Debt funds\\\' exposure to G-Sec hits 11-month high

MUMBAI, Dec 12 (Business Standard): Government Securities or G-Sec have emerged as the top bet for India's fixed income fund managers in recent months.

As cuts in interest rate look imminent early next year, they have taken nearly a 10-per cent exposure in government papers in November - an eleven months high. In absolute terms, Rs 778.70 billion of the total debt asset under management (AUM) of Rs 7.89 trillion have found its way into G-Sec.

This is the highest since December last year when fund managers had taken up their exposure to G-Sec to above 11 per cent in hopes of rate cuts. However, as those hopes stood dashed out, they were fast in pruning their investment and brought it down to 6.24 per cent in March this year.