Correction in banking, financial funds: Exit if unable to handle volatility

Last Update Date: 06-10-2026

Published by Business Standard

Abhishek Kumar's role: Quoted

Abhishek Kumar said investors may stay if their view on India's credit growth holds, suggested exiting if overweight or if goals are met early, and recommended staggered entry with a five- to seven-year horizon.

Banking and financial services funds fell sharply over a month in March 2026 amid war-related macro risks and asset-quality worries. The article sets out the reasons for the fall, the sector's strengths, when existing investors might stay or exit, and how new investors could approach these sector funds.

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Correction in banking, financial funds: Exit if unable to handle volatility

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