There were distinct changes in equity mutual funds in June, with specific stocks being favored and others removed from the portfolios. Recent fund flow analyses show that mutual funds bought Vishal Mega Mart which was recently listed, and Asian Paints emerged as a leading buy. Along with these macro changes, there were some large cap stocks such as ICICI Bank and IT giant Infosys which were sold off significantly in June. This pattern could indicate a tactical shift, selling these stocks or might reflect a particular market outlook on these companies. As a benchmark for market movements, investors tend to follow the buying and selling activities of the mutual funds. Even though trends like these are really helpful in determining market direct, mutual funds should not be the sole basis for making investment decisions.
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