Systematic investment plans (SIPs) are no doubt the best way to invest in mutual funds. SIP investment in mutual funds involves market-linked risks. The risks certainly are higher for equity funds than debt and balanced mutual funds. The risk in SIP depends on the investment option that is chosen considering the risk profile, risk appetite and liquidity. There are various types of MF schemes available for investors in the market. Open ended funds are the most common form of investment in mutual funds. These funds do not have any lock-in period or maturities; therefore, it is open perennially. One such fund is Tata Banking & Financial Services Fund.
Read More: Types of post office saving schemes and their benefits
Tata Banking & Financial Services Fund is an open-ended equity scheme investing in the Banking & Financial Services Sector. The fund’s 80 percent investment is in equity and equity-related instruments of Indian firms engaged in the banking and financial services industry. The fund was launched on December 28, 2015, therefore it will soon turn seven years old. The fund has produced a CAGR of 13.57 percent from its start.
Performance of Tata Banking & Financial Services Fund
A monthly SIP of Rs 10,000 would have made your total investment of Rs 1.20 lakh to Rs 1.32 lakh during the course of the past year, giving a return of 20.42 percent. A monthly SIP of Rs 10,000 would have turned total investment of Rs 3.60 lakh to Rs 4.63 lakh over the previous three years, showing a return on investment of 17.09 per-cent for the fund.
The fund’s 13.30 percent return over the previous five years with a monthly SIP of Rs 10,000 would have turned investment of Rs 6 lakh to Rs 8.37 lakh. Over a period of seven years, the entire investment of Rs 8.40 lakh would have been Rs 13.13 lakh, considering the fund’s return from the inception of 13.57 percent.
