Mutual Funds Allocate More to IT and Healthcare Sectors in August 2024
Strategic Shifts in Mutual Fund Allocations
The Indian mutual fund industry continues to experience significant inflows into active equity mutual funds in August 2024. However, as the domestic market navigates historically elevated valuations, fund managers have made strategic adjustments by increasing their exposure to the information technology sector and the healthcare sector.
Key Changes in Asset Allocation
- Cash and Cash Equivalents: These saw the largest rise in holdings, comprising 4.94% of total assets, a 0.46% increase from July.
- IT Sector Allocation: Fund managers increased exposure to IT stocks, with a 0.37% uptick.
- Healthcare Sector Allocation: The healthcare segment witnessed a 0.28% rise in allocation.
Sector-Wise Observations
In contrast, certain sectors have faced reductions:
- Banks: Experienced the largest downgrades with a 0.45% reduction, despite holding the largest allocation overall at 14.27%.
- Automobile Sector: A 0.31% decline in holdings.
- Capital Goods: Allocation decreased by 0.25%.
These shifts reflect evolving dynamics within the Indian mutual fund sector, showcasing a strategic repositioning amidst broader market trends. For more detailed insights, consider visiting the source.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.