Mutual funds have been increasing their stake in recent months, betting on the country’s long-term growth potential. Fund managers are increasingly eyeing stocks with strong growth prospects and consistent performance. Shriram Finance, REC Limited, Aurobindo Pharma, Polycab India Limited, and ACC Limited stand out as attractive investments. These stocks saw over Rs 3,098.60 crore of inflow in the month of September. Shriram Finance saw the highest buying interest and saw an inflow of Rs 870.7725 crore.
India’s economic outlook, favourable demographics, digitalization boom, and government reforms are propelling bullish sentiment among mutual funds and fund managers. With an IMF-projected GDP growth of 7.4% in FY24, India’s young population, vast internet user base, and government initiatives like GST, IBC, and PLI schemes are driving optimism in the country’s growth prospects.
Top Stocks Attracting Fund Managers’ Attention
Shriram Finance, India’s largest retail asset financing NBFC, has demonstrated impressive growth, with sales and net profit growing at CAGRs of 23% and 34%, respectively, over the past three years.
REC Limited, a Central Public Sector Undertaking, has also exhibited strong growth, achieving a CAGR of 10% in sales and 31% in net profit over the same period.
Polycab India Limited, a leading manufacturer of cables and wires, has recorded consistent growth with a CAGR of 17% in sales and 18% in net profit over the past three years.
Aurobindo Pharma manufactures and markets active pharmaceutical ingredients, generic pharmaceuticals, and related services. Its sales and net profit have grown at a CAGR of 2% and -12%, respectively, in the last three years.
ACC Limited, a member of the Adani Group, has seen steady growth in sales, with a CAGR of 12% over the past three years.
These stocks offer investors a combination of strong financials, growth potential, and established market positions, making them attractive investment options.
Mutual funds are investing in a variety of sectors in India, including IT, financials, consumer discretionary, Telecom and healthcare. These sectors are expected to benefit from India’s strong economic growth and favourable demographics.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.