Published on Mon, Feb 06, 2012 at 19:28 | Source : Moneycontrol.com
Updated at Tue, Feb 07, 2012 at 09:28
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Banking Funds outperformed in Jan 2012
Funds focusing on the banking and financial services sector topped the charts in January, registering average returns of 23.74%, about in line with banking index's performance.
Funds focusing on the banking and financial services sector topped the charts in January, registering average returns of 23.74%, about in line with banking index's performance.
Reserve Bank of India's decision to cut the cash reserve ratio (CRR) for banks by 50 basis points on January 24 boosted the banking sector and raised hopes that the central bank might soon start to cut its key policy rate.
The CRR is the proportion of deposits that banks must keep at the central bank. Stronger-than-expected results from private sector lenders including HDFC Bank and Axis Bank also supported sentiment. The UTI Banking Sector Fund was India's best performing fund in January, with a return of 26.2%, followed by the Goldman Sachs PSU Bank Exchange Traded Scheme, which returned 25.7%.
