Time To Invest In Banking Fund?

Banking sector is a backbone of any economy.Indian banks have shown strength at the time of subprime problems as well when european central banks are in trouble.After increase in succesive interest rates by RBI banking stocks have come down reasonabally lower levels and chances are  that interest rate may not be as usual ahead.If we take a view of banking stocks from their recent highs,then we find that most of the stocks have corrected nearly 25-30%. and Some of the representatives are as follows:

 

1.SBI   corrected nearly 33% from peak of 3385 made in November 2010.

2.ICICI bank has corrected nearly 25% from peak of 1245 made in November 2010.

3.Bank of India has corrected nearly 35% from recent peak of 560.

4.IDBI bank have corrected nearly 40% from a peak of 198.

 

Banking Funds for which we may think of:

1.Reliance Banking Fund:This may be the oldest fund in this cateogary launched in 2003.Current top 5 holdings of this fund are as follows:

1.ICICI bank.

2.SBI.

3.Bank Of baroda.

4.HDFC bank.

5. Bajaj financial services.

2. ICICI-Pru Banking And Financial Services: This fund was launched in 2008 and current top 5 holdings are as follows:

1.ICICI bank.

2.Axis Bank.

3. SBI.

4.Bank Of Baroda.

5.HDFC Bank.

3.Religare Banking Fund: This fund was launched in 2008 and top 5 holdings are as follws:

1.ICICI bank.

2.SBI.

3.HDFC bank.

4.Bank of Baroda.

5.Punjab National Bank.

4. Sundaram Financial services opportunities: This fund was launched in 2008 and have provided returns 0f more than 20% CAGR since launch. Top 5 holding includes SBI, ICICI bank,PNB,HDFC bank and Axis bank.

5.UTI banking sector: This is relatively older fund launched in 2004. This fund have provided returns of 20.50% CAGR since its launch.Top 5 holdings of this fund are ICICI,SBI,HDFc bank, Axis bank and Bank of Baroda.

 

Sectoral funds always carries extra risk as compared to equity diversified funds but they are capable to offer to good returns also.If anyone having good diversified mutual funds in his portfolio can think of banking sector for longer term perspective to get good returns in future.