Fund mangers may trim exposure to PSU banks
According to mutual fund tracker Morningstar India, equity funds exposure to the sector in 2017 was highest at nearly 28 per cent and the trend is likely to continue this year as well. Combined with basic materials and consumer cyclical, rate-sensitive financial services has been a favourite among the Indian managers for a long time as these three account for more than 50 per cent of the portfolios of equity funds
Like last year, the equity portfolio managers would continue to position their portfolio to benefit from the turnaround in the Indian economy and low interest rate scenario. Image source: Reuters