 "Should you invest in banking and financial services funds at this time?")
Banking and financial services funds are at the top of the chart with a category average return of 10.38 per cent over the past three months. If you are tempted to invest in these funds, think again. If you own diversified equity funds, your fund manager would already have considerable exposure to this sector. Besides, if you look at calendar year returns, you will find that the returns of this category tend to be volatile (see table). If you do want to take a tactical bet on sector funds, enter a category that is down and out currently. Exit it when it is doing well. Restrict exposure to sector funds to 5-10 per cent of the equity portfolio.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%