Top 5 Stocks Mutual Funds Bought and Sold in November 2021

Even though markets were volatile in November 2021, it did not stop equity mutual funds from attracting investors.

Net inflows into equity mutual funds surged to a 4-month high in November 2021 even as there's uncertainty surrounding the new Covid variant Omicron.

Inflows into equity mutual funds rose to Rs 116.2 bn in November 2021.

This marks the 9th consecutive month of net inflows. Equity mutual funds have been witnessing inflows since March this year on the back of a strong rally in the market.

The inflows for November can be attributed to the correction we saw in the previous few weeks. According to experts, the correction has provided yet another opportunity to invest.

The industry's assets under management (AUM) grew to Rs 38,450 bn in November, their highest levels ever with debt funds garnering Rs 149 bn.

Even the redemption numbers were low at Rs 174.8 bn compared to Rs 234.6 bn in October 2021 which just shows that investors found the correction a good entry point.

Investors continued to stick to their process by following their SIPs. Monthly inflows through the systematic investment plans (SIP) route reached a new high to over Rs 110 bn.

Since the start of this fiscal, monthly SIP flows have shown a secular rise. From Rs 85.7 bn in April 2021, the figures have now rose to Rs 110 bn.

The cumulative inflows from SIPs have now crossed Rs 1,000 bn in a year for the first time. The previous record SIP flow in a calendar year was Rs 986.1 bn in 2019.

Indian equities' record run is finding strong support from retail mutual fund investors. SIPs are the preferred mode of investment. As markets have become volatile, investors have been encouraged to turn towards SIPs.

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

Top Stocks Sold by Mutual Funds in November 2021

Largecaps: Indian mutual funds trimmed their positions in largecap stocks such Vedanta, Zomato, Bosch, and GAIL (India).

Heavy selling was also seen in Apollo Hospital Enterprises.

Midcaps: From the midcap space, mutual funds offloaded IRCTC, Tata Power, BHEL, and Macrotech Developers. All these stocks have seen a run-up in their share price in recent months.

Smallcaps: BSE, Railtel Corporation of India, Phillips Carbon Black and PNB Housing Finance saw maximum selling by MFs from the smallcap space in November 2021.

Top Stocks Bought by Mutual Funds in November 2021

Largecaps: Coming to buying, Yes Bank, Berger Paints, Bandhan Bank, and Eicher Motors from the largecap space witnessed massive inflows.

Midcaps: From the midcap space, fund managers loaded up shares of Vodafone Idea, JSW Energy, Laurus Labs, Alembic Pharma, Zensar Tech, and Devyani International.

Smallcaps: Indiabulls Housing Finance, Granules India, Thangamayil Jewellery, and Welspun Corp were the top smallcap buys.

Top Equity Mutual Funds in November 2021

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

Top 10 Equity Mutual Funds as per AUM

Top Fund Houses	Equity AUM (Rs bn)
SBI Mutual Fund	3,575.8
ICICI Prudential Mutual Fund	1,995.2
HDFC Mutual Fund	1,741.1
Nippon India Mutual Fund	1,399.5
UTI Mutual Fund	1,389.1
Axis Mutual Fund	1,362.2
Kotak Mutual Fund	1,185.3
Aditya Birla SL Mutual Fund	1,090.3
Mirae Asset Mutual Fund	856.5
DSP Mutual Fund	643.1

Data Source: ACE MF, PersonalFN Research

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

• SBI Mutual Fund

  India's largest equity fund held Rs 3,576 bn in equities as of November 2021.

  The top four equity holdings of the fund include HDFC Bank, Reliance Industries, ICICI Bank, and Infosys.

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

  New Buys	Value as on 30 November 2021 (Rs m)
  FSN E-Commerce Ventures Ltd.	7,669.90
  National Highways Infra Trust	6,044.00
  Go Fashion (India) Ltd.	997.40
  PB Fintech Ltd.	931.90
  Metropolis Healthcare Ltd.	62.60
  Laurus Labs Ltd.	23.80
  Birlasoft Ltd.	22.80
  Deepak Nitrite Ltd.	3.20
  Top Increase / Decrease in Stakes	Change in No. of Shares
  Aditya Birla Fashion and Retail Ltd.	265,200
  Indian Railway Catering And Tourism Corporation Ltd.	115,375
  Mazagon Dock Shipbuilders Ltd.	810,000
  Alembic Pharmaceuticals Ltd.	-384,703
  Indiamart Intermesh Ltd.	-15,450
  Syngene International Ltd.	-22,100

  Data Source: ACE MF, PersonalFN Research
  

  Interestingly, SBI Mutual Fund did not exit any of its holding completely.

• ICICI Prudential Mutual Fund

  ICICI Prudential Mutual Fund stands as the second largest equity fund with Rs 1,995 bn in equities as of November 2021. The same figure in the month of October was Rs 2,020 bn.

