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No profit, no interest

A constant fall in profits is the reason mutual fund companies no longer find these stocks attractive enough

Profit, no doubt, comes down as the most important factor when investors look at a company. A company may have a great historical record or a good management, but if it isn't generating profit, it may cease to attract interest of the market.

Institutional investors including mutual funds, insurance companies and FIIs have superior access to information. Going by the same logic, we decided to look at BSE 500 companies where mutual funds have shed their stake over a period of three month. After analysing their profits, we short-listed 21 such companies where mutual funds significantly lowered their holdings owing to diminishing profits.