SBI make money mutual funds: If you want to double the money quickly then you have a good chance. Let’s know all the things related to this …
People of the country still consider investing in FD the most safe and good. But, now government and private banks are giving up to 6 percent returns. Therefore, investors are now investing in mutual funds to get more profits. According to data released by the Association of Mutual Funds in India (AMFI) in the past, the total number of folios (called accounts opened in mutual funds) has crossed 9.43 crore in the year 2020. In comparison, in 2019, the mutual fund industry added 68 lakh folios. Experts say that at this time good returns can be achieved by investing money in banking sector fund SBI Banking & Financial Services Fund. Because in a week, it has got a big return of 12 percent and 6 months 52 percent. If someone had invested 10 thousand rupees a week ago, then his amount would have increased to Rs 11162. Right there
Why should you invest in the banking sector
After the budget, the record breaking boom in the major benchmark indices of the domestic stock market, the Sensex and the Nifty, continues. Banking shares are touching new heights in this boom. Rating agencies around the world believe that the boom in banking stocks will continue. In such a situation, you have a chance to earn big money.
Experts tell that the banking system will improve faster with the announcements made in the budget. That’s why BSE’s banking index jumped 9 percent in a day.
At the same time, talking about mutual funds, banking sector funds gave 7.63% returns in a day. After going through a bad phase in the last one year, these schemes have given 40% returns in the last three months. Those who invest in mutual funds believe that in the coming days, there is an opportunity to double the money in banking mutual funds scheme.
What happened in the budget
Experts say that development financial institutions, increasing FD limit in insurance and disinvestment in PSE and PSB will boost the financial sector.
To remove bad assets, it has been proposed to create a bad bank with the intention of increasing credit flow in the banking sector. In the budget, a lot of planning has been done to promote banking and financial sector overall. Its effect has also been shown on the stock markets.
Vivek Mittal, head of VM Portfolios, told TV9 Hindi that ARC (Asset Restructuring Companies) will also help financial institutions improve their balance sheets for stressed debt assets. This will improve the health of the financial sector.
The coming year can be really good for banking sector funds. After the budget announcements, its hallmark has been seen. The government wants to increase economic development.
The banking sector has already started showing this growth. Banking sector is the backbone of any economy. If the government goes ahead to bring the economy back on track, the sector will do well.
However, investors should not forget that this sector can remain volatile. Mutual fund planners believe that investors who do not have much risk appetite, should stay away from these schemes.
If you want to earn returns from banking and financial sector even with less risk, then invest in diversified equity funds. If you can afford volatility, then you can invest 5% of your portfolio in these schemes.
Come learn about SBI Banking & Financial Services Fund…
Look at the list, how much return is received on 10 thousand rupees…
If you have done SIP, your total investment is 12 thousand rupees in a year. At the same time, now its value has increased to 17 thousand rupees. In 3 years, 36 thousand rupees would have become 50 thousand rupees. In 5 years, the amount would have increased to 95 thousand rupees.
Let us tell you that SIP is called Systematic Investment Plan. You have to put a fixed amount every month in the mutual funds scheme of your choice.
If you want, you can also invest every week through SIP. Discipline is very important in investment. SIP maintains discipline in investment. Besides, it continues to invest regularly.
Whether the market is fast or slow, your money keeps going to mutual funds. For example, if you have decided to put a fixed amount every month in a mutual fund scheme, then you will not have to take a separate time for this.
SBI Banking & Financial Services Fund has invested in stocks like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, SBI, Axis Bank. All these stocks are constantly touching new heights.
This fund was started on 26 February 2015. Its fund manager is Milind Agarwal. You can invest at least 500 rupees in this fund through SIP. If someone withdraws his money from the fund 365 days, ie before one year, then he will not have to pay any charge. At the same time, even after withdrawing the investment made 3 years ago, there is no exit load.
What is mutual fund
Mutual fund companies raise money from investors. They invest this money in assets such as stock markets, bonds and government securities. In return, mutual funds also charge from investors. There are several different mutual fund houses in the country which appoint fund managers to invest. The fund manager has a good knowledge of the market, who in his / her understanding invests in such a fund that has maximum profits.
To invest in mutual funds, these companies earn commissions from investors. For those who do not know much about investing in the stock market, mutual funds are a good option for investment. Investors can choose the scheme according to their financial goals. The advantage of mutual funds is that here your investment is managed by the fund manager, who has a good understanding of the market.
In such a situation, he invests your money thoughtfully, where the returns are expected to be better, and your portfolio gets diversified through mutual funds. Because here, instead of just one share, money is invested in different shares or asset class. If there is a risk in one, then it is covered in the other. Your money is also invested in debt funds, so even if there is market volatility, the money is still safe. You can also save tax by investing in ELSS category.
