Equity mutual funds (MFs) are betting on defensive sectors. The weight of defensive sectors in MFs allocation rose to a 14-month high of 26.3 per cent in April. The weight of consumer-facing companies, IT (Information Technology) and healthcare rose 0.2 per cent, 0.1 per cent and 0.1 per cent, respectively, during the month.
Capital goods, healthcare, cement, automobiles and metals were among the sectors where ownership by fund houses rose above average levels. The ownership of equity MFs vis-a-vis BSE-200 was at least 1 per cent higher in these sectors. While 15 equity MF schemes had a higher ownership in capital goods firms, 11 schemes over-owned healthcare scrips. April saw notable changes in sector and stock allocation of MFs. On a month-on-month (m-o-m) basis, the weight of automobile, consumer facing firms, IT, metals, healthcare and NBFCs (non-banking finance companies) increased, while those of public sector banks, oil & gas, private banks, capital goods and companies in the chemicals business moderated.
Click here to read more>>