Mumbai: According to the latest data available with market regulator Securities and Exchange Board of India (SEBI), ‘Mutual Fund (MF) investments in banking stocks reached Rs. 40,293 crore as on March 31, 2014.’ This is inclusive of 19.76 per cent of total equity assets under management (AUM) of Rs. 2.04 lakh crore.
Being the second consecutive monthly rise in exposure, this can also be considered as the highest level since January 2013, when fund managers had shored up their investment in banking shares to Rs. 42,760 crore.
Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. MFs invest in stocks, bonds, money market instruments and similar assets.The investment in the sector rose up to a record high of Rs. 43,659 crore in December 2012.
According to market participants, MFs have shown interest in banking stocks since September last year primarily on account of measures announced by Reserve Bank Governor Raghuram Rajan coupled with overall surge in the stock market.
Meanwhile, the banking index surged by 18.6 per cent in March 2014, while the 30-scrip BSE sensitive index Sensex shot up by 6 per cent. Banking was also followed by software sector, where MF investments stood at Rs. 24,315 crore. Pharma stocks accounted for Rs. 16,066 crore, while consumer non-durables attracted Rs. 12,947 crore and petroleum products at Rs. 10,909 crore.
