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Banking funds top charts, outperform other sectoral plans

May 25, 2023

Banking funds top charts, outperform other sectoral plans
Banking funds have emerged as the top sectoral performers in the past one year, with the category giving returns in excess of 29%, outperforming other sectoral and thematic schemes.

In comparison, infrastructure funds gave returns of 21.6% while the performance of pharma and IT schemes remained abysmal with returns of 2.7% and 2.8%, respectively, data from Value Research shows.
 
Among thematic funds, PSU funds returned 24.7% and consumption-oriented schemes clocked returns of 15.8% during the period.
 
Tata Banking & Financial Services has returned 30.4%, Sundaram Finnacial Services Opportunities 32% and SBI Banking and Financial Services Fund 21.8%.
 
Two PSU Bank ETFs-Nippon Ind ETF Nifty PSU Bank BeES and Kotak Nifty PSU Bank ETF-have topped the charts with returns of over 64%.
 
The Nifty Bank index has gained 27% in the past year and is hovering near its all-time high of 43,677. Shares of banks came under pressure in late January after the publication of the Hindenburg report regarding the Adani Group.
 
State-owned lenders had a “material” exposure to the Adani Group at 30% of the group debt. For PSU banks, the exposure was more meaningful at 0.6% of loans and 5% of FY24 net worth, CLSA had said in a note.
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