Funds holding shares of Tata Motors

Investment in mutual funds is considered to be safer than investing in the equity market. This becomes very apt in the current market environment when many of the stocks have fallen by more than 50 per cent in just last one month. This had damaged portfolios of many investors. It has been seen that such cases are mostly seen in small and mid-cap stocks. Earlier, we saw how the issue of corporate governance in case of a couple of companies rocked some of the mutual fund schemes and impacted their returns.

Nevertheless, there are cases of sudden fall in the price of large-cap stocks that spoils the return of many mutual fund schemes that hold them. One of the recent incidences is fall in the stock price of Tata Motors. In the last one month, the stock price of Tata Motors has fallen by almost 30%, however, most of it was on October 9, 2018 when it fell by 14 per cent from its previous close.

To understand which are the funds that will get impacted most because of the fall in the share prices of Tata Motors, we studied the holdings of all the equity funds including ETFs and index funds that are holding the stock.

There are 219 funds including ETFs and index funds at the end of September 2018 that were holding stocks of Tata Motors. If we exclude index funds and ETFs there are 182 funds that are holding Tata Motors. Even in these equity funds, many are close-ended funds that are holding the stocks.

Following are the five funds that hold a high weightage of Tata Motors in their schemes and are likely to get impacted the most.