Top MF buy and sell - December report card

Equity-oriented mutual funds witnessed a record inflow of Rs 25,077 crore in December, which was more than double compared to Rs 11,615 crore of inflow in November.

The equity and equity-oriented mutual fund schemes received record monthly inflow in December 2021 despite Omicron uncertainty as investors continued to prefer equity for better returns and utilise sharp correction to buy stocks.

The fall in the equity market started in November and continued in December as well, correcting more than 10 percent from record-high levels. However, it witnessed a sharp recovery in the last week of December, providing a good entry point for investment. Thus far, the market has gained 10 percent from its December closing low.

Equity-oriented mutual funds witnessed a record inflow of Rs 25,077 crore in December, which was more than double compared to Rs 11,615 crore of inflow in November. Even “ex-NFO, inflows were at multi-year high at Rs 12,600 crore,” said ICICI Direct in a recent note.

SIP inflows, too, continued rising month-on-month (MoM), coming in at a record high of Rs 11,305 crore in December 2021 against Rs 11,000 crore in November. Majority schemes including sectoral, thematic, midcap, and multicap received strong inflow during the last month of 2021.

“Most of the investors found the correction in the market as a good entry point which is evident from a higher quantum of fund mobilised which for December stood at Rs 43,579.50 crore compared with Rs 29,090.72 crore in November, thus highlighting the positive sentiments among investors and their willingness to invest in market dips,” said Himanshu Srivastava, Associate Director – Manager Research at Morningstar India.

ICICIdirect lists 10 stock each in Large, Mid, and Smallcap space where fund managers bought and sold the most in December:

Largecap Theme:

Top 10 largecaps in which fund managers made highest buying include IRCTC, Indus Towers, One97 Communications, JSW Energy, and Tata Power Company, and Wipro among others.

However, PB Fintech, Macrotech Developers, Hindustan Zinc, FSN E-Commerce Ventures (Nykaa), Eicher Motors, Adani Green Energy etc among 10 largecaps which saw highest selling by fund managers in December.

Midcap Theme:

Top 10 midcaps in which asset management companies made highest buying include CRISIL, IndiaMART InterMESH, L&T Finance Holdings, Indian Hotels, and Tata Communications.

On the flip side, Vodafone Idea, YES Bank, Bank of India, Indian Energy Exchange, and Indian Railway Finance Corporation were among the top 10 midcaps which failed to lure fund managers in December.

Smallcap Theme:

Top 10 smallcap stocks in which mutual funds made highest buying included HFCL, Data Patterns India, IIFL Wealth Management, Graphite India, and Go Fashion India.

The top 10 smallcap stocks in which mutual funds made highest buying included HFCL, Data Patterns India, IIFL Wealth Management, Graphite India, and Go Fashion India.

RBL Bank, PNB Housing Finance, Latent View Analytics, BSE, and Care Ratings, on the other hand, were among the top 10 stocks which saw the maximum selling by asset management companies.

The above-mentioned list includes several newly listed stocks such as One97 Communications (Paytm), PB Fintech, FSN E-Commerce Ventures (Nykaa), Data Patterns India, Go Fashion India, and Latent View Analytics in November-December.

Among the lot, Latent View Analytics gained the most, rising more than 200 percent from its issue price, followed by Nykaa which was up over 80 percent, Go Fashion gained nearly 50 percent while Data Patterns rallied more than 25 percent. However, Paytm was the biggest loser among them, falling more than 50 percent from issue price, and PB Fintech which fell over 6 percent.

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