PPFAS Mutual Fund, known for delivering consistent long-term returns and a unique strategy, was seen lapping up large private lenders amid the stock market crash, while Reliance group stocks were among the top stocks that it sold in March.
Rajeev Thakkar-led fund house is well known for its flagship PPFAS Flexi-cap scheme, which is also the biggest equity mutual fund in terms of assets under management (AUM). During the stock market crash in March, PPFAS’s cash holdings declined to 22% from 23% on a month-on-month basis but remained the highest across the industry.
HDFC, ICICI, Kotak Bank among top picks
Data from Nuvama Institutional Equities shows that HDFC Bank remained its biggest stock bet in March as it bought the dip in lender’s shares. The fund houses bought HDFC Bank shares worth ₹1,866 crore amid a massive 17.18% decline last month.
HDFC Bank stock had declined due to concerns around the company’s corporate governance practices following the resignation of chairman Atanu Chakraborty on “ethical” concerns. However, reassurances from the management and RBI have helped shore confidence in the stock, which remains 9% higher in April so far.
India’s second-largest private lender, ICICI Bank, was also on PPFAS’ buy list. The fund house bought 46,66,000 shares of the bank worth ₹563 crore. Meanwhile, it added 243,53,000 shares of Kotak Mahindra Bank amounting to ₹861 crore last month.
Coal India and Infosys also emerged as its top bets as the fund house added stakes worth ₹605 crore and ₹788 crore, respectively.
RIL biggest sell of PPFAS
On the flip side, Reliance group stocks — Reliance Industries and Jio Financial Services — were among the top five stocks offloaded by PPFAS. The fund house sold RIL shares worth ₹595 crore and Jio Financial shares amounting to ₹135 crore.
Eternal, formerly known as Zomato, saw the second-highest sales in value terms at ₹189 crore. Meanwhile, Bajaj Finance and Balkrishna Industries saw stake sales worth ₹169 crore and ₹137 crore, respectively.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.