Tech weight in MF portfolio at 25-month low in September

September witnessed notable changes in stock allocation of mutual funds. On a month-on-month (MoM) basis, weights of consumer, healthcare, telecom, PSBs, retail and capital goods increased, while that of oil, tech, private banks, metals, utilities, insurance and NBFCs moderated, a report by Motilal Oswal Financial Services said.

Consumer’s weight rose to an 18-month high of 7.1% ( +30 bps MoM, +40 bps YoY) in September. Healthcare’s weight, after declining to a 30-month low in August, climbed to 6.6% (+30 bps MoM and -60 bps YoY). Weight of oil & gas slipped to a six-year low of 6% (-50 bps MoM; -80 bps YoY). Technology’s weight continued to moderate and was at a 25-month low of 9.8% (-20 bps MoM; -210 bps YoY) during the month under review.

Stocks that saw the maximum increase in value MoM were Bharti Airtel (Rs 3,170 crore), Sun Pharma (Rs 1,950 crore), Adani Enterprises (Rs 1,690 crore), Indian Hotels (Rs 1,420 crore) and Ambuja Cements (Rs 1,410 crore).

In terms of decline in value on a MoM basis, seven of the top 10 stocks were from the global cyclical and private financial space – Reliance Industries (Rs 9,170 crore), ICICI Bank (Rs 5,100 crore), HDFC Bank (Rs 4,820 crore), Tata Motors (Rs 2,090 crore), HDFC (Rs 2,070 crore) and Tata Steel (Rs 1,900 crore).

Almost 88% of the top 25 equity-oriented schemes closed lower MoM in terms of net asset value. These include Axis Focused 25 Fund (-4.6% MoM change in NAV), Axis Long Term Equity Fund (-4.1% MoM), HDFC Top 100 Fund (-4% MoM), Kotak Flexi Cap Fund (-3.2% MoM) and SBI Bluechip Fund (-3.2% MoM). Only three schemes in top 25 closed higher MoM – SBI Small Cap Fund (1.5%), Nippon India Small Cap Fund (1.1%), and HDFC Small Cap Fund (0.6%).