Auto gains, IT slips in equity MFs' allocations

Money managers have turned cautious towards technology space due to muted guidance

The Rs 5-lakh crore equity mutual fund (MF) industry has raised its bets on the automobile sector, while information technology (IT) stocks seem to be losing some favour. Auto and auto ancillaries are the second-biggest bets for IT companies with double-digit allocation of their total equity assets under management (AUM). 

Banking continues to remain the most-preferred sector with fund managers increasing their exposure to nearly 21 per cent from around 20 per cent at the start of last year.

Technology stocks have slipped in ranking with equity funds now allotting only 8.6 per cent of their AUM compared to around 9.8 per