India's Investment Giants Continue Their Global Tech Domination

Indian mutual funds are showing no signs of slowing down their aggressive pursuit of global technology giants. Data for July reveals a continued, robust buying spree into some of the world's most influential companies, cementing a trend of increasing foreign equity exposure among Indian fund managers.

The tech titans leading this investment charge include familiar names: Alphabet (Google's parent company), Meta Platforms (Facebook's parent), Microsoft, Apple, and Amazon.

While the pace of buying for some individual stocks saw a slight moderation compared to June's peak, the overall conviction in these global behemoths remains undeniably strong.

In July, Indian MFs significantly increased their stakes in Apple, acquiring shares worth Rs 103 crore, a figure comparable to June's Rs 111 crore.

Amazon also remained a favored destination, attracting Rs 160 crore in investments, following Rs 253 crore in the preceding month. Alphabet, despite a slight dip from June's Rs 114 crore, still commanded substantial inflows of Rs 69.4 crore. Meta Platforms saw Rs 14.6 crore worth of investments, down from a whopping Rs 340 crore in June, while Microsoft attracted Rs 2.1 crore, a notable decrease from Rs 119 crore in June.

Beyond the "FANG" stalwarts, Indian fund houses also broadened their horizons, directing capital towards other promising international players.

Stocks like Netflix, Nvidia, Tesla, Taiwan Semiconductor Manufacturing Company (TSMC), and Broadcom also featured prominently in their investment portfolios, underscoring a diversified yet tech-centric global strategy.

This sustained interest isn't just anecdotal; it’s reflected in the growing asset under management (AUM) for foreign equities.

According to Nuvama Wealth Management, the total foreign equity AUM of Indian mutual funds climbed to Rs 23,200 crore in July, an impressive increase from Rs 22,400 crore in June. The overall foreign AUM, encompassing both equity and other international assets, reached Rs 25,600 crore in July. This expansion signals a strategic pivot by Indian fund managers, who are increasingly looking beyond domestic borders to capture growth opportunities in the global market.

The top foreign stocks commanding the largest allocations within Indian mutual fund portfolios in July underscore this focus: Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta Platforms.

These companies, known for their innovation, market dominance, and strong financial performance, continue to be the cornerstone of Indian fund managers' global investment thesis, promising diversification and potentially higher returns for Indian investors.