These Stocks Went Out of Favour with Fund Managers. Do you Own Them?

Not all stocks perform equally. Mutual fund managers handpick stocks based on their potential. In the past six months, some stocks lost their potential. Check out which ones.

Portfolio Assessment

Actively managed mutual fund schemes, especially those investing primarily in equity, keep changing the portfolio to maximise returns and minimize volatility risks. Fund managers, experts in their fields, buy stocks which have the potential to grow and sell those that have either achieved the intended target price or if the sector has lost its growth potential. While the stock market has grown in recent months, some stocks have underperformed. As such, fund managers have reduced their exposure in such stocks. If you have these stocks in your portfolio, its time for you to review your investments. After all, expert fund managers cannot be wrong!

Also Read - Check out the difference between passive and active mutual fund schemes

  • While the stock market has grown tremendously in recent times, some stocks have lost their growth potential.
  • Fund managers of actively managed mutual fund schemes have reviewed their portfolios and cut their exposure in the identified stocks
  • The stocks belong to different sectors and specific companies and fund managers have reduced their exposure based on the last 6-month performance
  • Check whether or not you own these stocks. If you do, it might be time to sell them off and look for better alternatives.

Fund managers of equity and hybrid mutual fund schemes have made changes in their portfolios. As such, the exposure to the identified stocks has reduced considerably over the last six months.

Here’s a table showing –

  • The current market value of mutual fund portfolios as of June 2023
  • The change in the portfolio over the last six months
  • The sector which has seen a major reduction
  • Stocks where the reduction has been the maximum 
Market value of the portfolio as of June 2023

What Should Investors Do?

Fund managers are experts in their fields. If they believe that some stocks are not worthy of retaining in the portfolio, they have done their research and analysis to reach the decision. So, investors can consider the expert assessment and assess their portfolios.

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The Bottom Line 

If you own these stocks, you might reduce your exposure to avoid a possible loss. The stocks might recover in future but for the time being they are proving to be unattractive and investors need to review their portfolios to make the necessary changes. 

Also Read – A single mutual fund or multiple schemes, which one should you pick?

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.


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