Want to know sector in which mutual funds are interested ?
Buying a stock entails becoming a partly owner
of the company. As a partial owner, you must think about the other investors in
the company. The shareholding pattern reveals the specific ownership of a
company. More significantly, shareholding patterns frequently predict future
price movement.
The importance of shareholding pattern, how it
impacts shareholders, and stock price movement will be discussed in the
following article.
In general, there are two types of
shareholding patterns:
1.
Promoters and Promoter Group: Promoters are the people
who founded the business. They can be domestic or international. Promoter
relatives who own shares are also included in the promoter group.
2.
Public Group: The public shareholding pattern is made
up of stockholders other than promoters. This category includes companies such
as FIIS, DIIS, Banks, Money Managers, Mutual Funds, Insurance Companies, and
Individuals.
The term "public shareholders"
refers to stockholders who are not promoters. Mutual funds, insurance companies,
and investment banks are among the public shareholders. They buy a large number
of shares, which has a significant impact on the stock market's movements. They
are thought to be well-informed and experienced. As a result, small investors
pay attention to their footprints. All of these factors contribute to the
importance of mutual fund holdings. As a result, we are providing you with the
following sector-by-sector mutual fund position as of 31-June-20:
In the
following sectors, mutual funds have increase or made new positions:
Fund
flows into equities resumed on June 21, albeit at a lesser pace than in May
2021, with profit booking being substantial as indices approached all-time
highs. In the BFSI industry, investors showed increasing interest in SBl Cards
and HDFC Life, as well as other major firms including Indus Towers, Havells
India, and JSW Steel.The top three domestic funds have taken new stakes in
freshly listed IPOs such as Sona BLW Precision, Dodla Dairy, and KIMS.
According
to the information provided above, mutual funds are primarily interested in
finance, manufacturing, energy, and consumer non-durables.
In the
following industries, mutual funds have reduced their holdings:
Following
the trend from the previous month, funds continued to churn their portfolios
and record profits in June 2021. Adani Enterprises, Asian Paints, ONGC, Titan,
Hindustan Zinc, JSW Energy, and Vodafone Idea were among the prominent names
that saw strong sales.
Mutual
Fund holdings on the basis of market capitalization as of June 30, 21:
During
June 2021, funds took new positions in recently completed IPOs and pursued a
focused select stock buying strategy in mid-caps. Sona BLW Precision, Shyam
Metallics & Energy, and KIMS are three key IPO equities (also included in
the mid-cap group) where fresh investments were taken. Indian Bank, Manappuram
Finance, Escorts, Shriram Transport Finance, and Amar Raja Batteries are among
the other mid-caps that have seen increased buying activity.
