Mutual Fund Update: Which sectors are MFs betting on?

Which sectors are the mutual funds betting on? This is the question investors are grappling with after the markets turned volatile in last few months. So, let’s understand in past four months, which sector was preferred by mutual funds and which was not.

If we look at the net buying and selling activities by mutual funds in past four months, then it’s found that financials was the sector in which there was highest buying activity. Mutual funds’ net buying was around Rs. 2,191.91 crore in financials sector, followed by energy, FMCG and media & communications sectors with net buying of around Rs. 1,314.26 crore, Rs. 1,080.80 crore and Rs. 1,029.53 crore, respectively. On the other end, chemicals sector was the only sector to witness sell-off and net selling stood at Rs. 219.11 crore in past four years.

The intention of the above analysis is only for the purpose of understanding the activity of mutual funds and gauging the fund managers’ approach and in no means it is a recommendation to buy or sell. It is always advisable to have financial plan in place, which must be followed with discipline, and investment in mutual funds should be based on your individual risk assessment.