Mutual funds are taking a shining to new-age stocks

economictimes.indiatimes.com:

domestic mutual funds bought shares worth Rs 253.61 crore. With this, Honasa Consumer has emerged as the latest addition to the growing list of new-age stocks finding traction among domestic mutual funds.

An analysis of shareholding patterns of new-age firms such as Zomato, Paytm, Delhivery, Nykaa and PB Fintech, showed mutual funds have increased their holdings in several of these companies slowly but significantly over the last four quarters.

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In the case of food delivery platform Zomato, the share of mutual funds has jumped to 10.56% as of September 30, from 5.72% as of December 31, 2022.

Similarly, mutual funds also more than doubled their stake in omnichannel beauty and fashion retailer Nykaa's parent company FSN E-Commerce Ventures to 10.62% from 4.06% in the same period.

New-age logistics firm Delhivery also saw an increase in mutual fund stake to 14.12% from 11.12%.


Market experts pointed to the deep correction witnessed by these stocks in 2022 as the reason behind domestic mutual funds boosting exposure to these companies.

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“In 2022, some of these new-age stocks were beaten down from their peaks because of firstly, the risk of trade driven by the global environment, and secondly, the increased supply coming in from selling by existing investors. These were the reasons why some of these stocks went down 40-50% from their peaks, and that created an