Revamping Strategies: Stocks Added by Bottom-Quintile Funds

Mutual funds that have struggled in recent years are now making strategic moves to boost their performance. By adding stocks with potential for future gains, these funds aim to turn around their fortunes. Here’s a look at some of the notable stocks newly included by funds in the bottom quintile based on 10-year returns.

Focus on Revitalization

Funds in the bottom quintile have been reassessing their portfolios to find opportunities for improvement. This analysis includes funds across various categories such as large-cap, large & mid-cap, mid-cap, multi-cap, flexi-cap, and small-cap. The study highlights the additions made by underperforming funds like UTI Flexi Cap, Nippon India Vision, Franklin India Bluechip, DSP Midcap, Sundaram Mid Cap, and Aditya Birla SL Small Cap.

Key Stock Additions

  1. Oil & Natural Gas Corporation (ONGC)

    • Added by: Nippon India Vision, Union Flexi Cap, and others
    • Number of funds adding: 5

  2. Prestige Estates Projects

    • Added by: Union Small Cap, Sundaram Mid Cap, and others
    • Number of funds adding: 5

  3. Ajanta Pharma

    • Added by: UTI Flexi Cap, Nippon India Vision, and others
    • Number of funds adding: 4

  4. Kotak Mahindra Bank

    • Added by: DSP Top 100 Equity, LIC MF Flexi Cap, and others
    • Number of funds adding: 4

  5. Max Financial Services

    • Added by: Aditya Birla SL Equity Advantage, Franklin India Equity Advantage, and others
    • Number of funds adding: 4

  6. Power Grid Corporation of India

    • Added by: LIC MF Large Cap, Franklin India Bluechip, and others
    • Number of funds adding: 4

  7. Trent

    • Added by: Baroda BNP Paribas Multi Cap, Union Flexi Cap, and others
    • Number of funds adding: 4

  8. Zomato

    • Added by: Aditya Birla SL Equity Advantage, PGIM India Large Cap, and others
    • Number of funds adding: 4

  9. Info Edge (India)

    • Added by: Union Flexi Cap, DSP Midcap, and others
    • Number of funds adding: 3

  10. Page Industries

    • Added by: LIC MF Flexi Cap, Franklin India Bluechip, and others
    • Number of funds adding: 3

  11. Voltas

    • Added by: Aditya Birla SL Equity Advantage, DSP Midcap, and others
    • Number of funds adding: 3

  12. Devyani International

    • Added by: Franklin India Bluechip, Sundaram Mid Cap, and others
    • Number of funds adding: 3

Objective and Strategy

These additions reflect a strategic shift by underperforming funds, aiming to enhance their portfolios with stocks that are anticipated to deliver better returns in the future. The funds are looking to leverage these new investments to improve overall performance and regain their competitive edge.

As these funds work on their turnaround strategies, investors should closely monitor these changes to gauge potential impacts on performance.

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