Best Banking Sector Mutual Funds to invest in 2019 India

Top and Best Banking Sector Mutual Funds to invest in 2019 IndiaBest Banking Sector Mutual Funds to invest in 2019 India


Modi 2.0 wave started now. What ever planning done by Modi’s Govt in the last 3-5 years would start yielding results in their next term of 1-5 years. Many experts believe that Banking and Infrastructure would be the best sector to invest in 2019 in Modi 2.0 wave. Banking and financial services sector has been rocking in the last 2-5 years. This sector expected to continue to excite investors. Which are the Best Banking Sector Mutual Funds to invest in 2019 in India? Which are the Top Banking Sector Mutual Funds that are expected to perform well in the next 2-3 years.

Also Read: Best Aggressive SIP Mutual Funds to invest from Balanced category

What are Banking Sector Mutual Funds?


If you are already aware, skip this section.

As the name indicate, Banking sector mutual funds invests in banking and financial services companies in India. Banking sector has always been ever green in the last 10-15 years and it continues to excite investors who invested either in banking and financial services stocks or mutual funds.

Why to invest in Banking Sector Mutual Funds now in India?


India expected to growth at high pace with Infrastructure development. Modi Government focus was on Infrastructure growth in the last 3-5 years. However such infra growth was going at slow pace compared to what is expected. To fund infra sector, banking and financial sector is going to play key role. Modi 2.0 would focus on reforms where Infra and banking sector are expected to grow at higher pace in India now.

How we filtered good banking sector mutual funds to invest now?


1) Banking sector funds that gave highest returns in the last 10 years, 5 years and 3 years are considered. This would help us to know how these performed in various market cycles.

2) Banking sector funds that has good star rating from Value Research

3) Funds that has low beta is considered. This means that such fund would fall at lower pace compared to stock market correction.

4) In certain cases, we have considered Alpha. This means that how far fund would give higher returns compared to benchmark. Since it is sector fund, we felt, its alpha could be misleading or can give incorrect information, hence considered only in some cases.

Who can invest in Banking Sector Mutual Funds?


These funds invests in banking and financial services sector i.e. only in one sector. Hence such funds are very high risk. If you are high risk investor and willing to invest for 3-5 years time frame, you can invest part of your portfolio in such mutual funds. Low risk investors and investors who want to invest for long term should stay away from such funds.

Best Banking Sector Mutual Funds to invest in 2019 India


Let us quickly jump into some of the good banking sector mutual funds that one can invest in India.

#1 – ICICI Prudential Banking and Financial Services Fund


Strategy of the Fund

The MF scheme seeks to maximize long term capital gains by investing in equity and equity related securities of banking, financial and non-banking financial companies that form a part of Banking and Financial Services Industry. A large share of the assets of the scheme will be invested in the stocks comprising the benchmark, BSE Bankex Index.

Fund Performance

This fund gave 20% annualized returns in the last 10 years, 19% annualized returns in the last 5 years and 23% annualized returns in the last 3 years.

This fund  is running on Modi 2.0 Wave and gave 18% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 1. This means its volatility would be inline with benchmark.

Its Alpha is 1.97. It means that this would be able to generate 1.97% higher returns compared to its benchmark.

Why to invest in this fund?

This fund is consistent performer and gave 20% annualized returns in the last 10 years. Value Research rates this fund as 5 Star. This fund has high alpha and can give higher returns compared to its benchmark. This is one of the Best Banking Sector Mutual Funds to invest in 2019 in India.

#2 – Reliance Banking Fund


Strategy of the Fund

The mutual fund scheme aims to generate continuous returns by actively investing in equity, equity related or fixed income securities of banks. The proportion of investment between equity and debt will be decided based on the view of the fund manager on anticipated movement in both debt as well as equity markets.

Fund Performance

This fund gave 17% annualized returns in the last 10 years, 16% annualized returns in the last 5 years and 20% annualized returns in the last 3 years.

This fund  is running on Modi 2.0 Wave and gave 19% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 0.96. This means its volatility would be inline with benchmark.

Its Alpha is -0.89. It means that this would generate 0.89% lower returns compared to its benchmark.

Why to invest in this fund?

This fund is consistent performer and gave 17% annualized returns in the last 10 years. Value Research rates this fund as 3 Star. Though this fund has 0.89% negative alpha, its low beta would provide cushion in volatile markets. This is one of the Best Mutual Funds to invest in India from Banking Sector.

#3 – Invesco India Financial Services Fund


Strategy of the Fund

The fund seeks to generate capital appreciation from a portfolio of Equity and Equity Related Instruments of companies engaged in the business of banking and financial services.

Fund Performance

This fund gave 17% annualized returns in the last 10 years, 17% annualized returns in the last 5 years and 20% annualized returns in the last 3 years.

This fund  is running on Modi 2.0 Wave and gave 17% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 0.88. This means its volatility would be inline with benchmark.

Its Alpha is 0.66. It means that this would be able to generate 0.66% higher returns compared to its benchmark.

Why to invest in this fund?

This fund is consistent performer and gave 17% annualized returns in the last 10 years. Value Research rates this fund as 4 Star. This fund has moderate alpha, however has low beta which could give cusion during volatile markets. This is one of the Good Banking Sector Mutual Funds to invest in 2019.

#4 – Aditya Birla Sun Life Banking & Financial Services Fund


Strategy of the Fund

The scheme aims to maximize long term capital appreciation by investing primarily in equity & equity related securities of companies engaged in banking & financial services. The scheme would invest in banks as well as NBFC’s, insurance companies, rating agencies, broking companies, etc.

Fund Performance

This fund gave 18% annualized returns in the last 5 years and 19% annualized returns in the last 3 years.

This fund  is running on Modi 2.0 Wave and gave 18% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 1.07. This means its volatility would be inline with benchmark.

Its Alpha is -1.72. It means that this would be able to generate 1.7% negative returns compared to its benchmark.

Why to invest in this fund?

This fund is consistent performer and gave 23% annualized returns since inception of 6 years. Value Research rates this fund as 4 Star. This is one of the Good Banking Sector Mutual Funds to invest now in 2019.

#5 – UTI Banking and Financial Services Fund


Strategy of the Fund

The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies/institutions engaged in the banking and financial services activities.

Fund Performance

This fund gave 15% annualized returns in the last 10 years, 13% annualized returns in the last 5 years and 16% annualized returns in the last 3 years.

This fund  is running on Modi 2.0 Wave and gave 16% returns in the last 3 months.

Key Ratios of the Fund

Its beta is 1.01. This means its volatility would be inline with benchmark.

Its Alpha is -3.52. It means that this would be able to generate 3.5% negative returns compared to its benchmark.

Why to invest in this fund?

This fund is consistent performer and gave 17% annualized returns since inception of 15 years. Value Research rates this fund as 3 Star. This is one of the Best Mutual Funds to invest in Banking Sector now in 2019.

Also Read: Best SBI Mutual Funds to invest in India

Summary of Top 5 Banking Sector Mutual Funds to invest now in 2019


List of Best Banking Sector Mutual Funds to invest in 2019 India

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Suresh KP

Your Friend in investment advice

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