Press Trust of India The mutual fund industry is betting big on IT firms as its equity exposure to the sector climbed to an all-time high of nearly ₹71,000 crore in April amid depreciating rupee and market volatility.
Since January, MF houses have raised their weightage on the sector, which gets a major chunk of its revenues in US dollars. MFs’ allocation to software stocks stood at ₹70,773 crore as on April, accounting for 7.37 per cent of their total equity assets under management of ₹9.6 lakh crore, SEBI data showed.
In comparison, the exposure was at ₹64,265 crore in March. It was at ₹42,023 crore in April 2017.
At current levels, the MF industry has the highest exposure to the software sector since August 2009. Data is not available for sector-wise exposure before August 2009, when the equity funds had deployed ₹11,913 crore (6.71 per cent) in the shares of software companies.
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