After the banking crisis in America, there is a big decline in mutual funds including the stock market. Mutual funds in the banking and financial services sector fell by up to six per cent last week after the collapse of Silicon Valley Bank and Signature Bank in the US. The banking crisis jolted the global financial system and weakened investor sentiment towards the banking sector in India as well. In such a situation, banking stocks declined by 3-13 percent during the week under review.
What is the opinion of the expert?
Experts believe that its direct impact on the Indian banking sector is marginal. Due to continuous selling in bank stocks, mutual funds of this sector also declined. According to data compiled by ACE MF NXT, all 16 mutual funds in the banking sector gave negative returns to investors in the range of 1.6 per cent to 6 per cent in the week ended March 17.
Which funds declined
Data shows that so far this year, these funds have given negative returns ranging from eight per cent to 10 per cent. Funds which declined more than five per cent in the last week included Aditya Birla Sun Life Banking & Financial Services Fund, Tata Banking & Financial Services Fund, HDFC Banking & Financial Services Fund, LIC MF Banking & Financial Services Fund and Nippon India Banking Fund & Financial Services Fund.
loss due to fluctuations
FYERS Head of Research Gopal Kavalireddy said that these funds declined due to the ongoing volatility in the market and the possibility of a hike in interest rates. He said that apart from this, foreign portfolio investors (FPIs) are selling to reduce their investment holding in many banks and financial sector institutions.
