MF Update: Movers and shakers of November Portfolio

The asset under management (AUM) of the domestic mutual fund industry has increased by four per cent sequentially for the month of November. Digging deep, this is the trend that we are witnessing.

Sector Movers: Contrary to the normal believe, non-banking financial companies (NBFCs) saw their weightage increase in the mutual fund portfolio. It increased by 20 basis points MoM basis. However, the sector that saw the highest increase in their weightage is private banks. The weight of private banks increased sharply by 130 basis points to 17.4 per cent. It is at a kissing distance of its near all-time high of 17.7 per cent. Other sectors that have witnessed their weights increasing are Capital Goods, Consumer, Retail, Oil and Cement.
 
Company Movers: ICICI Bank remained one of the preferred stocks among mutual funds with net buying by 17 funds. Other top movers were also from private bank space such as HDFC Bank, Axis Bank and HDFC. Among the top five, other companies were Reliance Industries and L&T.
 
Sector Shakers: Defensives such as healthcare, technology and utilities are becoming less favourable among MF schemes and is reflected in the lowering of their weightage in the overall MF portfolio. It is being led by the healthcare sector that saw a drop of 50 basis points on a monthly basis and followed by Technology, Utilities and Telecom. 

Company Shakers: Among top companies that have witnessed a maximum decline in values are Sun Pharma, NTPC, GAIL, Arvind and Tata Steel. If we extend this list to 10, we find that two more are from the healthcare sector and they are Divis Lab and Cipla.