The announcement from RBI on loan EMI impacted the banking and financial services stocks in the market. Many of banking stocks are nearing 52 weeks low. It can be an opportunity to invest lump-sum in banking services to diversify your investment portfolio. In this blog, we would discuss on banking stocks and banking services mutual funds to start now for long term wealth creation.
Here the banking stocks and it is stock prices. DCB Bank(60.45), Federal bank(37.35), AU small finance bank(399.95), RBL bank(107.25), Karnataka bank(35.85), Indian bank(44.25), PNB(26.65), Canara bank(77.20), South indian bank(4.94), IDFC first bank(18.85) and Bank of baroda(37.45), HDFC Bank Ltd(839) and Axis bank(336.95) on May 22, 2020. All these stocks are trading near to 52 weeks low. Apart from banking stocks, few of valuable financial services stocks also nearing 52weeks low. Bajaj finance(1895), Bajaj Finserv Ltd(4316), LIC housing finance(241.05), Mahindra & Mahindra Financial Services Ltd(127.55).
Opportunity to diversify in financial services:
Retail investors can increase their holdings in banking and financial stocks. If case you do not have any financial stocks in your portfolio it is right time to look at and start investing in banking stocks to diversify your investment. You can do your own analysis or you can contact financial advisors to select right stocks for your financial goals.
Invest in Banking services mutual funds:
Sectoral mutual funds give opportunity to invest in focused investment on one sector. Banking and financial services mutual funds allow you to invest in banking instrument. You can utilize this opportunity to invest lump-sum in banking sector mutual funds. Split the investment to 5 and start monitor the sectoral funds. Invest the part of lump-sum in banking sector.
Here is list of banking and financial mutual funds to start your investment in financial sectors. You can select any one of the fund and start investing for better returns in long term. Diversifying would increase the possibility to get maximum returns and minimize the risks.
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- SBI Banking & Financial Services Growth Direct Plan
- Aditya Birla Sun Life Banking & Financial Services Growth Direct Plan
- ICICI Prudential Banking & Financial Services Growth Direct Plan
- Nippon India Banking Growth Direct Plan
SBI Banking & Financial Services Growth Direct Fund:
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- Expense ratio 1.14%
- Invested in Axis bank,ICICI bank,HDFC bank, AU Small finance bank, Muthoot finance and many more.
- NAV on 22 May 2020: ₹ 13.0026 ( 4 years low)
- Invested 74% in banks and 10% in insurance
- Minimum lump-sum 5000 and minimum SIP 500 rupees
Aditya Birla Sun Life Banking & Financial Services Growth Direct Fund:
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- Expense ratio 1.27%
- Invested in Axis bank,ICICI bank,HDFC bank, Bandhan bank, Bajaj finance and many more.
- NAV on 22 May 2020: ₹ 18.55 ( 4 years low)
- Invested 53% in banks, 15% in insurance, 15% in NBFC and 5% in housing finance.
- Minimum lump-sum 1000 and minimum SIP 1000 rupees
ICICI Prudential Banking & Financial Services Growth Direct Plan
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- Expense ratio 1.33%
- Invested in Axis bank,ICICI bank,HDFC bank, SBI, Bajaj finserv, LIC Housing Finance Ltd and many more
- NAV on 22 May 2020: ₹ 41.47 ( 4 years low)
- Invested 50% in banks, 10% in insurance, 18% in NBFC and 10% in housing finance.
- Minimum lump-sum 5000 and minimum SIP 500 rupees
Nippon India Banking Growth Direct Plan
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- Expense ratio 1.58%
- Invested in Axis bank,Federal bank, HDFC bank, SBI, Bajaj finserv, Indusind Bank Ltd. and many more.
- NAV on 22 May 2020: ₹ 156.6 ( 4 years low)
- Invested 62% in banks, 18% in NBFC, 3% in insurance and 4% in housing finance.
- Minimum lump-sum 5000 and minimum SIP 100 rupees
Select the one and invest in banking sector mutual funds to diversify your investment. Happy investing.:)
LIC and EPF invests your money in Nifty Index. Are you investing?
Gold mutual funds gave 50% returns. Diversify by investing 10% of your investment in Gold.