Mutual Funds Boost Cash and Make Strong Buying Moves in October

Nearly every major mutual fund in India turned active in October, piling into the demerged entity of Tata Motors and LG Electronics India, one of the month’s largest issues. The data, released by Nuvama Alternative and Quantitative Research, shows a clear shift in fund-house strategies, with both buying and heavy profit booking visible across sectors.

Equity mutual funds also increased their cash balance by ₹5,200 crore, taking overall cash to ₹2.44 trillion, led primarily by Motilal Oswal MF and PFAS MF. SBI MF, HDFC MF and ICICI Prudential MF also raised their cash levels by ₹1,700 crore–₹2,100 crore.

This rise in cash levels signals cautious positioning even as funds selectively entered high-conviction bets.

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SBI Mutual Fund: Major Buys in Tata Motors Demerger and Adani Power

SBI MF, India’s largest fund house, placed large bets in October.
Its biggest additions were:

• Tata Motors’ demerged entity – ₹2,607 crore

• Adani Power – ₹2,302 crore

• Bajaj Finance – ₹1,907 crore

At the same time, SBI MF reduced its exposure to:

• ICICI Bank – ₹1,654 crore

• HDFC Bank – ₹1,541 crore

• Adani Ports – ₹806 crore

New investments were made in Canara Bank, Adani Energy Solutions, Dabur, and BSE, while it completely exited NTPC and Tata Elxsi.

HDFC Mutual Fund: Focus on SKF India and Tata Motors Demerged Unit

HDFC MF also took strong positions during October. Its top buys include:

• SKF India – ₹1,304 crore

• Tata Motors’ demerged entity – ₹1,072 crore

• HDFC Bank – ₹710 crore

However, it trimmed positions in:

• Maruti Suzuki – ₹429 crore

• NTPC – ₹351 crore

• TCS – ₹257 crore

New positions were added in ABB, Canara HSBC Life, and Lenskart, while it completely exited HCC, Coal India, IREDA, Advanced Enzyme, and Go Fashion.

ICICI Prudential MF: Biggest Buyer of ICICI Bank

ICICI Prudential MF emerged as a strong accumulator of:

• ICICI Bank – ₹3,392 crore

• Tata Motors’ demerged entity – ₹2,066 crore

• HDFC Bank – ₹1,345 crore

Its major reductions included:

• Bharti Airtel – ₹2,155 crore

• SBI – ₹1,626 crore

• Larsen & Toubro – ₹1,598 crore

New stocks added were Aditya Birla Sun Life AMC, Can Fin Homes, Thyrocare, JSW Energy, and Astra Microwave, while it made full exits from Chennai Petro, TD Power, and ICICI Lombard.

Kotak Mutual Fund: Bets on ITC, Shriram Finance, and BSE

Kotak MF added major positions in:

• ITC – ₹1,669 crore

• Shriram Finance – ₹768 crore

• BSE – ₹614 crore

It reduced holdings in:

• ICICI Bank – ₹842 crore

• Axis Bank – ₹640 crore

• Bharti Airtel – ₹623 crore

New entries included Lenskart, LG Electronics India, and Rubicon Research, while full exits were made from MTAR Tech, Travel Food Services, and Vikram Solar.

Axis Mutual Fund: Strong Entry into LG Electronics India

Axis MF increased its stakes in:

• LG Electronics India – ₹600 crore

• Kotak Mahindra Bank – ₹415 crore

• AU Small Finance Bank – ₹301 crore

It pared holdings in Avenue Supermarts (₹390 crore), Bajaj Finance (₹340 crore) and Uno Minda (₹230 crore).
New additions included AU Small Finance Bank, Ujjivan Small Finance Bank, and CESC, while full exits were made from Sumitomo Chemicals and VA Tech Wabag.

Aditya Birla Sun Life MF: New Bets in Adani Power and Mankind Pharma

ABS MF strengthened its positions in:

• Adani Power – ₹332 crore

• LG Electronics India – ₹236 crore

• Mankind Pharma – ₹223 crore

It reduced stakes in ITC (₹254 crore) and JSPL (₹249 crore), while Tata Capital was added as a new position.
Utkarsh Small Finance Bank was completely exited.

DSP Mutual Fund: Major Buy in Shriram Finance and TCS

DSP MF took large positions in:

• Shriram Finance – ₹390 crore

• TCS – ₹369 crore

• Tata Motors’ demerged entity – ₹258 crore

It trimmed positions in Bajaj Finance, Bajaj Finserv, and Tata Motors Passenger Vehicles.
New additions included Canara HSBC Life, while Godrej Industries was a complete exit.

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