Check Free CIBIL Score Online

Five Best Banking Funds to Invest in

Highlights

  • Banking funds have performed well over the last three months, while their long-term performance does not inspire much confidence
  • Even if you want to invest in these funds, which are the ones you could consider? Read this post to know the same

Banking funds are open-ended equity funds that invest in banking stocks. These are a kind of sector funds that invest only in the banking sector and not in any other sector. To know more about different types of sector funds, you can read another post of ours- https://www.wishfin.com/mutual-fund/sector-funds-are-these-a-good-investment/

Top Mutual Funds to Invest in Now

Best Banking Funds to Invest in

Aditya Birla Sun Life Banking and Financial Services Fund

This fund is offered by Aditya Birla Sun Life Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 14th Dec 2013 and has delivered annualized returns of 12.59%.
  • The current AUM of the fund is INR 1,234 crores.
  • It is rated three stars by Value Research.
  • The current portfolio comprises 23 stocks.
  • The portfolio allocation is 86% in large-cap stocks and 14% in mid and small-cap stocks.

Invesco India Financial Services Fund

This fund is offered by Invesco Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 14th July 2008 and has delivered annualized returns of 13.89%.
  • The current AUM of the fund is INR 166 crores.
  • It is rated four stars by Value Research.
  • The current portfolio comprises 18 stocks.
  • The portfolio allocation is 90% in large-cap stocks and 10% in mid and small-cap stocks.
People Also Look For  Axis Bluechip Fund - Performance, Portfolio & Much More

SBI Banking and Financial Services Fund

This fund is offered by SBI Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 26th Feb 2015 and has delivered annualized returns of 7.85%
  • The current AUM of the fund is INR 1,213 crores.
  • It is rated five stars by Value Research.
  • The current portfolio comprises 19 stocks.
  • The portfolio allocation is 82% in large-cap stocks and 18% in mid and small-cap stocks.

Tata Banking and Financial Services Fund

This fund is offered by Tata Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 28th Dec 2015 and has delivered annualized returns of 11.38%.
  • The current AUM of the fund is INR 388 crores.
  • It is rated four stars by Value Research.
  • The current portfolio comprises 16 stocks.
  • The portfolio allocation is 89% in large-cap stocks and 11% in mid and small-cap stocks.

Sundaram Financial Services Opportunities Fund

This fund is offered by Sundaram Mutual Fund. These are the features and key points about this fund:

  • This fund was launched on 10th June 2008 and has delivered annualized returns of 11.03%.
  • The current AUM of the fund is INR 181 crores.
  • It is rated three stars by Value Research.
  • The current portfolio comprises 20 stocks.
  • The portfolio allocation is 86% in large-cap stocks and 14% in mid and small-cap stocks.

Returns of Banking Funds

These are the returns delivered by these funds in % terms (regular plan):

As we can see these banking funds have performed well in the last three months with 10% + returns. However, the last three years have not been good for banking funds since banks have been plagued with several issues. This poses a dilemma whether one should invest or not in these funds since short term performance is good while the long term is not so good. To know more about these funds, advantages and disadvantages and whether you should invest in them or not, you can read another post of ours- https://www.wishfin.com/mutual-fund/banking-funds-definition-advantages-disadvantages/