Why Reliance Banking Fund Is Among the Top Choice of Indian Investors? 

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Created By MySIPOnline
On Jun 15, 2019
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Why Reliance Banking Fund Is Among the Top Choice of Indian Investors? 

As per the market reports of mutual fund industry, banking funds have surpassed other sectors in May, 2019 with Reliance Banking Fund achieving remarkable growth. The average return of the mutual fund was 6.95% and thus, being the top choice for the investors. The growth in the banking sector in 2019 has been phenomenal as compared to the previous year. The sector has bounced back stronger from the volatility of 2018 with the banking fund of Reliance Mutual Fund being the top scorer. In this article, we will see several aspects of the fund which makes it a ‘must’ scheme to include in your portfolio. Stay connected! 

5 Compelling Reasons to Invest in Reliance Banking Fund

  • Stable Government & Good Monsoon Expectations: The formation of the stable government at the center was in accordance with the market sentiments which played a vital role in the revival of the banking sector, especially for Reliance Growth Fund. Also, according to the financial experts, monsoon is expected to be good this year which will further assist the Indian Economy creating good opportunities for the banking sector to surge excellent gains.
  • Profitable Situation of Private Banks: With the progressive resolution of NPA crisis, the private banks are at sigh of relief. Tight monetary policies implemented by the RBI (Reserve Bank of India) again cleared the path for the banking sector. The top holdings of Reliance Growth Fund constitutes of the best private banks in India which again helped the scheme in achieving positive returns.
  • Interlink of Financial Sectors with Others: Financial sector is considered as the backbone of the Indian Economy as it is interlinked with all the sectors. Development in any of the sector is not possible without the indulgence of banking sector. Thus, among all the sectors, banking sector is one such sector that can be trusted blindly by the investors. Here, is another strong reasons due to which an investor should start the SIP investment in Reliance Banking Fund.

  • Efficient Investment Style: Following growth style of investment, Reliance Banking Fund invest in just 24 banking stocks which depicts the “Quality Over Quantity” approach of the fund manager- Mr. Vinay Sharma. Moreover, the top performing banking sector of Reliance Mutual Fund also invests a significant portion in the debt and money market instruments to dilute the market risk.
  • Excellent Track Record: The past performance of Reliance Banking Fund has been exceptional. The long term capital appreciation of the fund has managed to beat the benchmark and category’s average. The 7 and 10 year annualized return of the banking fund is 17.90% and 17.09%, respectively. Thus, it is advisable that an investor should always maintain a long term investment perspective while investing in Reliance Banking Fund.


These were some of the reasons due to which an investor should start including this mutual fund scheme in the portfolio to grab the market opportunities prevailing in the finance sector. But banking sector isn’t a good choice for everyone. To find out whether you are a perfect candidate to invest in banking fund, keep reading.

Who Should Start Investing in Reliance Banking Fund?

1. High Risk Takers: Are you willing to expose your corpus towards market risk? Congratulations! You can invest in Reliance Banking Fund. The fund invests large percentage of assets in the equities and equity related instruments which makes it more prone towards market risk. 
2. Experienced Investors: Reliance Banking Fund isn’t a good pick for the amateur investors. For taking the right call, an investor has to have some knowledge about the market conditions thus, if you have the subsequent knowledge about the market dynamics then only consider investing in Reliance Banking Fund.
3. Long Time Investors: Banking funds are meant for the long term investors only. If you have a short term financial goal then consider investing in some other category of mutual fund space.
       
So, here you are knowing all the vital information about the Reliance Banking Fund. Therefore, as a wise investor start your mutual fund investment in banking fund of Reliance MF to target healthy gains.

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