Mutual Funds bet big on banks, exposure up about 50% from FY18-end

Mutual funds (MFs) are shuffling their sectoral exposures for 2019-2020 as they look to improve their portfolio returns. MFs’ exposure to the banking sector jumped about 50 per cent as of March 31, 2019, from a year ago, amid expectations of a sharp earning recovery. The exposure to the automobile sector declined in the same period, with growth expected to remain sluggish.  

MFs’ exposure to banks stood at Rs 2.6 trillion at the end of FY19 compared to Rs 1.7 trillion as of March 31, 2018. The exposure to auto and auto ancillaries, on the other hand, was Rs 65,675