Mutual Funds reduce exposure to banking stocks by over 2% in May - Indian Express

PTI : New Delhi, Thu Jul 04 2013, 16:14 hrs Mutual funds reduced their holdings in banking stocks by 2.4% in May compared to that in previous month. (Reuters) Mutual funds reduced their holdings in banking stocks by 2.4% in May compared to that in the previous month. The investment in banking stocks was 20.1 per cent of mutual funds' (MF) total equity assets under management (AUM) of Rs 1.87 lakh crore in May, according to Sebi data. * Best Performing Mutual Funds Mutual funds' investment in banking shares was at Rs 38,572.41 crore at April-end, which was 20.84 per cent of the industry's total AUM. This marks a steep decline from Rs 43,659 crore parked in banking shares in December 2012. In terms of percentage too, MF exposure to banks had fallen from its peak level of 21.40 per cent seen at the end of January. STOCK MARKET LINKS * BSE Sensex * NSE Nifty Market participants attributed the decline in investment in banking shares to overall volatility in equity market. Banking is the only sector to log double digit exposure. Software is the second most preferred sector with MFs having 9.39 per cent exposure, followed by consumer non-durables (7.53 per cent) and pharmaceuticals (7.48 per cent). Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. In 2012, there was a consistent growth in investment in banking stocks by the industry's equity fund managers and their exposure has risen from 17.23 per cent of total AUM in January 2012 to 21.15 per cent in December. In absolute terms, fund infusion has grown from Rs 32,380 crore to Rs 43,659 crore. The increase in allocation by fund managers to the banking sector could be attributed to interest rates declined during the year. ... contd. ALSO READ LG aims 10% smartphone market share, to invest Rs 80 cr by 2014 Indian rupee turns lower, RBI chief D Subbarao says no FX target Direct taxes code bill to be introduced during monsoon session: Finance Minister Indian rupee seen rising 4% in 12 months: poll Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNH95JNE-I8JMUeQb81ymEwvQOs88Q&url=http://www.indianexpress.com/news/mutual-funds-reduce-exposure-to-banking-stocks-by-over-2--in-may/1137653/

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