The mutual fund (MF) industry raised its exposure to private banks to a 20-month high of 18.9 per cent in April 2025, according to a report by Motilal Oswal. This marked a 50 basis points (bp) month-on-month (MoM) increase and a 170bp rise year-on-year (YoY), making private banks the top sector holding for mutual funds during the month. The report stated, “Private Banks’ weight rose to a 20-month high in Apr'25 to 18.9 per cent (+50bp MoM; +170bp YoY).” The data signals increased investor confidence in the banking sector amid broader portfolio adjustments across various industries. MFs Increase Weights In Multiple Sectors According to the report, mutual funds increased their allocation to several sectors in April. Along with private banks, fund managers raised their exposure to Oil & Gas, Automobiles, Consumer, Telecom, Retail, Insurance, Chemicals, and Real Estate sectors. The report noted, “In Apr'25, MFs showed interest in Private Banks, Oil & Gas, Automobiles, Consumer, Telecom, Retail, Insurance, Chemicals, and Real Estate, leading to a MoM rise in their weights.” Oil & Gas, Automobiles See Continued Interest Oil & Gas recorded a second consecutive monthly increase in sector weight, rising to an eight-month high of 6.4 per cent in April, up 30bp MoM, though still down 40bp YoY. The Automobile sector reached 8 per cent weightage, reflecting sustained fund interest. Insurance, Textiles, Oil & Gas, Private Banks, and Chemicals posted the highest rise in value among all sectors on a MoM basis. Technology, Capital Goods Weights Decline While Private Banks led sectoral holdings, Technology remained the second-largest with a weightage of 8.3 per cent in April. However, it declined 20bp MoM, though it showed a 30bp increase YoY. Capital Goods saw a notable drop in allocation, falling to 6.9 per cent, a decrease of 30bp MoM and 100bp YoY. Other sectors like NBFCs, Utilities, Metals, and Cement also witnessed reduced weights in mutual fund portfolios. Healthcare maintained a stable position with a 7.6 per cent share in mutual fund holdings. The April data reflects a sectoral shift in mutual fund strategies, with a clear tilt towards banking, energy, and consumer-focused sectors. (With Inputs From ANI) Also Read: Indian Generic Drugmakers Unlikely To Face Impact From US Drug Pricing Order