MFs split on IT revival as outlook improves but uncertainties remain

Split wide open as sector exposure swings from defensive 5% to bold 18%

Fund managers are divided on the prospects for beaten-down information technology (IT) stocks, reflected in the wide variance in equity mutual funds’ (MFs) sector exposure. 

An analysis by Nuvama Alternative & Quantitative Research shows that while six large fund houses were overweight the sector relative to its weight in the Nifty 200 index, five were underweight as of October 2025. UTI MF had the highest exposure at 17.8 per cent, while SBI MF sat at the bottom with 5 per cent. 

As the broader equity market softened after September 2024, IT stocks saw the steepest pullback. 

As of October 31,