Private banks emerged as a favourite destination for fund managers last month, reported LiveMint. The large scale investment came a month after investments hit a 22-month low in July and amid concerns about defaults and end of the moratorium period, the report said.

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According to data from Association of Mutual Funds in India (Amfi) and NAV India, the weightage of private banks in mutual fund schemes was up by 110 basis points (bps) from 16.2 percent in July to 17.3 percent in August, the report added.

Other sectors to attract heavy investments from mutual fund firms included technology (10.2 percent), oil and gas (9.1 percent) and consumer (8.8 percent) sectors.

Several factors such as declining interest towards the oil and gas sector, fundraising spree of private lenders may also have played a crucial role in the new trend, the report said. As per the report, private banks were on a fundraising spree with ICICI Bank Ltd, Axis Bank Ltd and HDFC Ltd raising around Rs 35,000 crores in August.

First Published:Sept 16, 2020 3:15 PM IST