Active banking funds fail to capitalise on PSU rally: Value Research data

Experts expect performance to catch up, see private lenders outperforming

Sectoral funds, focused exclusively on public sector banks (PSBs), have delivered the strongest returns among domestic mutual fund (MF) categories over the past six months.

 

However, active banking funds have significantly lagged because of their heavy tilt towards private lenders.

 

During the past six months, median returns of active banking and financial services funds are at 9.2 per cent. This compares to a nearly 28 per cent rise in Nifty PSU Bank index, shows data from Value Research.

 

Most active banking and financial services (BFSI) funds have a large chunk of their investments (over 50 per cent) in the top