mutual funds | stock market: Stocks that India’s top 3 mutual funds bought last month. Should you follow smart money?

NEW DELHI: Besides some newly-listed companies, new-age stocks Zomato and Delhivery were also on the shopping list of India’s three largest mutual fund houses in the month of October when investors poured in nearly Rs 9,400 crore in various equity schemes.

Money managers increased the weights of banks, technology, oil & gas, capital goods, and utilities, while moderating weights in consumer, NBFCs, autos, healthcare, retail, chemicals, telecom, consumer durables, and textiles, shows a report by

.

While the weight of private bank stocks increased to a 20-month high of 18.7%, PSU banks’ weight increased to a 32-month high of 3.7%.

During the month, mutual funds bought equities to the tune of Rs 6,317.63 crore. Here’s what India’s 3 largest AMCs bought in October:

SBI MF
India’s largest AMC SBI Mutual Fund, which has equity investments worth over Rs 4.5 lakh crore, added shares of Voltas,

, , , Marico, among others, during the month. Heavyweights ICICI Bank, RIL and HDFC Bank remain the top three holdings of SBI Mutual Fund.

During the month, SBI MF also picked at least four new stocks – Global Health, GRSE, RITES and Astral – while making complete exit in

.

MF
The Rs 2.4 lakh crore asset management company bought shares of , , , Canara Bank, Zomato and Delhivery.

In October, the MF also invested in the newly-listed Tracxn Technologies while it exited Aarti Industries.

HDFC MF
HDFC MF picked shares of Delhivery, BHEL, SRF,

and last month. It also increased stakes in two Tata Group firms – and Tata Power.

New picks by the fund house included the newly-listed DCX Systems, Electronics Mart,

and GNFC. Complete exits included , NMDC, and SAIL.

What should investors do?
While chasing stocks based on where the smart money, or institutional investors, are betting on, investors must remember that the time horizon, risk appetite, investment objective and portfolio allocation of mutual funds might be different and therefore the outcome too may differ.