Top 5 Stocks Mutual Funds Bought and Sold in July 2021

As usual, equity mutual funds continued to attract investors in the month of July 2021 as Indian share markets hit record high.

As interest rates on fixed deposits are lower than the inflation rate, investors often opt for mutual funds.

Inflows into equity mutual funds in July surged to a record high with schemes receiving a net Rs 225.8 bn, a substantial jump from Rs 59.9 bn in June.

4.5x to be precise!

These inflows also drove the overall mutual fund industry AUM to historic high at Rs 35.3 lakh crore.

This also marks the fifth straight consecutive month of inflows.

As Indian stock markets continued to scale new high, new fund offers (NFOs) launched by MF houses contributed to most of the inflows.

Inflows into equity funds continued with July seeing inflows at Rs 89 bn (ex-NFOs) compared to inflow of Rs 58 bn in June.

NFOs during July collected Rs 137 bn.

Meanwhile, systematic investment plan (SIP) flows also rose and came in at a record high at Rs 96.1 bn.

The number of SIP accounts outstanding stood at 41.7 m as compared to 40.2 m in the previous month.

With continuous inflows in the past five months, good earnings, RBI's accommodative stance, and ample liquidity, investors are gaining conviction on Indian equity markets.

Let us take a look at which stocks mutual funds traded in the most during this period.

Top Stocks Sold by Mutual Funds in July 2021

Largecaps: Indian mutual funds trimmed their positions in largecap stocks such as Colgate, Grasim, SAIL, Cadila Healthcare, and Havells in July.

Midcaps: Among midcap stocks, the highest-selling was seen in Alkyl Amines, Canara Bank, IRFC, Indigo Paints, and Dixon Technologies.

Smallcaps: From the smallcap space, mutual funds trimmed positions in Happiest Minds Technologies, Aegis Logistic, Edelweiss Financial, and DCM Shriram in July.

Top Stocks Bought by Mutual Funds in July 2021

Largecaps: Coming to buying, NMDC, Yes Bank, Britannia Industries, Adani Enterprises, and HDFC Life Insurance witnessed massive inflows.

Midcaps: From the midcap space, fund managers loaded up shares of GMR Infra, Indraprastha Gas, Macrotech Developers, and Vodafone Idea.

Smallcaps: Alicon Castalloy, HUDCO, Nazara Technologies, and DFM Foods were the top buys.

Top Equity Mutual Funds in July 2021

Below is the list of top 10 mutual fund houses as per their equity asset under management (AUM) as on July 2021.

Top 10 Equity Mutual Funds as per AUM

Top Fund Houses	Equity AUM (Rs bn)
SBI Mutual Fund	3,015.3
ICICI Prudential Mutual Fund	1,843.9
HDFC Mutual Fund	1,725.1
Nippon India Mutual Fund	1,312.4
UTI Mutual Fund	1,220.0
Axis Mutual Fund	1,199.6
Kotak Mutual Fund	1,090.0
Aditya Birla SL Mutual Fund	1,046.6
Mirae Asset Mutual Fund	761.5
DSP Mutual Fund	620.5

Data Source: ACE MF, PersonalFN Research

What India's Top Mutual Funds Bought and Sold in July 2021

• SBI Mutual Fund

  India's largest equity fund held Rs 3,015 bn in equities as of July 2021.

  The top three equity holdings of the fund include HDFC Bank, Infosys and ICICI Bank.

  Here's what SBI Mutual Fund bought and sold in July 2021.

  New Buys	Value as on 31 July 2021 (Rs m)
  Zomato Ltd.	5,663.10
  GR Infraprojects Ltd.	3,816.40
  India Pesticides Ltd.	813.20
  Clean Science And Technology Ltd.	505.30
  Tatva Chintan Pharma Chem Ltd.	383.70
  Tata Chemicals Ltd.	321.30
  Dalmia Bharat Ltd.	274.30
  eClerx Services Ltd.	203.40
  Nippon Life India Asset Management Ltd.	81.70
  Aarti Industries Ltd.	74.70

  Complete Sell	Value as on 30 June 2021 (Rs m)
  Supreme Industries Ltd.	411.70
  Cera Sanitaryware Ltd.	36.30
  Sundram Fasteners Ltd.	20.70
  Vodafone Idea Ltd.	2.10

  Top Increase / Decrease in Stakes	Change in No. of Shares
  Bata India Ltd.	133,650
  Yes Bank Ltd.	31,378,404
  Escorts Ltd.	113,300
  Sobha Ltd.	-311,735
  Voltas Ltd.	-247,961
  Sun TV Network Ltd.	-304,488

  Data Source: ACE MF, PersonalFN Research

• ICICI Prudential Mutual Fund

  ICICI Prudential Mutual Fund stands as the second largest equity fund with Rs 1,844 bn in equities as of July 2021.

