Mid-Cap Stocks: Mutual funds invest in these high-quality mid-cap stocks

MUMBAI: Mutual fund managers have been consistent buyers of about 20 mid-cap stocks in each of the past eight quarters amid sharp volatility in the stock market. Stocks like V-Mart Retail, Bharat Forge,,,,,, Uno Minda, and Sudarshan Chemicals, among others, have seen an increase in the mutual fund’s holdings in every quarter over the past two years.

According to analysts, the steady increase in mutual fund assets reflects the confidence of fund managers in these businesses.

Jitendra Upadhyay, analyst at Bonanza Portfolio, said, “Fund managers look at companies that have consistently increased sales and profits or increased P&E ratios from quarter to quarter. “A better way to manage stock market corrections is to stay invested for the long term, especially if the money you invested in the market is not needed for the next five years.”



Domestic MFs have bought shares worth Rs 2.22 lakh crore in the past one year after selling shares worth Rs 90,000 crore last year.

Funds

While the Nifty and Nifty Midcap 100 have gained around 6% in the past one year, the Nifty Smallcap 100 has fallen over 14% during this period. Stocks in which mutual funds have increased their holdings have consistently returned an average of 8% over the past one year and 115% over the past two years.

Vinod said, “Capital average has become reasonable due to the carnage in the last few months. The global economy is thinking about the risk of recession, but the probability of a recession in India is low. It is a good time for stocks and Chinese cherry sectors.” Nair, Head of Research,

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