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

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

  New Buys	Value as on 30 November 2021 (Rs m)
  FSN E-Commerce Ventures Ltd.	1,627.00
  PB Fintech Ltd.	930.30
  Latent View Analytics Ltd.	599.80
  Go Fashion (India) Ltd.	545.10
  CarTrade Tech Ltd.	369.30
  Tarsons Products Ltd.	310.80
  CG Power and Industrial Solutions Ltd.	3.50
  Elgi Equipments Ltd.	2.20
  Tata Teleservices (Maharashtra) Ltd.	2.10
  Asahi India Glass Ltd.	2.00
  Jubilant Pharmova Ltd.	1.70
  Jubilant Ingrevia Ltd.	1.60
  Poonawalla Fincorp Ltd.	1.40
  Praj Industries Ltd.	1.40
  Suprajit Engineering Ltd.	1.20
  Polyplex Corporation Ltd.	1.00
  Prince Pipes and Fittings Ltd.	0.80
  Supreme Petrochem Ltd.	0.80
  Hikal Ltd.	0.70
  Hinduja Global Solutions Ltd.	0.70
  Indigo Paints Ltd.	0.70
  Indo Count Industries Ltd.	0.70
  Laxmi Organic Industries Ltd.	0.70
  Valiant Organics Ltd.	0.60
  Gujarat Ambuja Exports Ltd.	0.50
  Anupam Rasayan India Ltd.	0.40
  Bharat Rasayan Ltd.	0.40
  Hemisphere Properties India Ltd.	0.40
  Alembic Ltd.	0.30
  Kalyan Jewellers India Ltd.	0.30
  Sharda Cropchem Ltd.	0.30
  Tata Steel Long Products Ltd.	0.30
  The Fertilisers And Chemicals Travancore Ltd.	0.30
  National Fertilizers Ltd.	0.20
  Complete Sell	Value as on 31 October 2021 (Rs m)
  Zomato Ltd.	1,307.90
  Voltamp Transformers Ltd.	39.90
  Top Increase / Decrease in Stakes	Change in No. of Shares
  Zensar Technologies Ltd.	3,124,418
  Firstsource Solutions Ltd.	5,565,284
  Avanti Feeds Ltd.	317,972
  Akzo Nobel India Ltd.	-7,609
  Burger King India Ltd.	-119,146
  Abbott India Ltd.	-13,832

  Data Source: ACE MF, PersonalFN Research
  

  ICICI Mutual fund added as many as 34 new stocks to its portfolio. Although the amount invested was kept to a minimal.

• HDFC Mutual Fund

  Following ICICI Prudential Mutual Fund we have HDFC Mutual Fund with Rs 1,741 bn in equities as of November 2021.

  The top five equity holdings of the fund include ICICI Bank, State Bank of India, Infosys, HDFC Bank, and L&T.

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

  New Buys	Value as on 30 November 2021 (Rs m)
  FSN E-Commerce Ventures Ltd.	1,803.10
  One97 Communications Ltd.	1,271.20
  PB Fintech Ltd.	930.30
  Go Fashion (India) Ltd.	545.10
  Indiabulls Housing Finance Ltd.	256.30
  Sundaram Finance Ltd.	226.20
  Sapphire Foods India Ltd.	147.00
  Adani Green Energy Ltd.	94.50
  Adani Transmission Ltd.	88.70
  Laurus Labs Ltd.	83.30
  Latent View Analytics Ltd.	76.90
  Angel One Ltd.	76.10
  Bajaj Holdings & Investment Ltd.	45.30
  HDFC Asset Management Company Ltd.	33.70
  Procter & Gamble Hygiene and Health Care Ltd.	25.40
  Birlasoft Ltd.	5.60
  Complete Sell	Value as on 31 October 2021 (Rs m)
  Indian Energy Exchange Ltd.	106.20
  TVS Motor Company Ltd.	32.50
  The India Cements Ltd.	29.30
  Polycab India Ltd.	6.80
  Top Increase / Decrease in Stakes	Change in No. of Shares
  Colgate-Palmolive (India) Ltd.	110,714
  Steel Authority Of India Ltd.	944,291
  NMDC Ltd.	337,431
  Vedanta Ltd.	-8,411,042
  Biocon Ltd.	-857,679
  Indian Railway Catering And Tourism Corporation Ltd.	-903,500

  Data Source: ACE MF, PersonalFN Research

As Co-head of Research at Equitymaster Rahul Shah rightly says, it's always better to take only 50% exposure and keep the remaining in FDs or cash. This strategy would have rightly come to your rescue in November.

Investors who had money waiting on the sidelines used the market correction as an opportunity and allocated towards equity mutual funds.

In November, mutual funds increased exposure in defensive companies. This is because the uncertainly over the new variant Omicron has added to the volatility.

Mutual funds also lapped up companies which performed well on the earnings front.

Apart from that, fund managers continued the trend and lapped up shares of newly listed companies. According to a report, mutual funds invested Rs 40.5 bn in newly listed companies in the month of November 2021.

Out of all, PB Fintech (PolicyBazaar) saw the highest mutual fund investment at Rs 13.5 bn. FSN Ecommerce Ventures (Nykaa), and One 97 Communications (Paytm) also received good inflows.

Mutual funds going big on IPOs is the trend we are seeing since months now. In some earlier cases, like Zomato, Sona Comstar, and Nuvoco Vistas, they invested 20-40% of the issue size.

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

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

Stay tuned.

Since you're interested in what mutual funds are buying and selling, check out Equitymaster's Powerful Stock Screener.

This tool tracks the stocks recently bought by mutual funds along with the stocks recently sold by them.

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.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...