  The top three equity holdings of ICICI Prudential Mutual Fund include ICICI Bank, Bharti Airtel, and Infosys.

  Here's what the fund bought and sold in July 2021.

  New Buys	Value as on 31 July 2021 (Rs m)
  GR Infraprojects Ltd.	3,383.70
  Zomato Ltd.	1,836.60
  Clean Science And Technology Ltd.	352.90
  Rolex Rings Ltd	220.00
  Tatva Chintan Pharma Chem Ltd.	209.40

  Complete Sell	Value as on 30 June 2021 (Rs m)
  Krishna Institute of Medical Sciences Ltd	828.20
  Wheels India Ltd.	115.40
  Nucleus Software Exports Ltd.	74.90
  Sadbhav Engineering Ltd.	48.00

  Top Increase / Decrease in Stakes	Change in No. of Shares
  Rain Industries Ltd.	633,224
  Orient Cement Ltd.	395,270
  Burger King India Ltd.	124,009
  Vardhman Textiles Ltd.	-248,135
  Balrampur Chini Mills Ltd.	-838,790
  Chambal Fertilisers and Chemicals Ltd.	-757,502

  Data Source: ACE MF, PersonalFN Research

• HDFC Mutual Fund

  Following ICICI Prudential Mutual Fund we have HDFC Mutual Fund with Rs 1,725 bn in equities as of July 2021.

  The top three equity holdings of the fund include State Bank of India (SBI), ICICI Bank, and Infosys.

  Here's what HDFC Mutual Fund bought and sold in July 2021.

  New Buys	Value as on 31 July 2021 (Rs m)
  Zomato Ltd.	2,444.40
  Housing & Urban Development Corporation Ltd.	1,267.00
  Clean Science And Technology Ltd.	1,140.60
  GR Infraprojects Ltd.	611.70
  Abbott India Ltd.	585.40
  Ajanta Pharma Ltd.	397.50
  Equitas Holdings Ltd.	357.70
  Rolex Rings Ltd	220.00
  Tatva Chintan Pharma Chem Ltd.	209.40
  Gland Pharma Ltd.	78.60
  Marico Ltd.	36.10
  SRF Ltd.	21.60

  Complete Sell	Value as on 30 June 2021 (Rs m)
  Indiabulls Housing Finance Ltd.	295.40
  Just Dial Ltd.	177.90
  Jamna Auto Industries Ltd.	137.40
  Somany Home Innovation Ltd.	113.90
  Arvind Fashions Ltd.	80.80
  Atul Auto Ltd.	73.10
  GFL Ltd.	71.40
  Taj GVK Hotels & Resorts Ltd.	63.80
  Prism Johnson Ltd.	47.70
  Manappuram Finance Ltd.	8.10

  Top Increase / Decrease in Stakes	Change in No. of Shares
  NMDC Ltd.	3,484,000
  Coromandel International Ltd.	43,750
  Bharat Forge Ltd.	473,392
  Colgate-Palmolive (India) Ltd.	-39,900
  The Ramco Cements Ltd.	-46,750
  SpiceJet Ltd.	-3,069,295

  Data Source: ACE MF, PersonalFN Research

As Indian stock markets scaled fresh record highs, retail investors continued to opt for mutual fund investments in July.

A slew of companies have reported strong earnings. There's also expectation of economic recovery.

What's interesting is that fund managers showed appetite for the recently listed initial public offerings (IPOs).

As can be seen from the buy list above, mutual funds enthusiastically bought stocks of recently listed Zomato, Tatva Chintan Pharma, Clean Science, GR Infraprojects, and Rolex Rings.

In fact, if you see the buy list of ICICI Mutual fund, it only purchased the recent offerings and nothing else.

How the mutual fund buying and selling trend pans out in the month of August remains to be seen.

We will keep you updated on all the developments from this space.

Stay tuned.

Happy investing!

PS: The above piece relies on data from PersonalFN. PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.