Sahara Banking & Financial Services Fund

Sahara Banking & Financial Services Fund is being managed by A N Sridhar. Sridhar is a competent fund manager and has several well performing funds to his credit. He has over 20 years of experience and has been managing this fund from its inception.It is the top performer in the three year period among its peers. If you have invested in this young fund, you can continue to do so. However it must be borne in mind that investing in sectoral funds is risky and they shouldn’t be part of the core portfolio. This fund should make a great addition t one’s satellite portfolio.

Where does Sahara Banking & Financial Services Fund invest your money ?

Sahara Banking & Financial Services Fund is a multi cap Banking and Financial Services fund which invests your money in banks and non-banking financial companies across market caps. Its portfolio has 54.68% exposure to large companies, 39.14% to medium size companies and 6.18% to small companies.


Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not Suitable for?
  • Child's Education
  • Child's Marriage
  • Retirement Planning
  • Home Purchase
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Do not make Sahara Banking & Financial Services Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Sahara Banking & Financial Services Fund can be part of your satellite portfolio. Do not do the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Our recommendation for existing investment
How has Sahara Banking & Financial Services Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Sep 2008, your value of investments would be around Rs 3.31 lakhs. The performance has been better than other mutual funds in this category. The fund has been giving at around 27.69% every year for those who stayed invested since inception.

Assume you had invested Rs 10,000 every month in Sahara Banking & Financial Services Fund through SIP from September 2008 today you would have around Rs 8.04 lakhs.

How will Sahara Banking & Financial Services Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. 3

We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Sahara Banking & Financial Services Fund is 2.70%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Sahara Banking & Financial Services Fund does not qualify for sec 80C ELSS benefits.

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