Mutual Fund Stock Strategy: The Nifty grew by 15 per cent on an annual basis in the calendar year 2020. At the same time, the year 2020 ended with a 7.8 percent rise in the Nifty in December. Even after COVID 19, the market performance has been very strong on an annual basis. During this time, mutual funds have also made frequent changes in their investment strategy. Talking about the whole year, the maximum investment was in the defensive sector. In the last month of the year, financial and technology stocks became the choice of mutual funds. Among the 10 companies in which the maximum value of mutual funds has increased in the month of December, the top 6 in the top 10 are the stocks belonging to these sectors. Brokerage house Motilal Oswal has given a report in this regard.
Most focus on these stocks in December
In the month of December, the stocks on which mutual funds have been the most focused, they have 6 financial or tech shares in the top 10.
2. ICICI Bank
5. HCL Tech
6. Sun Pharma
10. Avenue Supermart
The distance created from these shares
In the month of December, the stocks which have lost the most value are among the top 10.
1. HDFC Bank
2. Bandhan Bank
3. Ramco Cement
5. Kotak Mahindra Bank
7. Balakrishna Industries
8. PI Industries
9. Ambuja Cement
10. JK Cement
This sector takes priority in December
Among the sectors that Mutual Fund exuded the most in December are Technology, Capital Goods, Retail Sector, PSU Bank, Consumer Sector, Telecom and Textile Sector. It has the highest weightage increase on the monthly base. At the same time, the sectors which have the highest weightage on monthly basis are the private banks, cement, oil and gas, automobile, utilities and chemical sectors. Even after this, the private bank sector continues to have the highest weightage of 18.2 percent. Other sectors with the highest weightage include technology (11.7%), NBFCs (8.9%) and healthcare (8.1%). Real estate, textile, tech, retail and infra sectors grew the most in December.
2020: fierce allocation in defensive shares
Talking about the year 2020, the highest allocation of mutual funds has been on defensive stocks. Weighted 650bp increased to 33.9 percent in this segment. Defensive shares continued to be a strong pick in the early months of 2020, with a sharp rise in the non-consecutive months, then a sharp decline in March and a further rise in November and December. In the year 2020, the weightage on the technology sector has increased by 370bp to 11.7 per cent. It is second in terms of mutual fund allocation. Healthcare is at number four in terms of allocation, while telecom has come at number 12 in this case.
Net seller in 82% shares of Nifty 50
In December, the focus of mutual funds has been less on frontline stocks. According to the report, 82 per cent of the shares of Nifty 50 are being sold by mutual funds in the last month. Whereas 44 percent in September, 38 percent in August and about 40 percent in July were buyers.
AUM increased to 31 lakh crores
Asset under the management of the mutual fund industry has increased by 3.4 per cent to Rs 31 lakh crore in December. There was an increase in AUM for the 7th consecutive month. In the year 2020, AUM has increased by more than 9.5 lakh crores i.e. 17 percent.