Every mutual fund does the monthly portfolio disclosure. Every mutual fund disclose their last month holdings by the next month of 10th.
Have built a tool over it to screen stocks based on various parameters. Will release it in few months.
Probable reason behind it seems to work is that
If a stocks get added my multiple mutual funds houses in a month as I think it takes the stock into Stage 2 of the Stage Analysis as a lot of accumulations happens.
They also seems to have the knowledge arbitrage.
Screened stocks have high probability of due diligence of the management done.
I have seen them predicting the cycle correctly as I have seen them buying industrials, auto ancillary and banks at the nearly correct time.
There are many more insights that we can know just looking at the mutual fund portfolios.
Final conclusion can give after some time as I still backtesting some of the results.
It does not happen much that a stock gets added by many mutual funds in the same month. Hence the data that I have is less. Barely double digit in a year.
One correction → Mahindra CIE Automotive, Kirloskar Oil Engine and Kajaria Ceramics that I mentioned above were added in the month of march.
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