Domestic mutual funds are too kind on banking stocks and the exposure of mutual funds has reached the high level in the shares of banking sector. Sources said that in the upcoming days the investment of mutual fund has increased due to the expectation of good result from the shares of banking stock.
According to the records of Capital market regulator SEBI, the exposure of mutual fund in banking sector was at the level of Rs.42, 022 in the month of November. It is 20.59% of total equity exposure of mutual funds. In the end of November 2012, the exposure of mutual fund in equity was at the level of Rs.2.04 lakh crore and in August 2009, it was Rs.22,587 crore. But this year in October month the exposure was Rs.38, 668 crore.
Only the banking sector has double unit exposure of mutual funds, the software sector is in on the second position which is at the level of 8.7%. The third position has taken by the non durables where the investment of mutual fund is at the level of Rs.16, 387 crore.