Mutual funds (MFs) suffered a loss of ₹6,192 crore in the Adani Group stocks last as both the active and passive funds reduced their exposure to these scrips, reported Business Line.
Overall, the value of mutual fund investment in Adani Group stocks plunged 25 per cent last month to ₹18,995 crore as against ₹25,187 crore logged in December 2022, according to data sourced from Fisdom Research – a wealth tech platform.
Mutual fund exposure
SBI Mutual Fund, which had the maximum exposure to Gautam Adani controlled companies, and Nippon India MF saw their investment fall 26 per cent each to ₹4,124 crore ( ₹5,600 crore) and ₹1,533 crore ( ₹2,071 crore).
Kotak MF and ICICI Prudential MF investments reduced 24 per cent and 16 per cent to ₹1,779 crore ( ₹2,329 crore) and ₹1,735 crore ( ₹2,065 crore), respectively.
UTI MF and Quant MF witnessed their investments dip to ₹1,453 crore ( ₹1,938 crore) and ₹947 crore ( ₹1,276 crore), while that of HDFC MF and Tata MF were down at ₹1,327 crore (1,590 crore) and ₹1,193 crore ( ₹1,401 crore).
Varying strategies
Interestingly, a few fund houses like ICICI MF, Tata MF, Aditya Birla MF, Nippon MF and Franklin Templeton India have taken fresh position in Adani Group companies through their long-term retirement schemes and high risk funds to take advantage of the valuation after the steep fall in stock prices especially in companies with a strong manufacturing base and domestic market focused businesses.
Most actively managed equity funds have reduced exposure to companies hit by short seller Hindenburg Research report by 40.3 percentage points due to fall in valuation. Similarly, passive funds have trimmed their exposure by 0.12 to 3.92 percentage points.