Investing.com — In a recent report, Bank of America revealed the top 10 stocks most widely held by funds around the world, highlighting their dominance in investment portfolios.

The list is led by Taiwan Semiconductor Manufacturing Company (TSMC), which holds 95% of related funds. Microsoft (NASDAQ:) and ARMS Holdings ADR (NASDAQ: ) shares second place, with 88% of funds holding these stocks.

Samsung Electronics (KS: ) follows with 83%, while India’s HDFC Bank Limited (NYSE: ) and China’s Tencent Holdings Ltd (HK: ) each appear in 79% of portfolios.

Rounding out the list are Amazon (NASDAQ:), NVIDIA (NASDAQ:), and ASML (AS:), each holding 77% of the funds, and Japan’s Keyence (TYO:) with a 76% holding rate.

The list shows that the technology sector continues to dominate global investment portfolios.

In 2024, long-only funds significantly increased active exposure to equities, adding $40 billion relative to benchmarks. However, fund managers face difficulties, as overweight positions are under-performed in most regions except the US, where overweight positions exceeded by a slight 0.2%.

Sector-wise, US industrials saw the biggest increase in active equity exposure, BofA said, citing its analysis of 8,400 long-term funds.

US funds also added exposure to “but struggled to increase active exposure to the largest Tech stocks given the heavy index weighting of these stocks,” the bank’s strategists led Nigel Tupper said in the note.

Conversely, in Asia and Emerging Markets, funds have reduced their active exposure to Financials while increasing their allocations to Tech.

Looking ahead to 2025, BofA’s Triple Momentum analysis indicates a favorable outlook for both Financials and Tech, suggesting that these sectors may present compelling opportunities. for more active exposure.

In a separate January Fund Manager Survey (FMS), BofA highlighted strong investor sentiment toward the US dollar and equities, while signaling bearish views in most other asset classes.

The survey showed that cash allocations fell to 3.9%, their lowest point since June 2021. This decline triggered the second consecutive “sell” signal under BofA’s Cash Rule, a standard of historically linked to weaker equity performance in the following months.

A net 41% of fund managers reported being overweight equities, although this represented a decline from the three-year peak of 49% recorded in December.

BofA pointed to a “large equity rotation in January from US stocks to Europe,” as exposure to US equities fell sharply from a net 36% overweight to 19% At the same time, Eurozone stocks moved from a net 22% underweight to a 1% overweight, representing the largest monthly increase in exposure to the Eurozone in 25 years.

The survey also revealed bearish sentiment in other asset classes. Commodities are underweight 6% of managers, while 11% are underweight cash, and 20% are underweight bonds.