MFs pare weighting in health care and pharmaceutical companies in June

Fund managers reduced their weighting in health care and pharmaceutical companies in June, with exposure to the sector falling by 50 basis points (bps) on a month-on-month basis. The reduction in weighting has come after five consecutive months of jumps. 

In June, the exposure had reduced to 7.8 per cent from 8.3 per cent in the previous month. Besides health care, IT saw a dip in the weighting.

Meanwhile, the allocation towards the oil & gas sector saw the steepest jump of 40 bps, but fund managers say this could be largely on account of the rally seen in Reliance Industries. Year-to-date, the stock has gained 28 per cent. 

Private banks and non-banking financial companies saw 40 bps and 50 bps jump in weighting, respectively. Weighting in an equity portfolio indicates how much of the exposure a fund manager is taking on a particular sector or stock.