For Quick Alerts
For Daily Alerts

Mutual Funds' Exposure To Banking Stocks Reduced By More Than Rs 21,600 Cr


As per the data available at the Securities and Exchange Board of India (SEBI), the holding of banking stocks in mutual funds reduced by more Rs 21,600 crore for the month of September, driven by the correction in equity markets.

Mutual Funds' Exposure To Banking Stocks Reduced By More Than Rs 21,600 Cr

The data showed that the overall deployment of equity funds in bank stocks was at Rs 1,88,620 crore at September-end when compared to Rs 2,10,251 crore in the preceding month. A PTI report said that this was the lowest level of deployment since June when equity funds' exposure to bank stocks stood at Rs 1.87 lakh crore. In May this year, it was at Rs 1.89 lakh crore.

The exposure to banking stocks in percentage terms was at 19.78 percent of equity AUM last month as against 20.21 percent in August.

During the same period, the BSE Bankex index slumped by 12 percent, while the exchange's benchmark Sensex fell a little over 6 percent. Despite the decline in exposure, banking stocks still remain among the most preferred sectors among fund managers, due to the high weightage attached to the index.

The second-most popular sector among fund mangers is finance. The deployment in finance software stocks by equity fund managers was at Rs 87,519 crore, followed by software (Rs 88,453 crore), consumer non-durables (Rs 71,072 crore) and auto (Rs 46,920 crore).

Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. They invest in stocks, bonds, money market instruments and similar assets.

Read more about: mutual funds
Story first published: Monday, October 22, 2018, 15:23 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more