Banking And Financial Stocks Continue To Be Mutual Funds’ Preferred Bet

By shubhamagarwal

Posted on April 27, 2017

The stock market has shown lots of fluctuations in the present and past years. Due to certain ambiguities in the global market, the stock market had to face considerable setbacks. Despite this tight market situations, mutual funds continued to lead the market.

The growth results can be clearly seen from the percentage of equity held by Mutual funds. The number of equities possessed by Mutual funds rose by an overall 20 percent in previous 3-months’ time.

According to the latest statistics submitted by AMFI for the fiscal year ending March, Mutual funds held equities of $93.5 billion.

The news became more authentic when Bloomberg Quint also created a report detailing the equity held by the Mutual funds. In the year 2016, the equity held by Mutual funds was just Rs.5.09 lakh crore and with the 20% increase, the equity hold rose by Rs.98,120 lakh crore.

In the list of best Mutual fund Equities, Indian equities got the first position in the first three months of the running 2017.

Banking and financial stocks continued to be the Mutual Funds’ preferred Bet. Both of these sectors contained a large segment of the equities held by the mutual fund.

As per the latest reports, Mutual Funds invested in almost 43 sectors, out of which top 10 sectors occupied 70% or more of the total money invested in equities. Under Top 10 sectors included, Assets under management (AUM) and cash inflows. Both of these sectors together increased the investment in the last quarter of the fiscal year 2017.

• The last 10 sectors of total 43 sectors made only 1% more than the AUM.
• Of other sectors, retail sector showed commendable performance and proved out to be the best source for optimum ROI.
• AUM occupied 1.7% of the total pie chart created by Bloomberg Quint to create exposure of equities to Mutual funds.
• The Derivate shares also rose by almost 60%.
• The most sufferer was the software Industry.
• Pharmaceutical and automobile sector attained first three positions.

Wrapping Up

With this detailed report, we can conclude that Banking and finance stocks continued to be mutual funds’ preferred bet.

Banking And Financial Stocks Continue To Be Mutual Funds’ Preferred Bet