Banking funds shine amid Budget boost, deliver 35% returns in three months

Top performers within domain include Tata Banking & Financial Services (15.6%), SBI Banking and Financial Services Fund (16.3%) and Sundaram Fin Services Opp (15.5%)

The rally in banking stocks has boosted banking funds, which had been laggards for much of last year.

The category has given returns in excess of 35 per cent in the past three months, higher than other sectoral and thematic funds. In comparison, pharma and IT funds returned 10.4 per cent and 19.6 per cent, respectively, data from Value Research shows. Consumption oriented funds gave 22 per cent during the period.

One-year returns (10.7 per cent) for banking funds, however, still lag peers.

Top performers within the category include Tata Banking & Financial Services (15.6 per cent) and SBI Banking