Asset Management Companies (AMCs) play a pivotal role in investing funds pooled from individual investors in securities, aiming to achieve optimal returns in exchange for fees. Mutual Fund companies specialise in managing investors’ assets, encompassing stocks, bonds, and other securities. Financial experts within these entities assess stock performance and strategically invest to maximise returns. As the year 2023 comes to an end, let’s take a look at the most favourite stocks of AMCs.
According to a Moneycontrol report, Tata Consultancy Service (TCS) and ICICI Bank are among the most owned stocks by Mutual Funds. The report, quoting data from Emkay Mutual Fund Tracker, mentioned that collectively 40 mutual fund houses held stakes in these two companies, as of November 30, 2023. Following closely are Infosys and Maruti Suzuki, with 39 AMCs owning shares in these entities. In the FMCG sector, Titan emerges as the most-owned stock by MFs, followed by ITC and Hindustan Unilever (HUL).
This year, Sun Pharma has notably become the preferred choice in the pharmaceutical domain, while Bajaj Finance stands out as the favoured pick among Non-Banking Financial Companies (NBFCs), with approximately 35 AMCs investing in the company.
State Bank of India stands as the lone public sector bank owned by 30 AMCs in India, surpassing the majority of Mutual Fund Companies in the nation. Alongside SBI, the National Thermal Power Corporation (NTPC) ranks among the most purchased PSU stocks by AMCs. Despite TCS being a prominent stock in 2023, the company faced challenges due to high-interest rates and negative consumer sentiment in the US and Europe. Global macroeconomic uncertainties have rendered TCS vulnerable in the US and EU markets. Nevertheless, the IT company reported deal wins totalling $11.2 billion (approx. Rs 931 billion) this year, marking the second-highest-ever Total Contract Value (TCV) for the company.
As AMCs strategically diversify their portfolios, these stock ownership insights offer a glimpse into the market dynamics shaping investment decisions. The choices made by AMCs reflect sector preferences and strategic positioning amid evolving economic conditions and global uncertainties.
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