Banking and financial services mutual funds are sector-specific equity schemes that primarily invest in companies engaged in the financial ecosystem. These may include banks, NBFCs, insurance firms, housing finance institutions, stock exchanges, and capital market intermediaries.
Unlike diversified equity funds, these sectoral funds focus on a particular industry, which may result in higher volatility but also the potential for impressive returns when the sector performs well.
The following mutual fund schemes from the banking and financial services category have reported double-digit returns over the past month:
Funds | AUM( ₹ in Crore ) | Expense Ratio (%) | Benchmark Index | NAV in ₹ | Returns March 15 to April 16 in % |
Tata Banking & Financial Services Fund | 2548.5 | 1.96 | Nifty Financial Services – TRI | 40.72 | 11.29 |
HDFC Banking & Financial Services Fund | 3722.4 | 1.92 | Nifty Financial Services – TRI | 15.9 | 10.99 |
Invesco India Financial Services Fund | 1208.2 | 2.17 | Nifty Financial Services – TRI | 126.77 | 10.76 |
Sundaram Fin Serv Opp Fund | 1415.2 | 2.15 | Nifty Financial Services – TRI | 99.26 | 10.72 |
Aditya Birla SL Banking & Financial Services Fund | 3248.5 | 2.01 | Nifty Financial Services – TRI | 57.31 | 10.53 |
While these funds have delivered impressive short-term returns, it is important to remember that sector-specific funds carry unique risks tied to the performance of that industry. The banking and financial services sector, being integral to the economy, often experiences cyclical highs and lows. Tracking their performance helps understand broader market sentiment and financial health trends.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 17, 2025, 2:53 PM IST
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