New Delhi : Fund managers’ exposure to the IT space surged to Rs 27,596 crore — the highest level in five months — at the end of July amidst soaring equity markets, reports PTI.
As per the latest data available with market regulator Sebi, mutual fund (MF) investments in IT stocks reached Rs 27,596 crore as on July 31, 2014, accounting for 10.55 % of their total equity assets under management (AUM) of Rs 2.61 lakh crore. This was MFs’ highest exposure in IT – mainly in the software services firms – since February, when their total value of investments stood at Rs 28,784 crore.
In June, the investment of MFs in software companies stood at Rs 26,595 crore. A mutual fund is a vehicle made up of a pool of funds collected from investors that buys and sells securities such as stocks, bonds and money market instruments. According to market participants, MFs have been showing interest in the IT stocks since the beginning of the year amidst rising equity market.
Meanwhile, the IT index climbed over 4 % in July this year, while the 30-scrip BSE Sensex rose 2 % during the period. MFs had an exposure of 21.07 % to bank stocks in July, the highest among all sectors.
