If you want to invest in banking sector then banking mutual fund can also prove to be a better option.

If you want to invest your money in banking sector then banking mutual fund can also be a better option. If you look at the returns in the last 5 years, this option has proved more attractive than FD. In most banks’ FDs, it takes 10 years to 11 years or even more for investors to double their money. At the same time, the fund that gave the top returns in banking mutual fund category has doubled investors’ money in just 6 years. A banking mutual fund comes in equity category, where investors’ money is invested in shares of banks and financial companies. On the other hand, bank FD is among the most popular options for investment. But for the last few days banks have been trying to reduce interest rates on FD. That is, the benefit in bank FD has now reduced.

Banking fund returns in 1, 3, 5 years

Talking about the last 1, 3 and 5 years, the banking mutual fund segment has given returns of 12 per cent, 13.50 per cent and 6.11 per cent annually to the investors. However, in case of different funds, in the 1, 3 and 5 years it has been 24.65 per cent, 22.40 per cent and 13.61 per cent.

Interest on bank FDs in 1, 3 and 5 years

HDFC Bank’s interest rates on fixed deposits for 1, 3 and 5 years are 6.30 per cent, 6.40 per cent and 6.30 per cent. At the same time, in SBI this rate is 6.25 percent for all three tenures. While the interest rate in ICICI Bank is 6.10 percent, 6.30 percent and 6.40 percent.

Value in 3 years on 1 lakh investment

Banking fund

1. SBI Banking & Financial Services Fund

3-Year Return: 22.40%
1 Lakh Value in 3 Years: Rs. 1.83 Lakh

2. Tata Banking & Financial Services Fund

3-Year Return: 21.02% of
1 Lakh in 3 Years Value: Rs 1.77 Lakh

3. Invesco India Financial Services Fund

3-Year Return: 20.61% of
1 Lakh Value in 3 Years: Rs. 1.75 Lakh

Bank FD

SBI

Interest on 3-year FD: 6.25%
Value of 1 lakh investment in 3 years: Rs 1.20 lakh

HDFC Bank

Interest on FD of 3 years: 6.25%
Value of 1 lakh investment in 3 years: Rs. 1,20,455 lakh

ICICI Bank

Interest on FD of 3 years: 6.30%
Value of 1 lakh investment in 3 years: Rs. 1,20,116 lakh

Value in 5 years on 1 lakh investment

Banking fund

1. Invesco India Financial Services

5 Year Return: 13.61% of
1 Lakh Value in 5 Years: Rs 1.89 Lakh

2. ICICI Prudential Banking and Financial Services Fund

5 Year Return: 13.53% of
1 Lakh Value in 5 Years: Rs 1.89 Lakh

3. Aditya Birla Sun Life Banking & Financial Services Fund

5 Year Return: 12.86% of
1 Lakh Value in 5 Years: Rs. 1.83 Lakh

Bank FD

SBI

Interest on 5-year FD: 6.25%
Value of 1 lakh investment in 5 years: Rs 1.20 lakh

HDFC Bank

Interest on FD of 5 years: 6.30%
Value of 1 lakh investment in 3 years: Rs. 1,20,116 lakh

ICICI Bank

Interest on FD of 3 years: 6.30%
Value of 1 lakh investment in 3 years: Rs. 1,20,455 lakh

Note: Here we have given information about the top 3 funds in terms of giving returns in 3 years and 5 years. At the same time, interest earned on 3 and 5 year FDs of SII, HDFC and ICICI Bank has been made the basis.

(Discliamer: We have given information on the performance of mutual funds here. Investing in the market has its own risks, so be sure to consult the advisor at your level before investing.)

LEAVE A REPLY

Please enter your comment!
Please enter your name here