Top MFs up stake in group companies

Fund managers are attempting to play safe, preferring selective large-cap companies

India’s top mutual fund (MF) houses' exposure to shares of their group companies has gone up over the past one year. The Rs 19-lakh-crore MF industry is dominated by ICICI Prudential Mutual Fund, HDFC MF, SBI MF, Birla Sun Life MF and Reliance Nippon MF. All these investment houses are backed by strong corporates and banks.

India's largest fund house ICICI Prudential MF’s equity schemes’ exposure to its parent company, ICICI Bank, has gone up 107 basis points in one year to 3.03 per cent in March. Similarly, collectively, schemes of Reliance Nippon Mutual Fund has increased its stake in