Banking MF schemes emerge as most money makers for investors

Mutual funds in this category average a return of 38% in a year, well above key benchmarks

India’s banking sector thematic funds from the stable of mutual fund (MF) houses have minted the most for investors over the past year.

The benchmark indices returned around 17 per cent; banking funds have given 38 per cent to investors.

The top equity fund managers have been positive on the sector. Their selective picks, both from private and state-owned lenders, helped their portfolios generate better returns. Banking funds not only outperformed the key indices but did much better than the mid-cap and small-cap categories of MFs.

There are 16 banking funds. The major ones are Kotak Banking ETF Fund (Rs