Mutual funds subscribe to IPOs, up play in health, chemical stocks

Fund managers have shown high conviction in Initial Public Offers during August. They subscribed to the issues of Chemplast Sanmar, Nuvoco Vistas, Devyani International, CarTrade Tech and Krsnaa Diagnostics as many of these companies have unique business models and leadership positions within their industries. Leading fund houses have followed a bottom-up approach while picking stocks amid concerns over high valuations. The fund houses also increased exposure to wellplaced companies in healthcare, chemicals and telecom sectors where valuations are lower than the broader market. Max Healthcare Institute, Bharti Airtel and Escorts are some of their picks during the month.