Banking sector funds: Invest now to capitalise on credit growth pickup
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that slower GDP growth could hurt these funds and that sector funds can be volatile. He suggested capping exposure at 10–15% of the equity portfolio with a three-to-five-year horizon.
More of Abhishek's views on mutual funds
The article examines banking and financial services sector funds after two years of lagging other equity categories. It covers why they underperformed, the case made for credit growth, rate cuts and low valuations, and the risks, including slower GDP growth and loan stress.
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Banking sector funds: Invest now to capitalise on credit growth pickup