Who should Invest in Banking and PSU Funds?
1. People Who Want to Start Investing in Mutual Funds: Banking and PSU Funds are an excellent option for those investors who are beginners in the field of mutual fund investment as Banking and PSU Funds have lower risk as compared to any other fund scheme. Lower risk will attract the investors and also give them confidence about the mutual fund market.
2. Investors Who Have a Low-Risk Appetite: Banking and PSU Funds are ideal for those investors who look for lower risk in investment schemes. The majority of investment is done in high-rated debt securities, which provide lower risk and constant returns to the investors. Returns help investors to beat inflation and grow their portfolios at pace.
3. Investors Who Look for Funds with Lower Expense Ratio: Almost all Banking and PSU Funds have lower expense ratios as compared to the expense ratio of other funds in the mutual fund market. The expense ratio is also seen as a decision-maker for investment as the lower the expense ratio higher the net return to the investor.
4. Investors Who Look for Diversified Investment: Banking and PSU Funds diversify their investment as they invest a lot in debt, and even though you are invested in a single fund, you can experience investing in different and big banks and PSUs.
5. Investors With Mid to Short-Term Goals: Banking and PSU Funds can be ideal investment horizons if the investment horizon is around one to three years. So for short-term goals, this could be your go-to fund.