Banking Sector Funds

Ventura Securities Limited

After a sustained period of high inflation and slow growth, the Indian economy is all set to stage a recovery under the helm of the Narendra Modi-led BJP government. India’s banking sector, which is at the fulcrum of India’s economic recovery, is expected to witness secular growth.

We believe that the Indian banking industry is on the threshold of significant expansion, given that:

India is the fastest developing economy in the world. India’s banking sector has grown at ~3x GDP; on the latest methodology

of GDP computation we project growth at 2.5x GDP. Domestic credit as a % of GDP is dismally low as compared to other

emerging economies Huge potential with an ‘unbanked’ population of 300 mn.  Accordingly, we expect the banking industry to grow at a 2 - year CAGR of

19% to Rs 255 tn by 2017.

Indian Banking Sector Overview

Sustained room for Growth

Growth of Banking sector funds

Banking sector funds have been key performers in the last one year, which is clearly evident from the rise in AUM of about 73% in just 1 year (Mar 2014- Mar-2015)

Market cap of Banking Industry

The above table shows that the market cap for public sector banks is almost half that of private sector banks, in spite of the presence of 24 public sector banks as compared to 16 private sector banks in the industry. This indicates private banks have grown more significantly than public sector banks.

Banking Sector Funds Performance

Scheme Name AUM (Rs.Cr)

Latest NAV(Rs)

Absolute Returns CAGR Returns

3 Mths 6 Mths 1 Year 3 Yrs 5 Yrs

Birla SL Banking & Financial Services Fund 561 16.15 -2.42 -6.54 19.36 NA NA

ICICI Pru Banking & Fin Serv Fund 896 36.05 -2.88 -5.16 15.88 26.05 15.07

Religare Invesco Banking Fund 88 32.60 -5.67 -9.47 14.15 19.11 10.49Reliance Banking Fund 2285 169.09 -5.44 -8.79 12.02 21.81 11.14Sundaram Financial Services Opportunities Fund 140 27.23 -5.72 -8.58 11.14 17.36 6.26

UTI Banking Sector Fund 416 63.18 -4.50 -8.13 10.03 17.51 8.38Baroda Pioneer Banking & Fin Serv Fund 53 14.95 -7.03 -10.75 7.86 15.51 NASahara Banking & Financial Services Fund 11 43.46 -6.43 -9.09 7.10 16.96 7.31Taurus Banking & Fin Serv Fund 7 16.23 -6.78 -11.31 2.79 14.33 NASBI Banking & Financial Services Fund 274 9.07 -5.38 -9.25 NA NA NALIC Nomura MF Banking & Financial Services Fund 42 9.42 -5.74 NA NA NA NA

BenchmarkS&P BSE BANKEX 19749.57 -7.33 -9.65 9.78 19.21 10.08CNX Bank 17214.40 -7.14 -9.75 9.52 19.25 9.91

Source: Ace MF, Data as on 27th August 2015

Sector wise and Company wise exposure

Conclusion We believe the overall outlook for this sector is positive, especially as the new

government is primarily focused on industries such as infrastructure, development and construction. We believe that there is good growth potential in this sector and recommend that investors consider these funds as a part of their investment portfolios. Investors can start adding these funds to their portfolios by way of SIPs to benefit over the long term.

click here

https://www.ventura1.com/05092015/home.aspx?ref=test for comprehensive report which provides valuable insights on the fortunes of banking sector mutual funds.

Time is ticking and every second counts….START INVESTING NOW….ITS NEVER TOO LATE !!

Thank you!Email–mfcustomercare@ventura1.com