There are some shares that are always the favorites of mutual funds in India. The reasons for these mutual funds owning them is that they are on the high growth trajectory and are somewhat less risky than others. Here is a list of 8 shares that are high on the mutual fund buying list.
If you check the portfolio of any large cap mutual fund, HDFC Bank would be right there on top. The bank has a habit of reporting more than 20 per cent growth in net profits quarter on quarter. A low level of NPAs, when the banking sector is under NPA stress has made this an eternal favorite of fund managers.
The bank shares are currently trading at Rs 1247.
Infosys is another favorite with fund managers, though not the biggest bet like HDFC Bank. Fund managers keep shuffling their IT portfolio, though at the moment Infosys has to be the best bet in the space.
Again, a highly transparent company, something that fund managers like. The stock of Infosys was last trading at Rs 1072 on the NSE.
Larsen And Toubro
This stock again keeps moving among the top 5 in and out of mutual fund schemes. However, funds like HDFC Equity which is one of the largest large cap mutual funds in the country has it among its top 5 portfolio along with many other fund houses.
The stock of Larsen and Toubro was last seen trading at Rs 1520 on the NSE.
Despite worries over Brexit, the Tata Motors shares have shown remarkable recovery. Solid growth rates in the US is what is making this stock a favorite of domestic mutual funds once again.
It is now among the top 5 in several mutual fund schemes now. The stock of Tata Motors was last trading at Rs 508, on the NSE.
Unlike HDFC Bank, which is always at the top on the mutual fund list, ICICI Bank sometimes drops lower. The bank has not had the best quarter in the last couple of years, badly hit by non performing assets.
The shares were heavily sold into by FIIs, but is once again on the shopping list after reports of stake sale in subsidiaries.
This bank is very much like HDFC Bank. It has a solid retail portfolio and very low non performing assets. It is not only a favorites of mutual funds, but, also of FIIs. The stock is last trading at Rs 1187 on the NSE.
Once a favorite of domestic institutions, the shares have dropped and fund houses remain a little worried over US FDA worries for the pharma sector in general.
The stock of Sun Pharma is now trading at Rs 835 on the NSE.
Reliance Industries is now increasingly becoming the pick for fund managers.
Superb gross refining and petchem margins and solid performance by the retail division could boost share prices. Eagerly awaited is the full throttle on the Reliance Jio front.