The economic uncertainty and the state of individual finances has impacted investments. Several retail investors say they are in no position to consider fresh investments at this time.
This was the lowest level of deployment since June, when equity funds' exposure to bank stocks stood at Rs 1.87 lakh crore. In May, it was at Rs 1.89 lakh crore.
"Sentiments may get impacted as mutual funds have been gaining traction among investors as route to invest in stock markets," HDFC AMC chairman Deepak Parkeh said