InvestorQ : What are the themes that mutual funds have been buying and selling in the month of April 2021?
Arya Nanda made post

What are the themes that mutual funds have been buying and selling in the month of April 2021?

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Anjana Aiyar answered.
4 weeks ago
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In April, the sector churn by the mutual funds has been in favour of global plays and moving out of domestic plays. Let me explain. As COVID intensifies, mutual funds are opting to buy stocks in the sectors like metals, chemicals, textiles which are not dependent on the India growth or India consumption story. Clearly, they don’t want to be caught on the wrong foot.

At the same, they have been deliberately underplaying the India specific stories in the month of April 2021. Clearly, if the GDP growth does not pick up as expected in FY22, the worst impacted would be pure consumption plays. Also, funds have been wary of the impact of the pandemic on rural India which could hit a lot of stories ranging from tractors to FMCG products to seeds to two wheelers. That explains the caution.

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