2 weeks ago

Mutual Funds Cut Consumer Exposure, Favor Five Other Sectors

Mutual funds are pools of money invested in many companies.

In August, fund managers reduced how much of this money was invested in consumer companies.

They increased investments in healthcare, capital goods, e-commerce, insurance and some financial businesses instead.

Healthcare became one of their largest favored sectors, reaching 8.4% of portfolios.

E-commerce reached its highest allocation ever at 3.3%.

This does not mean fund managers are leaving the stock market.

Instead, they are moving money toward sectors they believe may have stronger growth or clearer earnings.

Overall mutual fund investments rose in August because more money came in and fewer investors withdrew money.

Key facts

Consumer exposure: Declined to a 10-year low.
Healthcare allocation: 8.4% in August, up 30 basis points month-on-month and 80 basis points year-on-year.
Capital goods allocation: 7.9%, up 30 basis points month-on-month and 80 basis points year-on-year.
E-commerce allocation: 3.3%, an all-time high after rising for the fourth consecutive month.
NBFC–Non-Lending: Over-owned relative to the BSE 200 by 16 funds, the highest figure among the highlighted sectors.
Equity mutual fund inflows: ₹31,700 crore in August, compared with ₹26,200 crore in July.

businesstoday.in · 2 weeks ago