Introduction
December 2022 saw Average Assets Under Management (AAUM) of Indian Mutual Fund Industry climb up to touch Rs. 40,76,171 crores. The industry’s Assets Under Management (AUM) stood at Rs. 39,88,735 crores in Dec ’22.
Although 2022 saw muted performance from most mutual funds as compared to 2021, experts are optimistic of an improved performance in the new year.
So, where did mutual funds park your funds in Dec ’22? Here’s a look at the top 10 favorite stocks of mutual funds in the last month of 2022.
Which were the top 10 stocks bought by mutual funds?
The table below shows the top 10 stocks picked by mutual funds in Dec’22:
| No | Stock | No of Shares Held | Market Value of Shares Held (Cr.) | How many schemes held the stock |
| 1 | ICICI Bank Ltd | 1,62,73,33,741 | Rs. 1,44,972 | 541 |
| 2 | HDFC Bank Ltd | 83,70,80,559 | Rs. 1,36,283 | 511 |
| 3 | SBI | 1,17,11,40,319 | Rs. 71,869 | 469 |
| 4 | Infosys Ltd | 64,60,64,427 | Rs. 97,443 | 467 |
| 5 | Reliance Industries Ltd | 38,25,09,898 | Rs. 97,439 | 446 |
| 6 | Axis Bank Ltd | 69,63,20,405 | Rs. 65,020 | 442 |
| 7 | Bharti Airtel Ltd | 59,79,81,116 | Rs. 48,206 | 411 |
| 8 | L&T | 24,54,91,809 | Rs. 51,206 | 406 |
| 9 | Maruti Suzuki Ltd | 3,49,24,129 | Rs. 29,319 | 384 |
| 10 | Sun Pharma | 29,99,13,444 | Rs. 30,032 | 359 |
How do mutual funds pick stocks?
Mutual fund managers use a combination of some investment strategies while selecting stocks for the portfolio. They may adopt a variety of different investment strategies as per criteria like the fund’s objective, manager’s personal investment style, risk-reward profile, etc.
Mutual fund managers focus on both technical and fundamental indicators while picking stocks for the portfolio. The stocks that a fund manager chooses are mainly determined by the category of fund he/she manages and the objective that they are trying to accomplish on behalf of investors.
Should investors pick stocks that are mutual fund favorites?
New investors who are starting to learn about the stock markets can emulate their portfolio as per a mutual fund. While picking stocks that are included in a mutual fund portfolio, investors must carefully weigh aspects like:
- Personal risk appetite
- Long-term goals
- Risk-reward preferences
Apart from these, an investor must also conduct a basic research about the company before investing in it.
Planning to invest in mutual funds?
Take a look at important details on AMFI’s investor corner.
Why invest in mutual funds?
Mutual funds offer investors an opportunity to participate in the stock markets as per their risk appetite. Apart from wealth creation, mutual funds offer investors the benefit of portfolio diversification, good long-term returns, professional portfolio management, flexible investment options, and more.
Some mutual funds also allow investors to benefit from tax saving and liquidity. Since these are regulated by SEBI, investors are protected from fraudulent transactions.
Conclusion
While creating a portfolio of stocks, investors must be careful not to mimic a mutual fund portfolio as it can lead to losses if not managed optimally. Investors can, however, carefully study the top favorite stocks of mutual funds before including some of them in their portfolio. It is also important for investors to carefully assess the right prices at which these stocks should be bought.
FAQs
Stocks can offer good long-term returns if studied carefully and bought/sold at the right price levels. These can also offer the benefit of portfolio diversification.
To invest in stocks, a beginner investor must open a Demat account with a reputed broker. Before buying stocks, investors must do a detailed study of the company.
There is no minimum amount needed to invest in share markets. It depends on the stock being bought and the quantity of stocks.
Beginner investors must consider their total capital base and amount available for stock market investments before buying stocks. Before investing, it is important to note that the money invested in stocks may turn into losses.
A stock investment may or may not be profitable. This depends on the company’s performance, the price at which it was bought, market conditions, and other economic factors.
