Mutual Funds’ Picks in November 2024: Where’s All the Money Going?
Pune, 13 December 204: In November 2024, equity mutual funds reached new heights. A staggering ₹35,943 crores flowed into equity-oriented schemes, with ₹25,320 crores contributed via SIPs for the second consecutive month. This record-breaking momentum showcases strong investor confidence in the Indian market.
But the burning question remains: Where is all this money going? Let us unpack the details.
Sector-Wise Trends: A Strategic Shift
Mutual funds constantly recalibrate their portfolios, doubling down on sectors with growth potential and trimming exposure to those falling out of favour. Here are the key trends:
funds constantly recalibrate their portfolios, doubling down on sectors with growth potential and trimming exposure to those falling out of favour. Here are the key trends:
Top Sectors Bought:
⦁ Infrastructure: ₹11,417 Crores
⦁ Manufacturing: ₹10,950 Crores
⦁ Oil & Gas: ₹7,631 Crores
Top Sectors Sold:
⦁ IT-Software: ₹4,194 Crores
⦁ Artificial Intelligence: ₹1,346 Crores
⦁ Construction: ₹1,321 Crores
The emphasis on infrastructure and manufacturing signals a focus on India’s growth story, while the pullback from IT and AI hints at shifting priorities in tech.
Large-Cap Stocks: Bold Moves
In the large-cap space, mutual funds placed significant investments while also making some surprising exits.
Major Buys:
⦁ Zomato (QIP): ₹5,290 Crores
⦁ Axis Bank: ₹4,771 Crores
⦁ Reliance Industries: ₹4,683 Crores
Major Sells:
⦁ HDFC Bank: ₹11,115 Crores
⦁ Power Grid Corporation: ₹1,693 Crores
⦁ Adani Enterprises: ₹900 Crores
The heavy sell-off in HDFC Bank is particularly intriguing, given its historical status as a mutual fund favourite. Interestingly, the stock is trading at an all-time high even after the selling.
Mid-Cap Stocks: Finding New Opportunities
Mid-cap stocks saw focused action as funds explored niche opportunities.
Major Buys:
⦁ KEI Industries: ₹1,404 Crores
⦁ ZF Commercial Vehicle Control Systems India: ₹692 Crores
⦁ Marico: ₹671 Crores
Major Sells:
⦁ Voltas: ₹1,372 Crores
⦁ Coforge Ltd: ₹1,242 Crores
⦁ Oberoi Realty: ₹1,041 Crores
The investments in KEI Industries and ZF Commercial suggest a growing interest in industrial and commercial growth themes.
Small-Cap Stocks: The Hidden Gems
Small-cap stocks continued to offer opportunities for high-conviction plays.
Major Buys:
⦁ GE Vernova T&D India: ₹1,682 Crores
⦁ Wockhardt Ltd: ₹887 Crores
⦁ PNB Housing Finance Ltd: ₹327 Crores
Major Sells:
⦁ KEC International Ltd: ₹200 Crores
⦁ Aditya Birla Fashion and Retail Ltd: ₹193 Crores
⦁ Atul Ltd: ₹163 Crores
Investments in GE Vernova and Wockhardt underline the potential in energy transmission and pharmaceuticals.
What Does This Mean for You?
Every SIP contribution and mutual fund investment is strategically allocated, reflecting where fund managers see promise or risk in the market. These actions provide a roadmap of potential trends:
⦁ Infrastructure and manufacturing sectors will likely benefit from government policies and long-term growth.
⦁ The cautious approach to IT and AI suggests a shift in expectations for these segments.
⦁ Individual stock movements offer clues about evolving market narratives.
Keeping an eye on these moves can help investors understand where the opportunities lie.
Final Thoughts
November 2024 was dynamic, reflecting both market opportunities and challenges. Mutual funds buying and selling patterns offer valuable insights into the evolving landscape.
What do you think of these picks? Share your thoughts—and keep watching the market closely because it never sleeps!
Disclaimer: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. This article is strictly for educative purposes only.
As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Definedge may or may not own these securities.
About Author: Prasiddh Shroff is a Chartered Financial Analyst (CFA) Charter holder with a strong aptitude for mutual fund and company fundamental analysis. At Definedge, he serves as a Research Analyst and has also played a significant role in developing platforms such as MFZone for mutual fund analysis and investments, as well as Radar for company analysis and stock scanning.)
