Banking funds have gained from global inflows amid US-China deal hopes

But beware that NBFCs with high exposure to real estate are not out of the woods yet

Banking and financial sector funds have witnessed a sharp runup in recent times. They are up 19.41 per cent over the last year. Of this, 16.24 per cent returns have come in just the last three months.

Several factors have contributed to this rise. “Flows to emerging markets have been strong in the past few weeks amid optimism about a trade deal between the US and China. A view is also developing that emerging markets (EMs) may have a better time in 2020 than in 2019,” says Vinay Sharma, fund manager, Nippon India Mutual Fund. India has been a large