Even as the 30-share Sensex trades near fresh all-time high levels, mutual funds have failed to deliver decent returns in the last one year. Notably, the top performing large cap mutual funds SBI ETF Nifty 50, Aditya Birla Sun Life Frontline Equity Fund and SBI Bluechip Fund have taken a liking to HDFC Bank shares. SBI ETF Nifty 50 has delivered more than 12% returns in the last one year, way ahead of the other two, data from Value Research showed.
While the returns deviate, there’s one thing common among these large cap funds– their love for HDFC Bank shares. SBI ETF Nifty has invested more than 10% of its assets in HDFC Bank shares. Notably, Aditya Birla Sun Life Frontline Equity Fund too has loaded up on the shares, investing nearly 8.3% of its assets into the stock. SBI Bluechip Fund has invested 8.7% of its total AUM in the shares. HDFC Bank shares have been a top holding for the mutual fund industry for quite some time now. Out of 55 equity analysts listed on Bloomberg who track this stock, 50 have given it a buy, three recommend hold and two sell.
“I think HDFC Bank has been the darling of the street for a long time. 5.5% of the overall equity allocations of mutual funds is in HDFC Bank. This is by far the largest holding, and month on month we’ve seen additions to that. The street is preferring to invest in private banks, and this is clearly the outshining star in the space,” Kaustubh Belapurkar, Director Fund Research, Morningstar had noted in an interview with ET Now recently.
Notably, HDFC Bank emerged as the top holding for at least 43% of the funds across nine equity diversified categories or 107 schemes and is among the top 5 holdings of 53% or 133 funds, as on 31 May 2018.