Where are mutual funds placing their bets? A look at June’s sectoral trends

In June, mutual funds showed interest in Private Banks, Healthcare, NBFC - Lending, Automobiles, Retail, E-Commerce, Real Estate, Consumer Durables, and Logistics, leading to a month-on-month increase in their weights, according to a report by Motilal Oswal Financial Services.

Sectors such as Technology, Oil & Gas, Utilities, Metals, Consumer, Telecom, Insurance, NBFC - Non Lending, and Cement saw a month on month moderation in weights.

Private banks had the highest weightage of around 17.9% in June. The weight in this sector changed from 17.3% on a monthly basis.

The other sectors that gained mutual funds interest were Automobiles (8.6%), Capital Goods (8.1%), Healthcare (8%) and Technology (5.9%).

Around 19 sectors saw an increase in value on a monthly basis. The top five sectors that saw the maximum increase were - Textiles, logistics, hotels, retail and e-commerce whereas the sectors that saw the decline were technology, oil & gas, utilities, metals, insurance, NBFC - non lending, and media.

The top sectors where mutual fund ownership vis-à-vis the BSE 200 was at least 1% lower were Oil & Gas (20 funds under-owned), Private Banks (15 funds under owned), Consumer (14 funds under-owned), PSU Banks (13 funds under-owned), and Utilities (12 funds under-owned).

The top sectors where mutual fund ownership vis-à-vis the BSE 200 is at least 1% higher were NBFC –Non Lending (15 funds over-owned), Healthcare (14 funds over-owned), Capital Goods (9 funds over-owned), E-Commerce (9 funds over-owned), and Chemicals (9 funds over-owned).