According to SEBI data, MFs investments in banking stocks stood at Rs76,061 crore as of January 2015, accounting for 21.4% of the total AUM of Rs3.55 lakh crore
Continuing with their bullish stance on banking stocks, mutual fund managers had raised exposure to the sector to a historic high of over Rs76,000 crore in January.
In comparison, their investments in banking stocks were at Rs30,339 crore in January 2014.
Mutual funds (MFs) collect funds from various investors for investing in securities such as stocks, bonds, money market instruments and similar assets.
According to data available with the Securities and Exchange Board of India (SEBI), MFs investments in banking stocks stood at Rs76,061 crore as on 31 January 2015, accounting for 21.4% of their total equity assets under management (AUM) of Rs3.55 lakh crore.
This also marks the fourth consecutive rise in MF industry’s exposure to banking stocks.
The previous high was in December last year when investments in the sector stood at Rs72,835 crore.
MFs had been raising their exposure to banking shares since January last year but their investment level in the sector dropped in September.
The industry again had increased the exposure in October and the momentum continued till January 2015.
Software was the second most preferred sector in January with an exposure of Rs35,463 crore, followed by pharmaceuticals (Rs24,366 crore), auto (Rs23,178 crore) and finance (Rs21,993 crore).
According to market participants, the ongoing market rally might see mutual fund assets getting diversified.