Demonetisation drive catches fund managers off guard in November

Equity fund managers in India have been caught on the wrong foot on the back of the government’s demonetisation drive. Several of their top buy calls in October have yielded negative returns in November. Of the top 10 picks of October, only Tech Mahindra has given positive return (1.3 per cent). Others, on an average, have declined nearly eight per cent. Put together, fund managers poured in Rs 4,071 crore in the top 10 most bought stocks. Aurobindo Pharma was the most sought after counter, as fund managers added a whopping 10.3 million additional shares for Rs 837 crore into their portfolios, as the pharma sector was cracking in October. However, the call went terribly bad as Aurobindo cracked further 12 per cent this month. LIC Housing Finance and PNB Housing Finance also saw a similar movement. 

Equity Fund Managers’ recent Calls Go Haywire