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Mutual funds tank up on financial services and retail stocks

August 19, 2022

Mutual funds tank up on financial services and retail stocks
Mutual funds continued to plough in money into equities in July, after making purchases of nearly $2 billion in June. And, they are betting on financial services firms the most, as their stake in the overall mutual fund holdings increased to 31.56% from 30.56% in July.

According to data from AMFI and ICICI Direct, mutual funds invested over $1 billion in July, and their biggest purchases included Zomato, HDFC Life Insurance, and United Phosphorus, among others.

Zomato’s purchases came after the stock experienced a major correction after the lock-in period ended in July, resulting in a 22% correction.

Another interesting entry into the list is Wipro, which missed analyst estimates in terms of growth and margin. Its rivals TCS and Infosys have seen mixed movements, with some fund houses paring their stakes while others have added.

Overall, the Indian mutual fund industry invested ₹8,900 crore into Indian equities in July, down from ₹15,500 crore in June.

“After having seen lows in previous months, the sharp rally in July led to many investors shying away from putting incremental money and few exiting as well during recovery,” said a report by ICICI Direct.

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