Fund managers invest Rs 3,098 crore in these top 5 mid-cap stocks; should you invest too?

Shriram Finance saw the highest buying interest and saw an inflow of Rs 870 crore.

Mutual funds are increasing their stake in various stocks, betting on the country's long-term growth potential. Stocks like Shriram Finance, REC Limited, Aurobindo Pharma, Polycab India Limited, and ACC Limited are attracting investments due to their strong growth prospects and consistent performance. These stocks saw over Rs 3,098.60 crore of inflow in September. India's favourable economic outlook, demographics, digitalization boom, and government reforms are driving bullish sentiment among mutual funds.

Top Stocks Attracting Fund Managers' Attention

Shriram Finance, India's largest retail asset financing NBFC, has demonstrated impressive growth, with sales and net profit growing at CAGR of 23 per cent and 34 per cent, respectively, over the past three years.

REC Limited, a Central Public Sector Undertaking, has also exhibited strong growth, achieving a CAGR of 10 per cent in sales and 31 per cent in net profit over the same period.

Polycab India Limited, a leading manufacturer of cables and wires, has recorded consistent growth with a CAGR of 17 per cent in sales and 18 per cent in net profit over the past three years.

Aurobindo Pharma manufactures and markets active pharmaceutical ingredients, pharmaceuticals, and related services. Its sales and net profit have grown at a CAGR of 2 per cent and -12 per cent, respectively, in the last three years.

ACC Limited, a member of the Adani Group, has seen steady growth in sales, with a CAGR of 12 per cent over the past three years.

Mutual funds are diversifying their investments across various sectors in India, including IT, financials, consumer discretionary, telecom, and healthcare, anticipating significant gains from the country's robust economic growth and favourable demographic trends.

Disclaimer: The article is for informational purposes only and not investment advice.