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Private banks continue to remain the biggest overweight for equity MFs

Telecom, utilities, and healthcare are other top weights for MFs

Topics
Mutual Funds | Equity mutual fund | stock market trading

Sundar Sethuraman  |  Thiruvananthapuram 

savings, investment, tax, insurance, policy, Mutual fund, MF
Oil & gas has been the biggest underweight (UW). The sector has 16.7 per cent in the Nifty. However, its MF allocation is just 12.2 per cent

Private banks continue to remain the biggest overweight (OW) for equity (MFs), although the OW stance has come off its peak. At present, 25 per cent of MF investments in Nifty stocks are in private banks. Telecom, utilities, and healthcare are other top weights for MFs. On the other hand, oil & gas has been the biggest underweight (UW). The sector has 16.7 per cent in the Nifty. However, its MF allocation is just 12.2 per cent.

Experts say the UW stance is on account of Reliance Industries (RIL). “RIL’s weight in the index is nearly 15 per cent. However, the stock remains under-owned, partly due to technical factors,” said a fund manager. Fast moving consumer goods (FMCG) is another space fund managers are underweight on. Experts say the stance stems from valuation and growth concerns. MFs have pruned their holdings in the non-banking financial companies (NBFC) too, going 240 basis points (bps) underweight.

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First Published: Thu, October 15 2020. 00:25 IST
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