Top mutual funds including SBI Mutual Fund, HDFC Mutual Fund, Reliance Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund and Kotak Mahindra Mutual Fund who feature among the 10 largest mutual funds in India by AUM (Assets Under Management) have increased stake in HDFC bank as at the end of September-2017. Notably, HDFC Mutual Fund and Reliance Mutual Fund which are the second and third largest mutual funds in India are among the most prominent investors in the stock. As at the end of September, HDFC Mutual Fund, which has an asset size of 2.69 lakh crore, had increased its stake to 1.15% from 0.993% earlier, data from Value Research showed. Reliance Mutual Fund has increased its stake to 0.903% from 0.879% earlier. The fifth largest mutual fund in India, SBI Mutual Fund, with an asset size of 1.88 crore as on September 30th, had increased its stake to 1.558% in HDFC Bank from 1.405% held at the end of June 2017.
Aditya Birla Sun Life Mutual Fund holds 0.73% in the scrip, as compared to 0.52% held earlier. The 9th largest fund Kotak AMC holds 0.59% in HDFC Bank as at September end, up from 0.54% held at the end of previous quarter. Axis Mutual Fund too has added to its positions in HDFC Bank with total holdings at 0.41%, up from 0.36% held at the end of the June quarter. HDFC Bank shares have returned more than 48% since January, while the equity benchmark Sensex is up by 24% in the same period. HDFC Bank shares have outperformed even BSE Bankex, which has returns of 35% in the year so far.
Interestingly, HDFC Bank is among the top 10 scrips held by mutual funds overall. In an interview to ET Now, Kaustubh Belapurkar, Director Fund Research, Morningstar Investment Adviser India Private Ltd said last week, “There are five banks in the top 10, and HDFC, so six from pretty much the same sector…HDFC Bank, ICICI Bank, Kotak Mahindra, IndusInd, are some of the large plays where managers have been aggressively adding positions. Axis has been one counter where we have seen a little bit of selling, in the start and the middle of the year.” In the same interview, the expert shared the other scrips in the top 10. “The you have ITC, Maruti Suzuki ,Infy (Infosys) in top 10,” Kaustubh Belapurkar told ET Now. Notably, India’s most valued company, Reliance Industries does not feature in the list. “If you just look at the list of top 10 stocks held by funds, Reliance used to be one among top 10, it has actually slipped out of the top 10 holdings,” Kaustubh Belapurkar pointed out.