How Sectors And Companies Stack Up In MF Portfolios
An investor looks at various parameters before investing in a mutual fund. The portfolio of the mutual fund remains one of the most important parameters among them. However, it is not the only parameter based on which you can invest in mutual funds. In fact, many a time, it receives least weightage among other parameters while investing in mutual funds. So, how important is portfolio of a fund? Let's find out.
At times people look at buying mutual funds like they buy any other product from the market. The big brands or big shops or a big retail chain provide better goods or services than others. The logic behind the same is that the business grows big only when their products give higher level of customer satisfaction. The same might not be true for the mutual fund schemes. The investors may not be buying the funds that have the best of names. The reason being they believe that the price has already been discovered and the returns provided by these funds will be average, but there is no supporting evidence to prove it. In the current situation, the opposite seems to be playing out. Funds holding companies with better names and brands are performing better than others.
Investors also look at AUM before investing in a fund. However, AUM does not give you much information. You need to dive deep to get information about its portfolio constituents. We have looked at it from various aspects to understand things better.
The facts given below would help you to understand top AMCs' (asset management companies') equity holdings, which sector tops among mutual funds, which are the top companies in which mutual funds are invested in, and much more.
As per our findings, the top AMCs that have equity holdings of more than Rs.1 lakh crore are SBI AMC, HDFC AMC, Reliance Nippon Life AMC and ICICI Prudential AMC having equity holdings of Rs.1,67,491 crore, Rs.1,56,312 crore, Rs.1,02,981 crore and Rs.1,14,563 crore, respectively.
When it comes to sectors, banks top the charts with total equity holdings of Rs.2,30,293.72 crore, followed by IT consulting & software and pharmaceuticals, with total equity holdings of Rs.79,957.96 crore and Rs.45,339.04 crore, respectively. Now, if we look at top companies from the respective top sectors, then from the banks, HDFC Bank tops with equity holding of Rs.60,595.48 crore and from IT consulting & software, Infosys tops with equity holdings of Rs.8,205.25 crore, and from pharmaceuticals, Sun Pharmaceutical Industries tops with equity holdings of Rs.18,820.72 crore.
Top 5 Sectors Where Equity MF Has Exposure