New Delhi: Continuing with the bullish stance on software stocks, mutual fund managers raised their exposure in the sector to a historic high of over Rs 35,000 crore in January this year.
In comparison, investment in software stocks was at Rs 27,772 crore in January 2014.
MFs collect funds from various investors for investing in securities such as stocks, bonds, money market instruments and similar assets.
Their investments in software stocks stood at Rs 35,463 crore as on January 31, 2014, accounting for 9.97 percent of their total equity assets under management (AUM) of Rs 3.55 lakh crore, according to data available with the Securities and Exchange Board of India (Sebi).
The previous high was in November last year when investment in the sector stood at Rs 34,674 crore.
"We have a positive view on the IT or software sector... this sector is amongst the most attractive," HSBC Global Asset Management India CEO Puneet Chaddha said.
"Listed Indian software companies are showing strong traction in revenue growth and are gaining market share from their US competitors due to their efficiency gain and cost optimisation initiatives.
"Finally, the valuation of Indian software companies looks relatively cheaper as compared to their high level of profitability," he added.
Software was the second most preferred sector, after banking, with an exposure of Rs 76,000 crore.
Besides, pharmaceuticals have an exposure of Rs 24,366 crore, auto (23,178 crore) and finance (Rs 21,993 crore).
