Best Banking Sector Mutual Funds to Invest 2017 For Long Term

By | February 13, 2017

Top banking / finance sector mutual funds in India 2017: Mutual fund investments are getting more popularity due to better return compared to typical small deposit schemes in India. If you are exploring banking mutual funds to invest then this is the best place to find out some good mutual funds in banking sector 2017. Although banking industry is going through some low in last 1 year, but after demonetization it has been observed that this sector is rising rapidly and trying to find its old glory.

How To Choose The Best Mutual Fund in Banking Sector in India

If you are looking for the best mutual fund in any segment, I think the formula is same for all. But still to make it relevant to banking sector, I am trying to list out some basic points to consider while choosing the best banking mutual funds of 2017.

  • If you are target is long term investment or short term goals, you should compare all the funds with highest interest in longer period like 5 years duration and check the consistency of return from those funds.
  • Banking sector is one of the highest risk sector in this mutual funds. So if you are investing for long run, you should keep an eye on your funds performances regularly and prefer ti exit on suitable downtime if necessary.
  • For short time gain also such funds are beneficial, if you know about this sector well and if something positive or change in policy is expecting in short term.
  • You may not get proper ranking from Crisil or Value Resrach Online for such funds, but consider their AUM size, returns of last few years and the reputation of fund management as the key parameters before investing.

List of 10 mutual funds to invest in for long term in Banking sector

In this article I will be sharing some top banking mutual funds with good return in 3 years duration & 5 years duration, so that you can opt them for long term investment option. Yes, if you are looking for best mutual funds to invest in for long term, then starting a SIP on these funds may give good return in long run. In fact if you are looking to get good return on short term investment, then also these list of top banking mutual funds is highly recommended as few of them gave more than 30% return in 1 year duration.

Top 10 banking mutual funds with highest 3 years return

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Mutual Fund SchemesAUM in Cr3 Year Return
ICICI Pru Bkg&Fin Serv -Direct (G)174.1636
Birla SL Bank&Financial Ser -DP (G)53.1635.6
ICICI Pru Bkg & Fin Serv-RP(G)  Buy Online1,011.7934.6
Birla SL Bank&Financial Ser -RP (G) Buy Online726.234.4
Reliance Banking Fund – Direct (G)176.6629.9
Reliance Banking Fund (G)  Buy Online2,058.8329
Invesco India Banking – Dir (G)4.0228.9
UTI Banking Sector – Direct (G)23.5428.8
UTI Banking Sector (G)  Buy Online425.9227.50
Sundaram Fin-Serv Opp. -Direct (G)3.7326.60


Best 10 banking mutual funds with highest 5 years return

Mutual Fund SchemesAUM in Cr5 Year Return
ICICI Pru Bkg & Fin Serv-RP(G)  Buy Online1,011.7923.00
Reliance Banking Fund (G)  Buy Online2,058.8316.40
Invesco India Banking – RP (G)  Buy Online82.4516.00
R*Shares Banking ETF  Buy Online184.2915.30
R*Shares Bank BeES729.6614.70
UTI Banking Sector (G)  Buy Online425.9213.80
Sundaram Fin-Serv. Opp.-IP (G)0.0413.20
Sundaram Fin-Serv. Opp.-RP (G)126.3812.40
Sahara Bkg & Fin. Services (G)4.8612.30
Kotak PSU Bank ETF  Buy Online21.372.10

Disclaimer: This data is taken from Moneycontrol website. Personally I don’t have any holding on these mutual funds. I have my own interest on reading and analyzing mutual funds and sharing through my blog. You are asked to consult with your financial adviser or do you own research before investing in mutual funds. Thanks for understanding.

Should I Invest in Top Banking Mutual Funds in Short Term or Medium Term or Long term?

Well, as I have mentioned that banking sector carry the most unpredictable nature when it comes to return. You can get very good return in short term or medium term if some positive changes are expecting from RBI side or specific banks development etc.

As per the history of last 1 year it was highly volatile, but that doesn’t mean that this sector is not good for long term investment. If you can invest with close watch then you can make huge money in long run. What do you think about investing in banking sector mutual funds? As a beginner I think better to start with ELSS mutual funds which will give better return with income tax benefit as well. You can share your feedback or any query here by writing a simple comment below related to mutual fund investments in India.

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