Mutual funds cut IT exposure to all-time low of 5.9% in June. Contrarian opportunity or signal for caution?

Mutual funds have reduced their technology sector allocation to 5.9 per cent. This marks an all-time low, reflecting investor caution and profit booking. Experts suggest this decline may present a long-term buying opportunity for investors. However, near-term volatility is expected due to global spending concerns. Diversified equity funds are recommended over concentrated sector bets.