What is a banking & financial sector fund?
Oct 12, 01:10

Banking, financial services and insurance (BFSI) sector has the largest weight in benchmark indices. But if you wish to get more of banking in your portfolio, there are mutual fund schemes that invest only in this sector. These banking and financial sector funds can be passive or are actively managed, with some investing exclusively in private banks, some in government-owned banks, some across all banks and so on. Thirty such schemes across fund houses manage assets worth Rs 47,889 crore as on September 30, 2021. Given the sectoral concentration risk, only investors with high-risk appetite and a fair understanding of the sector should buy schemes.

Banking on Financials