Equity largecap fund managers have taken a fancy to a few well known stocks. We try to decode what’s on the radar of the top three equity large cap funds, on the basis of their size. In the equity largecap space, SBI ETF NIfty 50, Aditya Birla Sun Life Frontline Equity Fund and SBI Bluechip fund are the largest funds with AUM of Rs 23,214 crore; Rs 18,948 and Rs 15,570 respectively as at the end of August 2017. What is common among them?
All the funds have taken large exposures to HDFC Bank, Larsen & Toubro, ITC and State Bank of India shares, data available with Value Research online showed. SBI ETF Nifty has nealy 10% of its AUM invested in HDFC Bank, while SBI Bluechip has invested 8.4% of its total AUM in the HDFC Bank stock. Aditya Birla Sun Life Frontline Equity has 4.75% of its total assets into the bank. HDFC bank shares have returned more than 53% in the year so far. The shares were trading at Rs 1,862.05 on Monday morning, up by 0.7% on NSE.
ITC seems to be the next bluechip on the radar of these largecap fund managers. According data from Value Research, SBI ETF Nifty has invested 6.4% of the fund’s AUM in the stock followed by Aditya Birla Sun Life FEF, which has invested more than 4.5% of its assets in the stock. SBI Bluechip has invested 3.25% in the stock. Notably, ITC shares have corrected by more than 10% in the last three months, and were at Rs 270.54 up by more than 0.5% on Monday morning.
From the construction space, Larsen and Toubro is the top pick of these funds, with two of the three funds investing more than 3.5% of their assets into the shares. Larsen and Toubro shares have had a good run on the bourses so far with returns of more than 34% since January.
SBI Bluechip fund and SBI ETF Nifty have invested more than 2.5% into State Bank of India shares, while Aditya Birla FEF has invested 1.64% into the bank shares. The SBI shares have been a disappointing pick for the managers with returns of just 8.5% since January. The shares were trading at Rs 272.8, up by more than 0.5% on NSE. Among the three largest funds discussed above, Aditya Birla Sun Life FEF has posted the best returns in the year so far with returns of more than 16%.