How do Banking and Financial Services Funds Work?

Financial Sector Mutual Funds concentrate investments in companies operating within the financial sector. These funds typically invest 80% or more of their assets in stocks of banks, NBFCs, insurance companies, asset management firms, and other financial service providers. Fund managers analyse sector trends, regulatory changes, and company fundamentals to select stocks with strong growth potential.

The funds benefit from India's increasing financial inclusion, rising credit penetration, and growing insurance adoption. This sector-focused approach provides investors with concentrated exposure to financial services, making these funds suitable for those seeking to participate in India's financial sector growth story.