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Mutual funds slash IT sector exposure significantly from December 2024 peak
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Moneycontrol•20-10-2026, 08:10
Mutual funds slash IT sector exposure significantly from December 2024 peak
- •Mutual funds have sharply reduced their exposure to IT stocks since the Nifty IT index hit its all-time high on December 13, 2024.
- •Groww Multicap Fund and Samco Multi Cap Fund saw the most dramatic drops, with IT allocations falling into single digits.
- •Parag Parikh Flexi Cap Fund recorded the smallest reduction among top funds, dropping from 28.53 percent to 16.17 percent.
- •Motilal Oswal Midcap Fund currently leads with a 23.73 percent IT allocation as of September 2026 rankings.
- •A decline in sector allocation does not always mean active selling; underperformance, fresh inflows, and portfolio rebalancing also play a role.
Key Questions Answered
The sharpest change was seen in Groww Multicap Fund, where IT allocation plunged from 54.73 percent to 4.75 percent. Samco Multi Cap Fund also saw a major drop from 36.97 percent to 2.63 percent.
Parag Parikh Flexi Cap Fund stands apart by retaining the smallest reduction among those schemes, moving from 28.53 percent down to 16.17 percent, and continues to feature in the current top 10.
Not necessarily, because when IT stocks underperform, their relative weight can drop even without active selling, while fresh inflows and portfolio rebalancing also affect allocations.
