Before I start off on any analysis in this segment, even at the cost of a repetitive bore I will put forth this disclaimer. All fund schemes are taken as direct. However, even if you are a direct investor, hire a financial advisor that you trust who can guide with investments. Pay for your advice.
Fund category definition: Funds with minimum 25% each in Large, Mid and Small cap stocks
Benchmark: Nifty 500 50:25:25 TRI with change of -2.48% in September 2022 and a one-year return of 0.39%
Data as on: 30th September, 2022
This is one of those rare months where a fund has overtaken Axis in any category. HDFC has gone one notch up to the fourth place, moving Axis to fifth. For some time now, Axis has not had a great run in terms of their Large Cap picks, which is beginning to show in Bluechip, Flexi cap and Multi cap.
Aditya Birla has reduced it’s expense ratio by 11 basis points to go down to 0.65%.
ICICI (5 more stocks), Quant (8 more stocks) and to an extent Invesco (4 additional stocks) seem to have gone on a shopping expedition together.
In this category too, the month’s report card is completely inverted from all-red to all-green.
Market Cap Allocation
SBI has increased it’s Large Cap allocation by 2.92%, also resulting in the total equity exposure going up by 2.38%.
ICICI follows suit with an increase in Large Cap allocation by 3.63% and an overall equity exposure hike up by 3.03%.
Aditya Birla on the other hand, has trimmed Large Cap by 2.25% while increasing it’s Small Cap exposure by 2.38%.
Invesco has reduced Large Cap allocation by 2.10%, redistributing the spoils between the other two market caps.
Top 5 Sectors
Although SBI has exited Bandhan Bank (1.49%), it has also added a hefty 3.17% position in Axis Bank to make the sector an even stronger top allocation with 14.02% in the portfolio.
ICICI has completely exited it’s 1.08% position in Bank of Baroda, bringing down the sectoral allocation to Banks to 17.20%. Two new positions in Hero Motocorp (1.83%) and Maruti Suzuki (0.50%) have boosted the Auto sector to fifth position with 5.80%. Simultaneously two exits from Auto Ancilliaries, namely Motherson Sumi Wiring India (0.74%) and Sandhar Technologies (0.06%) mean the sector is out of Top 5.
In Axis, Healthcare services has organically swapped out Construction for the fifth spot within sectors.
Quant has further fortified it’s Consumer Non-Durables or FMCG arsenal this month by 3.50% with a 1.52% increase in ITC (now at 9.70%) and two new additions, HUL (1.16%) and United Spirits (0.28%). Having cut down massively in banking last month, it is back on the wagon to add again by 2.17%. This has been done mainly through three new additions – PNB (1.37%), Canara Bank (0.61%) after a break only in August and RBL Bank (0.44%). What was once the largest stock is now completely out. The fund has exited Vedanta with a chunky 4.10% allocation, leading to Banks replacing Metals & Mining in the top 5 sectors. Transportation is another sector with a major slashing of 3.74% to come down to 8.63%. That has happened thanks to two main changes – a trim of 2.81% in the Adani Enterprises allocation (now at 1.21%) and an exit from Container Corporation (1.28%). So yes, the Quant playground remains as happening as ever.
Top 10 Stocks & Movements
Nippon has beefed up it’s allocation to Sun Pharma by 0.79% (now at 1.40%). The fund has exited out of six stocks – Hindalco (0.33%), MphasiS (0.25%), Max Healthcare (0.23%), Motherson Sumi Wiring (0.18%), Orient Cement (0.02%) and JK Lakshmi Cement (0.02%). Four new stocks also make their way to the portfolio – Vijaya Diagnostic Centre (0.98%), Chambal Fertilizers and Chemicals (0.24%), Finolex Industries (0.10%) and Ajanta Pharma (0.09%).
Apart from the numerous changes mentioned above, SBI has made a complete exit from Tata Steel (2.18%). The fund also now has one, sole, big allocation of 4.44% to an NBFC, namely Bajaj Finance taking the sector from 0 to 4.44%.
ICICI has trimmed it’s exposure to SBI by 0.89% (now at 1.44%) while beefing up EPL by 0.88% (zooming it up to 1.06%). Yet again, there are many entries and exits even apart from the ones mentioned above. Yet again, I will apply my discretion to mention only ones more than 0.50%. Apart from the exits mentioned above, there is one more substantial exit to the tally – Jindal Steel & Power (1.01%). As for the shopping list of new stocks, technically beyond the ones mentioned above, there are ten more. But, my substantial allocation rule means I mention only the addition of TCS (1.02%).
HDFC has made three new additions – MphasiS (0.75%), Tech Mahindra (0.55%) and Glenmark Pharma (0.42%).
Axis has added what HDFC did last month – a new position of 0.63% in Ramco Cements.
Kotak has trimmed it’s allocation in Mahindra & Mahindra by 0.83% (now at 1.52%). The fund has exited from Amber Enterprises (0.35%) while adding a new position in Hero Motocorp (0.80%).
Aditya Birla has trimmed by 0.96% it’s allocation in L&T (now at 2.02%). There’s a slew of exits from the portfolio – HCL Tech (1.19%), Biocon (0.52%), Metropolis (0.12%) and Whirlpool (0.08%). To balance it out, there are three new additions – Triveni Turbine (1.38%), Interglobe Aviation (0.61%) and Butterfly Gandhimati Appliances (0.33%).
The mantra followed by Quant Active seems to be on the lines of living it large. So, you see large slashes or increases and more so, large entries and exits. As usual, I will not repeat the changes mentioned in the sectoral section. The fund has beefed up it’s position in Ambuja Cement by 1.34% (now at 8.60%) and by 1.06% in Reliance (now at 1.39%) which it had exited in July. The allocation in Piramal Enterprises has been trimmed by 1.19% (now at 0.88%). Two other exits from the portfolio are Ashok Leyland (1.51%) and Maruti Suzuki (0.29%). Seven more stocks have made their way to the portfolio – Sun Pharma (1.66%), HDFC Life (0.88%), Piramal Pharma (0.87%), Best Agrolife (0.80%), Bosch (0.53%), L&T Tech Services (0.51%) and VRL Logistics (0.10%).
Invesco has reduced it’s allocation to Axis Bank by 1.24% (now at 2.10%). The fund has also added four new fairly substantial positions – IndusInd Bank (1.31%), Triveni Turbine (1.16%), Devyani International (1.03%) and Persistent Systems (0.42%).
Sundaram has beefed up it’s position in HUL by 1.81% (now at 3.31%). The fund has exited four stocks – Hindalco (0.65%), V.I.P. (0.58%), Amrutanjan Healthcare (0.12%) and Dixon Technologies (0.09%). It also added three new stocks to the portfolio – PI Industries (0.83%), Hatsun Agro (0.58%) and BEML Land Assets (0.29%).
Check out the other categories and what the funds there were up to:
Large Cap Funds – September 2022
Flexi Cap Funds – September 2022
Large & Mid Cap Funds – September 2022
Mid Cap Funds – September 2022