The Indian mutual fund industry continued to see strong inflows into active equity mutual funds in the month of August. But as domestic market trades amid historically elevated valuations, fund managers revised their holdings incrementally towards stocks in the information and technology, as well as the healthcare space.
However, cash and cash equivalents saw the biggest rise in the month of August in terms of rise in holdings as a percentage of the total assets held, showed data provided by Ace Mutual Fund.
Cash and cash equivalents made up for 4.94% of the total holdings in active equity schemes, which was a rise of 0.46% against the month of July.
IT & Healthcare stocks saw the next biggest increments in allocation at 0.37% and 0.28%, respectively, against the month prior.
In terms of sectors that saw the biggest downgrade in allocation, banks took the top spot with a 0.45% reduction in holdings, even as they maintained their position as the sector with the largest allocation at 14.27%.
Stocks in the automobile & auto ancillaries segment saw the second biggest reduction at 0.31%, followed by those in the capital goods space, allocation in which fell by a quarter of a percent.
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