How Mutual Fund Managers Changed Holdings Amid The Worst Market Decline Since Covid

As Indian equities recorded their largest monthly decline in October on the back of the largest ever selling by foreign portfolio investors, surpassing even the figures recorded during March 2020, domestic institutions countered the outflows led by record high investments through mutual funds.

Even as the mutual fund industry saw the highest ever monthly inflows into actively managed equity mutual fund schemes, their cash balances dwindled for the first time so far this fiscal due to the record high investments.

With the churn in markets, mutual fund managers also reallocated their holdings across sectors, as well as across stocks.

These were the stocks which saw the largest change in overall allocation across actively managed equity mutual fund schemes.

As stocks in the banking and financial space weathered the decline better than the overall market, three of the top five stocks which saw their overall allocations increase belonged to the sector.

Overall allocation in HDFC Bank Ltd. saw a 0.31% rise, followed by ICICI Bank Ltd. at a similar figure, and State Bank of India Ltd. with a rise of 0.19%.

Among stocks which saw a decline in overall allocation, Maruti Suzuki India Ltd. took the top spot with a 0.12% fall, followed by Cholamandalam Investment Finance Co. at 0.11%.

Reliance Industries Ltd. also made the list as the stock recorded its worst month in over two years.