Investments by mutual fund (MF) houses in information technology (IT) shares surged 55 per cent to Rs 36,000 crore at the end of May, compared with Rs 22,986 crore in May last year.
According to experts, equity fund managers raised their bet on banking, software, automobiles, pharmaceuticals stocks last month, as these sectors have given smart return to investors.
MF is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.
According to data available with the Securities and Exchange Board of India (Sebi), the overall deployment of equity funds in IT stocks stood at Rs 35,750 crore in May compared with Rs 34,100 crore in the previous month. Besides, exposure to IT stocks was at 9.45 per cent of equity AUM in May as against 9.43 per cent in the preceding month. The benchmark BSE Sensex witnessed a rise of 3 per cent last month, while the IT index rose five per cent during the period under review.
IT was the second-most preferred sector with fund managers after banks, with an exposure of Rs 79,215 crore.
Besides, pharma witnessed a deployment of Rs 29,246 crore, followed by auto (Rs 26,215 crore) and finance (Rs 22,925 crore).
 "Mutual funds exposure to IT stocks surges to Rs 36,000 cr")
