Top 5 stocks that mutual fund managers are buying aggressively
Mutual fund managers continued their robust equity purchases for the fifth consecutive month in December 2023, pushing their total net equity investments over ₹1.7 trillion in the calendar year. Fund managers bought equities worth ₹230 billion (bn) until 28 December compared to ₹180 bn in November 2023, data from the Securities and Exchange Board of India (Sebi) showed. With inflows into equity MF schemes remaining positive for the past 34 months, domestic MFs have emerged as a pillar of support for the stock market.
In this article, we look at the top five stocks that have seen an increase in mutual fund holdings in the December 2023 quarter. These stocks are filtered using Equitymaster’s stock screener. Leading the list is Computer Age Management Services (CAMS), India's largest registrar and transfer agent of mutual funds, with an aggregate market share of approximately 70% based on mutual fund average assets under management.
The variety of services provided by CAMS plays an important role in developing and maintaining its clients' market perception. A substantial portion of its revenue, approximately 90%, is generated from its mutual fund operations and the remaining 10% is sourced from diverse non-MF ventures, including insurance repository, Camspay, account aggregation, and more. The latest shareholding pattern for CAMS reveals a notable increase in mutual fund holding stake, rising from 3.8% in the September 2023 quarter to 11.3% in December 2023.
This can be attributed to the company's strong growth target. CAMS is targeting revenue growth of 14-15% in the current financial year and a profit growth of around 15-16%. The Chennai-based company aims to sustain its Ebitda (earnings before interest, tax, depreciation
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