Mutual Fund Update: Stocks that attracted fund managers in October 2019
In October 2019, the financial sector inched over other sectors to be at the top of the fund managers' buying list and was followed by the technology, FMCG, and the energy sector.
| Stock Name | Sector | Asset Class | Month | Net Qty Bought | Approx. Buy Value (In Cr) |
| Infosys Ltd. | Technology | Large-Cap | Oct-19 | 3,14,04,026 | 2341.53 |
| Bandhan Bank Ltd. | Financials | Large-Cap | Oct-19 | 4,08,65,602 | 2256.19 |
| ICICI Lombard General Insurance Co Ltd. | Financials | Large-Cap | Oct-19 | 1,21,42,737 | 1549.81 |
| Larsen & Toubro Ltd. | Infrastructure | Large-Cap | Oct-19 | 78,00,015 | 1149.52 |
| Axis Bank Ltd. | Financials | Large-Cap | Oct-19 | 1,36,34,991 | 968.98 |
If we look at the above table, we can see that in October 2019, the financials sector acquired a solid spot among the top 5 buys of the fund manager, with a total approximate buying of Rs. 4,774.98 crores. In the financials sector also, Bandhan Bank Ltd., ICICI Lombard General Insurance Co. Ltd., and Axis Bank Ltd., have made their way to the top 5 buys with an approximate buying Rs. 2,256.19 crores, Rs. 1,549.81 crores, and Rs. 968.98 crores, respectively.
If we look at the overall sector-wise buying that took place in October 2019, the financials sector has been on the top with an approximate buying of Rs. 9,186.10 crores. The technology, FMCG, energy, and the infrastructure sectors trailed closely with approximate buying of Rs. 2,741.08 crores, Rs. 2,438.73 crores, Rs. 1,902.52 and Rs. 1,419.78 crores, respectively.
The market cap-wise analysis divulges that, in October 2019, the largecap stocks were on the top, followed by midcap and smallcap stocks. The largecap stocks registered an approximate buying of Rs. 18,035.04 crores while midcaps and smallcaps recorded Rs. 4,333.79 crores and Rs. 2,626.35 crores, respectively, in approximate buying.
The intention of the above analysis is only to understand the activity of mutual funds and gauge the fund managers' approach. It is, in no means, a recommendation to buy or sell. It is always advisable to have a financial plan in place, which must be followed with discipline. Investments in mutual funds should always be based on your risk assessment.