Introduction
In the ever-evolving landscape of the stock market, certain shares stand out due to extensive investments from mutual funds. As of August 2023, only a select few stocks have attracted interest from over 200 mutual fund schemes, including both equity and hybrid funds. This article highlights three prominent stocks—Persistent Systems, Cummins India, and Lupine—that have captured the attention of a multitude of mutual fund managers. We’ll explore what makes these stocks exceptional and why they might be worth considering for investors.
Overview of the Selected Stocks
| Stock Name | Investment by Mutual Funds (in INR crore) | Number of Mutual Fund Schemes | Key Characteristics |
|---|---|---|---|
| Persistent Systems | 17,778 | 205 | Leading software company with a strong growth trajectory |
| Cummins India | 17,583 | 253 | Major manufacturer of diesel engines, offering robust returns |
| Lupine | 17,356 | 215 | Well-established pharmaceutical company with significant growth in recent months |
Details of Each Stock
1. Persistent Systems
Persistent Systems is a leading player in the software industry, recognized for its innovative solutions and commitment to technology advancement. With a total investment of ₹17,778 crore from mutual funds, it has attracted 205 schemes as of the end of August. Notably, funds such as Motilal Oswal Midcap, Motilal Oswal Flexicap, and Edelweiss Focused have invested over 5 percent of their assets in Persistent shares, highlighting its appeal among investment managers.
2. Cummins India
Cummins India specializes in the manufacture of diesel engines and has become a staple in many actively managed midcap mutual fund portfolios. The total mutual fund investment in this stock reached ₹17,583 crore, with an impressive 253 schemes backing it. The stock has demonstrated remarkable performance, yielding a return of 124 percent over the past year. As of October 1, shares traded at ₹3,885, showing a notable rise of over 2 percent. Key funds such as HDFC MNC and ICICI Pru Manufacturing lead the pack in investment.
3. Lupine
Lupine, one of India’s largest pharmaceutical companies, is another stock that has garnered significant mutual fund investment. Its total investment value stood at ₹17,356 crore, with 215 schemes including it in their portfolios. Notably, 26 schemes have increased their investments in Lupine over the past six months, indicating growing confidence in its potential. Notable funds like SBI Innovative Opportunities and Axis Quant are among the top investors. The stock has shown a robust 87 percent return to investors in the last year, showcasing its resilience and growth potential.
Conclusion
Investors looking for promising opportunities in the stock market may find these three companies—Persistent Systems, Cummins India, and Lupine—worthy additions to their portfolio. With the backing of numerous mutual fund schemes and strong performance records, these stocks not only reflect investor confidence but also present a potential for solid returns in the long term. As always, it is advisable for investors to conduct their own research and consult financial experts before making investment decisions.
