Automotive sector investment funds have ranked second best among sector investment fund categories in the last year, providing an average return of 30 percent. Among sector fund categories, PSU Bank ETFs topped the list.
There are two Exchange Traded Funds (ETFs) – ICICI Pru Nifty Auto ETF and Nippon India Nifty Auto ETF and an index fund that tracks the Nifty Auto index – ICICI Pru Nifty Auto Index Fund. Five active programs following the theme of transportation and logistics are also offered. Experts believe that automakers’ strong performance was aided by strong demand across segments, improving mix, operating leverage and lower commodity prices.
Deepak Jasani, Head of Retail Research, HDFC securities, said: “Things are turning around in the automotive sector after the semiconductor shortage in 2022 and early 2023. Demand has been strong after Covid-19. The use of personal transportation vehicles increased and customers began to spend on new vehicles. Due to long waiting times, manufacturers withdrew the discounts they had previously given, causing realizations to increase. The softening in raw material prices caused the operating margin to increase. Manufacturers increased their prices to reflect the increase in raw material inflation. “Increasing Government spending has led to an increase in CV and construction equipment sales”. Here are the most popular auto and auto parts stocks among active mutual fund managers. Only actively managed programs were considered. The data shown below is as of September 30, 2023. Source: ACEMF.
Maruti Suzuki India
Number of active plans holding stocks: 265
Market value: Rs 30,575 crore
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Mahindra and Mahindra
Number of active plans holding stocks: 209
Market value: Rs 18,418 crore
Tata Motors
Number of active plans holding stocks: 186
Market value: Rs 13,438 crore
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TVS Motor Company
Number of active plans holding stocks: 143
Market value: Rs 13,031 crore
Samvardhana Motherson International
Number of active plans holding stocks: 114
Market value: Rs 7,280 crore
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Hero MotoCorp
Number of active plans holding stocks: 105
Market value: Rs 6,299 crore
Schaeffler India
Number of active plans holding stocks: 104
Market value: Rs 7,277 crore
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Bajaj Auto
Number of active plans holding stocks: 96
Market value: Rs 3,933 crore
UNO Minda
Number of active plans holding stocks: 91
Market value: Rs 5,236 crore
Eicher Motors
Number of active plans holding stocks: 79
Market value: Rs 3,519 crore
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