With mutual funds reducing their weight or allocation in private banks for a second consecutive month in April, market experts believe that this drop is tactical rotation and not a structural shift and also appears to be driven more by near term earnings and margin concerns rather than fears around asset quality deterioration.
Vishal Dhawan, Founder & CEO, Plan Ahead Wealth Advisors told ETMutualFunds that this drop reflects tactical rotation, and not a structural shift indicating a tactical sector rotation in our view, fund managers are taking profits out of heavily owned private banks to chase certain sectors with better return prospects and relatively better insulated from FPI outflows that have been significant this year.
