Mutual fund managers’ exposure to the software sector has dropped to ₹24,315 crore in March, after touching a record high in the preceding month, primarily on account of investors’ concerns over the impact of the appreciating rupee on exporters.

According to latest data available with market regulator Securities and Exchange Board of India (SEBI), investment by the mutual fund industry in software stocks stood at ₹24,315 crore as on March 31, accounting for 11.92 per cent of their total equity assets under management (AUM) of ₹2.04 lakh crore.

In comparison, the fund managers’ exposure to software stocks was at an all-time high of ₹28,784 crore in February.

However, investment growth in software stocks by the industry’s equity fund managers has risen from ₹19,196 crore in March 2013 to ₹24,315 crore in the corresponding month this year.

A mutual fund is a vehicle made up of a pool of funds collected from investors that buys and sells securities such as stocks, bonds and money market instruments.

Market participants attributed the decline in investment in IT shares by mutual fund managers to the appreciating rupee and expensive valuations.

While some experts said that the rising Indian currency is a cause for concern, they are comfortable with the currency hovering around 60 levels.

During the month of March, IT stocks under-performed the broader market by falling over 10 per cent, while the BSE’s benchmark Sensex rose by nearly 6 per cent.

In March this year, mutual funds had investments of ₹40,293 crore in banking stocks, which was the highest among all sectors.

Besides, pharma stocks accounted for ₹16,066 crore, while consumer non-durables attracted ₹12,947 crore and petroleum products at ₹10,909 crore.

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