Mutual funds lift IT bets in October as exposure rebounds
Mutual funds lift IT bets in October as exposure rebounds
IT stocks regain investor appeal as October mutual funds lift tech bets, pushing IT exposure higher after a multi-year lull.
Mutual funds lifted their bets on information technology stocks in October, reversing a multi-year lull as technology names regained investor interest. IT sector exposure rose to about 7.6% of equity allocations, a marked step up from earlier lows. Several fund houses now hold 8.4% or more in IT stocks, with Mirae Asset schemes leading recent performance charts. The broader tilt reflects renewed confidence in India's tech ecosystem and the potential for digital services to drive earnings across sectors.
A closer look at allocations reveals a tilt toward technology, NBFCs, PSU banks and telecom, while weights in autos, utilities and cement eased. This rotation mirrors an evolving market mood, where fund managers are actively re-weighting holdings to reflect early signs of earnings growth and the resilience of tech-driven demand.
For investors, October's repositioning signals that technology exposure may be entering a more sustainable growth phase, even as macro uncertainties linger. It also underscores the evolving approach to active management, where fund houses recalibrate portfolio weights to align with sector catalysts and rising demand for IT services.
If these trends persist, IT allocations could remain a meaningful contributor to fund performance in the coming quarters, potentially supporting the broader digital adoption story and the earnings momentum of technology names.
Cover image source: Top 10 mutual funds by assets under management in October. Parag Parikh Flexi Cap Fund stands first đź”—
