Federal Bank | 125.6 | 26595.99 | 43.66 |
| Zee Entertainment | 195.05 | 18734.94 | 38.03 |
| Max Financial | 687 | 23709.43 | 34.06 |
| IPCA Labs | 730.95 | 18544.59 | 33.74 |
| Voltas | 792.3 | 26216.03 | 33.14 |
| The Ramco Cement | 935.2 | 22098.07 | 32.46 |
| Coforge | 4520.35 | 27617.34 | 32.2 |
| Sona BLW Precision Forgings | 533.65 | 31240.8 | 31.28 |
| Bata India | 1573.95 | 20229.61 | 30.56 |
| Tata Motors-DVR | 299 | 15204.2 | 30.07 |
The following mid-cap companies have attracted substantial attention from mutual funds, as indicated by the latest quarterly update. This includes the percentage change in their holdings and a quarterly comparison for reference.
| Company Name | CMP (Rs) | M. Cap (Rs in Cr) | 1 Yr Return (%) | % Change | Holding as per Q3 FY23 (%) | Holding as per Q4 FY23 (%) |
| Sona BLW Precision forgings | 532.60 | 31,179.34 | -11.00 | 6.91 | 24.37 | 31.28 |
| Coforge | 4,522.00 | 27,627.42 | 26.55 | 5.47 | 26.73 | 32.20 |
| Dixon Technologies | 4,142.45 | 24,672.52 | 12.89 | 4.84 | 18.92 | 23.76 |
| HDFC AMC | 1,940.55 | 41,419.11 | 3.53 | 4.23 | 13.40 | 17.63 |
| Mahindra CIE | 503.20 | 19,089.50 | 155.57 | 3.72 | 7.47 | 11.19 |
| Syngene International | 733.25 | 29,477.75 | 36.08 | 3.68 | 7.03 | 10.71 |
| Biocon | 239.95 | 28,808.39 | -28.88 | 3.26 | 8.63 | 11.89 |
| IDFC | 102.34 | 16,374.24 | 107.68 | 3.10 | 17.38 | 20.48 |
| Uno Minda | 559.25 | 32,045.75 | 27.28 | 2.64 | 14.32 | 16.96 |
| Page Industries | 38,219.00 | 42,614.25 | -7.22 | 2.26 | 19.00 | 21.26 |
| Capri Global | 763.50 | 15,732.58 | 11.91 | 2.09 | 11.53 | 13.62 |
| Devyani International | 179.55 | 21,643.86 | 11.03 | 1.78 | 7.88 | 9.66 |
| HPCL | 270.25 | 38,336.31 | 10.35 | 1.77 | 19.63 | 21.40 |
| Kajaria Ceramics | 1,265.00 | 20,145.28 | 32.71 | 1.74 | 24.49 | 26.23 |
| Container Corporation of India | 663.05 | 40,399.29 | 3.60 | 1.72 | 17.43 | 19.15 |
| Bharat Dynamics | 1,143.80 | 20,963.69 | 39.85 | 1.71 | 12.39 | 14.10 |
| Voltas | 789.95 | 26,138.26 | -21.62 | 1.68 | 31.46 | 33.14 |
| SAIL | 83.56 | 34,514.68 | 13.10 | 1.67 | 10.73 | 12.40 |
| Poonawalla Fincorp | 342.40 | 26,301.06 | 37.81 | 1.66 | 4.46 | 6.12 |
| Gujarat Fluorochemical | 3,115.10 | 34,219.36 | 9.45 | 1.62 | 4.25 | 5.87 |
| Bharat Forge | 822.40 | 38,290.00 | 20.54 | 1.61 | 26.09 | 27.70 |
| Delhivery | 376.05 | 27,423.83 | -32.66 | 1.58 | 11.45 | 13.03 |
| Piramal Enterprises | 794.65 | 18,965.40 | -18.97 | 1.54 | 8.05 | 9.59 |
| FSN E-Commerce | 140.75 | 40,148.88 | -42.42 | 1.51 | 6.35 | 7.86 |
| Mphasis | 1,887.00 | 35,561.22 | -26.10 | 1.46 | 19.54 | 21.00 |
| LIC Housing Finance | 367.40 | 20,209.33 | 8.77 | 1.44 | 22.74 | 24.18 |
| M & M Financial services | 289.80 | 35,807.30 | 53.85 | 1.42 | 23.76 | 25.18 |
| Blue Dart Express | 6,644.30 | 15,766.89 | -8.74 | 1.41 | 8.45 | 9.86 |
| Federal Bank | 125.45 | 26,564.22 | 36.42 | 1.33 | 42.33 | 43.65 |
| Deepak Nitrite | 2,026.20 | 27,635.91 | 8.98 | 1.31 | 13.75 | 15.06 |
| Persistent Systems | 4,958.10 | 37,892.32 | 39.83 | 1.20 | 26.40 | 27.60 |
| Prestige Estates | 549.85 | 22,041.39 | 28.06 | 1.09 | 9.41 | 10.50 |
| Tata Motors-DVR | 298.80 | 15,194.04 | 42.89 | 1.09 | 28.98 | 30.07 |
| Navin Fluorine International | 4,407.00 | 21,848.70 | 22.17 | 1.07 | 23.77 | 24.84 |
| 3M India | 26,405.00 | 29,758.44 | 29.51 | 1.03 | 6.90 | 7.93 |
| Atul | 6,654.90 | 19,641.09 | -17.36 | 1.02 | 24.21 | 25.23 |
| Escorts Kubota | 2,132.00 | 28,129.76 | 35.46 | 1.00 | 8.10 | 9.49 |
Mutual funds buy and sell stocks for various reasons. They do so to align their portfolios with their investment objectives and strategies. Fund managers continuously manage their portfolios to optimize performance and capitalize on market opportunities. Buying stocks allows them to invest in undervalued or growth potential assets while selling stocks helps them manage risk and reduce exposure to specific sectors or companies.
Additionally, mutual funds accommodate fund flows and adhere to regulatory requirements by buying or selling stocks. It’s important to recognize that each mutual fund has its own approach, and the reasons for buying and selling stocks may differ based on their specific investment strategies. However, it is crucial to understand that merely replicating a fund manager’s actions in your own stock portfolio is not obligatory. Conducting independent research on stocks and mutual funds and aligning your investments with your personal objectives is always important.
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