Watch out these top 5 stocks that fund managers bought in the month of August

Mutual funds have been increasing their stake in recent months, betting on the country’s long-term growth potential. Some of the stocks which the fund managers have bought are HDFC Bank Limited, Coforge Limited, Bharti Airtel Limited, Interglobe Aviation Limited and Reliance Industries Limited were among the top stocks which saw over Rs 17,941 crore of inflow. HDFC Bank saw the highest buying interest and saw an inflow of Rs 5,929.77 crore.

There are a number of reasons why mutual funds and fund managers are bullish on India. First, the Indian economy is expected to grow at a faster pace than other major economies in the coming years. The International Monetary Fund (IMF) forecasts that India’s GDP will grow by 7.4% in FY24, the fastest among major emerging economies.

Second, India has a young and growing population, which is a key driver of economic growth. India’s median age is 28.7 years, compared to 38.4 years in the United States and 45.5 years in Japan.

Third, India is a major beneficiary of the global shift towards digitalization. India has the world’s second largest internet user base and the fastest-growing smartphone market. This is driving growth in sectors such as e-commerce, fintech, and IT services.

Fourth, the Indian government is implementing a number of reforms to boost economic growth and attract foreign investment. These reforms include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the Production-Linked Incentive (PLI) schemes.

Mutual funds are investing in a variety of sectors in India, including IT, financials, consumer discretionary, Telecom, and healthcare. These sectors are expected to benefit from India’s strong economic growth and favorable demographics.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.