Equity MFs invest Rs 3,380 crore in IPOs in December

From the current holdings of mutual funds, ICICI Bank, Wipro, Infosys, and HDFC Bank were among the top additions by fund houses. On the other hand, HCL Tech, RBL Bank, and Bharat Electronics were among the top reductions, the report showed.

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Equity mutual funds continued to redistribute funds in initial public offerings. (IPOs) of companies during December, despite feebleness across the secondary markets amidst feeble international sentiment. The inquisitiveness among Indian investors for Indian equities, positive returns, and the IPO frenzy in 2021 have primarily led to consistent investments by mutual funds in IPOs, said experts.

The interest among Indian investors for Indian equities, positive returns, and the IPO frenzy in 2021 have primarily led to consistent investments by mutual funds in IPOs, said experts. However, the investments saw a drop from Rs 4,050 crore deployed in November to Rs 3,380 crore in December. The interest among Indian investors for Indian equities, positive returns, and the IPO frenzy in 2021 have primarily led to consistent investments by mutual funds in IPOs, said experts.

From the current holdings of mutual funds, ICICI Bank, Wipro, Infosys, and HDFC Bank were among the top additions by fund houses. On the other hand, HCL Tech, RBL Bank, and Bharat Electronics were among the top reductions, the report showed.

“The broad outlook for the markets has been positive despite the ups and downs, and appetite for equities among Indian investors continues to remain high. However, the month-over-month drop is mainly due to the number of issuances falling in December. Going forward, fund houses will continue to track offers based on the business models, growth potential, alongside other factors, irrespective of their sectors,” Akhil Chaturvedi, chief business officer, Motilal Oswal AMC, told FE.

Overall, in December 2021, 12 companies successfully boosted to more than Rs 16,700 crore from investors. The total amount raised by public issuances during the year stood above Rs 1.2 lakh crore.

An Equity Fund is a Mutual Fund Scheme that invests primarily in shares/stocks of companies. They are likewise known as Growth Funds. Furthermore, Equity Funds can again be divided as per Market Capitalization, i.e. how much the capital market values an entire company’s equity.

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