LIC MF Banking & Financial Services-Direct Plan

Reason for recommendation 

This is an open-ended equity fund, which invests majorly in equity and equity related securities of companies engaged in banking and financial services sector. The banking sector is going through lot of turmoil recently which might not be comforting for many investors. Nevertheless, if one looks with a long-term investment horizon, this sector is expected to give better returns to the investors. This fund has good mix of both public-sector banks, private sector banks and other financial services companies. The major holdings of the fund are in ICICI Bank and SBI. The former has already started unlocking its value in its subsidiaries while the later is also taking steps in the same direction. SBI is all set to leverage its reach and technology to improve its financial performance. In addition to this other major PSU bank, Bank of Baroda is also going to perform well as management has indicated its intention to grow profitably instead of just growing. Hence, we believe this fund is going to generate better returns compared to other funds. The fund is suitable for high risk investors.