MFs Rebalance New-Age IT Portfolios Ahead of Q3 Result Season
As the third quarter result season approaches, mutual fund managers are strategically reshuffling their portfolios, particularly within the new-age and IT sectors. This realignment aims to optimize returns and seize growth opportunities in a fluctuating market.
Key Changes in IT Allocations
– Tata Consultancy Services (TCS): Fund managers increased their investments in TCS, highlighting its resilience and strong performance potential.
– Infosys: In contrast, exposure to Infosys was reduced as concerns over its growth trajectory persisted.
– InterGlobe Aviation: Notably, fund managers shifted their allocations toward InterGlobe Aviation, the parent company of IndiGo. This move follows a significant selloff prompted by extensive flight cancellations affecting the airline.
Investment in New-Age Businesses
In addition to traditional IT stocks, mutual fund managers are I actively investing in new-age businesses:
– Online Food Delivery Platforms: Recent investments were directed towards Swiggy and Zomato, both of which have experienced a decline in share prices since October. The timing suggests a belief in their potential rebound as market conditions evolve.
Summary of the Current Landscape
Mutual fund managers are strategically rebalancing their portfolios in anticipation of Q3 results. By enhancing their stakes in TCS and reallocating funds to include promising new-age businesses like Swiggy and Zomato, they aim to capitalize on market opportunities. As they navigate this dynamic environment, the focus remains on delivering optimal returns while mitigating risks inherent in the IT and aviation sectors.
With the ongoing adjustments, investors will be keenly watching these sectors as they prepare for what lies ahead in the upcoming results season.