This was the highest exposure of MFs in IT – mainly in the software services firms – since February, when their total value of investments in the sector stood at Rs 28,784 crore. In June, the investment of MFs in software companies stood at Rs 26,595 crore.
A mutual fund is a vehicle made up of a pool of funds collected from investors that buys and sells securities such as stocks, bonds and money market instruments. According to market participants, MFs have been showing interest in the IT stocks since the beginning of the year amidst rising equity market.
Meanwhile, the IT index climbed over 4 per cent in July this year, while the 30-scrip Bobay Stock Exchange (BSE) Sensex rose 2 per cent during the period. MFs had an exposure of 21.07 per cent to bank stocks in July, the highest among all sectors. In absolute numbers, their investment in banking shares was over Rs 55,000 crore.
Besides, they have an exposure of Rs 17,542 crore in pharmaceutical sector, followed by Rs 14,441 crore in auto and Rs 14,359 crore in finance.