Investing in mutual funds allows investors to invest in a basket of stocks without the need to research individual stocks. Every fund house conducts thorough research and includes and excludes stocks as per the fund goals and market trends.
Along similar lines, in this blog, we will discuss the 10 Stocks Parag Parikh Fund House bought and sold in May 2024. Let’s start.
5 Stocks Parag Parikh Funds Bought in May 2024
Here are 5 stocks that Parag Parikh mutual funds invested in May. You need to know this if you invest in mutual funds of this AMC.
1. InfosysTech
○ Sector: Information Technology
○ Why: Despite the global tech slowdown, Infosys shows resilience with a strong order book and improving profit margins.
○ Insight: Parag Parikh sees value in Indian IT’s ability to navigate global challenges.
2. Solar Wind Ltd.
○ Sector: Renewable Energy
○ Why: Recent breakthroughs in energy storage technology could revolutionize this sector.
○ Insight: The fund is betting big on the green energy transition.
3. Hindustan Unilever
○ Sector: Consumer Goods
○ Why: Successful expansion into tier 2 and tier 3 cities, tapping into India’s growing consumer market.
○ Insight: Parag Parikh believes in the long-term growth of India’s consumer sector.
4. Sun Pharma
○ Sector: Pharmaceuticals
○ Why: Robust R&D pipeline and recent FDA approval for a novel diabetes drug.
○ Insight: The Parag Parikh sees potential in India’s pharma innovation and global expansion.
5. HDFC Bank
○ Sector: Banking
○ Why: Successful integration of its housing finance wing and improved asset quality metrics.
○ Insight: Parag Parikh remains confident in India’s financial sector growth.
5 Stocks Parag Parikh Funds Sold in May 2024
Here is what the AMC sold in May.
1. Maruti Suzuki
○ Sector: Automobile
○ Why: Concerns about rising input costs and slow transition to electric vehicles in the budget segment.
○ Insight: The fund is cautious about traditional automakers facing industry disruption.
2. Flipkart
○ Sector: E-commerce
○ Why: Increased competition from Amazon and the rise of quick commerce players in India.
○ Insight: Parag Parikh may be wary of the intensifying e-commerce battle.
3. DLF Ltd.
○ Sector: Real Estate
○ Why: Recent hikes in interest rates impacting home loans and overall property market sentiment.
○ Insight: The fund is treading carefully in the real estate sector amid economic uncertainties.
4. Bharti Airtel
○ Sector: Telecommunications
○ Why: Ongoing tariff wars and concerns about capital expenditure for upcoming 5G spectrum auctions.
○ Insight: Parag Parikh seems cautious about the telecom sector profitability challenges.
5. ITC
○ Sector: FMCG
○ Why: Slow progress in reducing dependence on the tobacco business.
○ Insight: The fund might be looking for clearer growth strategies in its FMCG holdings.
Conclusion
Parag Parikh Mutual Fund House’s strategic decisions to buy and sell stocks in May 2024 reflect its proactive approach to portfolio management and commitment to delivering value to investors. The Parag Parikh mutual fund house seeks to optimize returns and effectively manage risks by decreasing holdings in sectors facing issues, such as real estate, and boosting exposure to promising areas, such as technology.
Remember that researching major fund companies’ actions may be helpful, but you must also do your research and assess your financial objectives and risk tolerance.
