MF assets in minerals and mining stocks more than trebled in November 2010 with expectations of a further rise
Mumbai: Minerals and mining stocks were the most preferred by mutual funds in November 2010. Investments by mutual funds in minerals and mining stocks increased 213 per cent to Rs 2,525 crore from Rs 806 crore at the end of October 2010.
Engineering was the other sector where mutual funds were net investors in the month of November 2010. Engineering assets were up 30 per cent to Rs 587 crore from Rs 451 crore a month earlier.
According to SEBI data, these were two of the ten sectors where mutual funds were net investors during November 2010. The increase in assets was smaller in seven sectors -- telecom, software, chemicals, cement, textiles and cotton, gas and pharmaceuticals. In one category (companies with diversified businesses), the increase in assets was 82 per cent.
The investments by mutual funds in these ten sectors increased by Rs 3,666 crore while the overall equity AUM shrunk by 2.45 per cent to Rs 1,98,712 crore at the end of November 2010 from Rs 2,03,702 crore a month ago.
Gopal Agrawal, Head-Equity, Mirae Asset Global Investment Management, said, “In minerals and mining, funds have increased their exposure because of positive data coming from the US. Also, minerals and metal stocks were available at a very good (low) valuation. The increase in exposure has worked very well for funds.”
Agrawal expects the trend of mutual funds increasing their exposure to minerals and mining companies to continue.
He further said mutual funds are also positive on capital goods and engineering sectors as there is a consensus among fund managers that 2011 will see a big rally led by upswing in investment cycle.
|
Sectors |
Assets as on Nov 30, 2010 (Rs crore) |
Assets as on Oct 31, 2010 (Rs crore) |
Increase in % |
|
Minerals/Mining |
2,525.17 |
806.93 |
212.9 |
|
Diversified |
545.71 |
298.92 |
82.6 |
|
Engineering |
587.32 |
451.63 |
30 |
|
Telecom-Services |
5,050.52 |
4,656.51 |
8.5 |
|
Software |
15,763.64 |
15,024.87 |
4.9 |
|
Chemicals |
1,110.47 |
1,059.02 |
4.9 |
|
Cement |
5,148.15 |
4,968.34 |
3.6 |
|
Textile-Cotton |
590.99 |
574.79 |
2.8 |
|
Gas |
4,305.39 |
4,257.36 |
1.1 |
|
Pharmaceuticals |
13,611.53 |
13,474.31 |
1 |
Though the assets under management of the mutual fund industry witnessed a marginal increase of 2.43 percent in the month of November 2010, in certain sectors like construction, consumer durables, paper, finance, power and telecom (equipment & accessories) mutual funds were net sellers during the month.
|
Sector |
Assets as on Nov 30, 2010 (Rs crore) |
Assets as on Oct 31, 2010 (Rs crore) |
Decrease in % |
|
Telecom - Equipment & Accessories |
266.27 |
606.24 |
56.08 |
|
Paper |
486.36 |
662.6 |
26.6 |
|
Construction |
3,432.07 |
4,126.49 |
16.83 |
|
Finance |
7,731.99 |
8,811.15 |
12.25 |
|
Power |
9,375.99 |
10,440.13 |
10.19 |
|
Consumer Durables |
1,207.73 |
1,343.08 |
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