Energy sector’s weight in MF portfolios at record level, thanks to rally in RIL shares
The oil and gas sector’s weight in the domestic mutual funds reached a record high in June 2020 following the rising value of their holdings in Reliance Industries (RIL NSE 0.17 %) and Bharat Petroleum (BPCL NSE 6.19 %). This is contrary to the global trend where the sector’s weight has shrunk to a multi-year low.
The sector’s weight in the domestic funds’ portfolio increased by 220 basis points year-on-year to 9.4% in June 2020, according to the data compiled by Motilal Oswal Financial Services. It was 7.3% at the beginning of the year.
The allocation to the energy sector is the third largest for the domestic funds after the private banks (17.1%) and consumer (9.6%) sector. The value of the energy sector holdings of the mutual funds grew by 25% year-on-year to Rs 98,440 crore in June 2020, the data from Accord Fintech show.
