MF investment in IT stocks at record high in February

Mutual funds, betting big on software companies, boosted their exposure to sector’s stocks to a new high of Rs 28,784 crore in February.

At the end of last month, mutual fund investments in software stocks accounted for 15.2 per cent of their total equity assets under management of Rs 1.89 lakh crore, according to data from Securities & Exchange Board of India.

In January, the investment of mutual funds in software companies was at a record level of Rs 27,772 crore.

A mutual fund is a vehicle made up of a pool of funds collected from investors that buys and sells securities such as stocks, bonds and money market instruments.

Market participants attributed the continued preference of mutual funds for the software segment to weakness in the rupee, revival of demand in key markets like the US.