Banking sector mutual funds outshine markets over the past one month
Mutual funds are the most sought after investment routes to enter the markets and grow your money. However, which mutual fund to invest in is also a question that must be pondered upon.
The NSE Nifty and BSE Sensex have risen 4.71% and 3.57% in July 2017. It is the banking and financial services sector that has seen buying over the past few months. This also marks the sixth consecutive monthly rise in the mutual funds' exposure to bank stocks. In comparison, the figure was Rs 93,885 crore at the end of June 2016. Banking continues to be the most preferred sector with the fund managers, given the high weightage attached to the index.
SMC Research, in a note on August 8, 2017 said, "Mutual fund managers continued to be bullish on bank shares, as their allocation to the sector reached an all time-high of Rs 1.47 lakh crore at the end of June, mainly due to cheaper valuations."
According to SMC Research, Birla Sun Life Banking and Finance Services has given returns of 8.80% over the past given month while SBI Banking and Financial Services mutual fund is up 7.31%.
UTI Banking Fund is at 6.44% gain while ICICI Prudential Banking and Financial Services mutual fund is up 7.36%.
Pic: SMC Research