MF exposure to Adani stocks via active funds 2 times more than passive funds: Report

While the mutual fund industry has by and large stayed away from the Adani group stocks over the last 1 year due to skyrocketing valuations, a check on their overall exposure showed that investments through active funds were higher than those through passive funds.

The active funds contribution as a percentage of the total MF investments in Adani Group stocks is about 72%, while that of passive funds is a little over 28%, data shared by fintech firm Fisdom showed.

In the backdrop of the steep fall in stock prices since January 25 following a massive strike by US-based short seller Hindenburg Research against the group, the fintech firm drew an analysis of its impact on the MF investments.


As a percentage of their total net assets under management as of December 22, MF holding in Adani stocks through both active and passive schemes was 0.64%.

There are more than 100 passive schemes and over 200 active schemes with an investment in Adani group stocks, Fisdom said.

In value terms, the top 10 funds having exposure to the group are SBI MF, Kotak MF, Nippon India MF, ICICI Prudential MF, UTI MF, HDFC MF, Tata MF, Quant MF, and Axis MF.


Adani Enterprises and Adani Ports and Special Economic Zone that are part of the Nifty50 index, have an overall weightage close to 1%. Along with these two stocks, Adani Transmission and Adani Green Energy that are part of the Nifty 100 index, have an overall weightage of 2.1%.

For SBI MF, 63% of the exposure to Adani stocks is through passive schemes, and the rest is through active schemes.

Meanwhile, for Kotak MF and Tata MF, about 98% of the exposure is through active schemes, while for Quant MF, NJ MF, Mahindra Manulife, Baroda BNP Paribas, and PPFAS MF, their entire exposure is through active schemes.

A check on whether the AMCs exposed the most through active schemes have an open naked exposure or are their holdings hedged showed that Kotak MF, SBI MF and ICICI AMC have hedged 80-90% of their Adani group holdings.

Hence, their portfolios were insulated from the steep fall in the stock prices.

One may not have to worry much about the hedge positions, according to the fintech firm, as fund managers took the positions considering the spread and not fundamentals.

“There is no underlying risk attached to it as cash and future positions converge on expiry,” it said.

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