As covid-led uncertainties are gradually receding, mutual fund houses are increasing their exposure to the banking sector, especially in the PSU segment. .
An analysis of India’s top 20 domestic mutual fund houses shows that they have been consistently pumping money into PSU banks for the last seven months.
In May, PSU Banks’ weightage among mutual funds reached a 15-month high of 3.4%, a jump of 30 basis points compared to the previous month and 120 bps in the year-ago period, according to data sourced from the Association of Mutual Funds in India (AMFI) and NAV India, analysed by Motilal Oswal Financial Services Ltd. As a result, the sector, which was in the thirteenth position a year ago climbed to the ninth position in the allocation of mutual funds