Mutual funds: 7 best performing banking & financial services funds

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₹42,700 crore investment solely to financial stocks during the initial two weeks of December. Data from the National Securities Depository Limited (NSDL) website discloses that, as of December 15, 2023, the assets under custody (AUC) amounted to ₹19,41,167 crores. With investments at such elevated levels, the keen interest of FIIs in this sector becomes evident, indicating the growth potential.

Not all investors engage in stock markets solely for monetary gains; some opt for mutual funds, relying on the expertise of seasoned fund managers. Numerous mutual fund houses have introduced banking and financial services funds to leverage opportunities within the thematic category. While skeptics may dismiss the notion of investing in thematic funds, those willing to hold their investments for an extended period, such as a decade or more, stand to benefit from the periodic upswings in various sectors, including this one.

Furthermore, recent government regulations governing the digital operations of this sector suggest a probable upsurge in the near future. Banking and financial services funds have demonstrated satisfactory performance in the previous years. Prospective investors considering their inclusion in their investment portfolios can assess their 10-year historical returns to gauge past performance.