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18 hours ago
Mutual fund investors alert! Your fund managers mint money even when most stock portfolios are bleed
Summary
Indian stock market: The Indian stock market has remained highly volatile amid global and domestic uncertainties, including developments around the India-US trade deal and the escalating US-Iran conflict.
Both benchmark indices — the BSE Sensex and the Nifty 50 — have declined more than 12% since the start of 2026. The ongoing geopolitical tensions in the Middle East have further weighed on sentiment, with both indices sliding nearly 10% over the past month as rising crude oil prices and foreign capital outflows triggered sharp market volatility.
However, on the other hand, mutual fund investors have remained a little safe amid ongoing volatility. Here's an example of how -
According to data available on the BSE, major mutual fund houses made significant investments in Inox Wind through a bulk deal on August 8, 2023.
Institutional heavyweights Nippon India Mutual Fund and ICICI Prudential Mutual Fund acquired large blocks of shares at ₹208 in August 2023, even though the stock is currently trading much lower.
Data shows that Nippon India purchased 7.35 million shares, while ICICI Prudential Mutual Fund bought 5,048,076 shares. The sellers in the bulk deal were Devansh Trademart and Inox Wind Energy.
Notably, the shares of Inox Wind are currently trading at around ₹78, which is about 62% below the bulk deal price.
Currently, the fund managers are still sitting at gains of roughly 48% despite the fall in the share price. Here's the catch -
In May 2024, Inox Wind executed a massive 3:1 bonus issue, effectively quadrupling the number of shares held by these Mutual Funds. A 3:1 bonus issue means shareholders received three additional shares for every one share held, decreasing the buying price to one fourth of their buying price i.e. ₹52 [{208/(1+3=4)}].
When you account for this multiplier, the "cost-to-acquisition" for these institutions dropped from ₹208 to an adjusted price of approximately ₹52 per share.
As Inox Wind share price today is around ₹77 apiece. The net gain incurred due to the 3:1 bonus shares is 48% [{(77-52)/52} x 100].
Inox Wind share price has largely remained negative in the near-term. The stock has shed 23% in a month and 36.47% in terms of year-to-date (YTD).
The multibagger stock has further declined 51.46% in the last one year.
However, Inox Wind shares have proven to be a multibagger stock by delivering 217% in three years and 363.48% in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes o...Read More
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Both benchmark indices — the BSE Sensex and the Nifty 50 — have declined more than 12% since the start of 2026. The ongoing geopolitical tensions in the Middle East have further weighed on sentiment, with both indices sliding nearly 10% over the past month as rising crude oil prices and foreign capital outflows triggered sharp market volatility.
However, on the other hand, mutual fund investors have remained a little safe amid ongoing volatility. Here's an example of how -
According to data available on the BSE, major mutual fund houses made significant investments in Inox Wind through a bulk deal on August 8, 2023.
Institutional heavyweights Nippon India Mutual Fund and ICICI Prudential Mutual Fund acquired large blocks of shares at ₹208 in August 2023, even though the stock is currently trading much lower.
Data shows that Nippon India purchased 7.35 million shares, while ICICI Prudential Mutual Fund bought 5,048,076 shares. The sellers in the bulk deal were Devansh Trademart and Inox Wind Energy.
Notably, the shares of Inox Wind are currently trading at around ₹78, which is about 62% below the bulk deal price.
Currently, the fund managers are still sitting at gains of roughly 48% despite the fall in the share price. Here's the catch -
In May 2024, Inox Wind executed a massive 3:1 bonus issue, effectively quadrupling the number of shares held by these Mutual Funds. A 3:1 bonus issue means shareholders received three additional shares for every one share held, decreasing the buying price to one fourth of their buying price i.e. ₹52 [{208/(1+3=4)}].
When you account for this multiplier, the "cost-to-acquisition" for these institutions dropped from ₹208 to an adjusted price of approximately ₹52 per share.
As Inox Wind share price today is around ₹77 apiece. The net gain incurred due to the 3:1 bonus shares is 48% [{(77-52)/52} x 100].
Inox Wind share price has largely remained negative in the near-term. The stock has shed 23% in a month and 36.47% in terms of year-to-date (YTD).
The multibagger stock has further declined 51.46% in the last one year.
However, Inox Wind shares have proven to be a multibagger stock by delivering 217% in three years and 363.48% in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes o...Read More
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Download the Mint app and read premium stories
AI Description
The article highlights concerns for mutual fund investors as fund managers continue to earn significant fees despite poor performance of stock portfolios. It underscores the impact of market volatility on investments.