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Bankable Or Not?

Reliance Banking’s performance has been hit by the recent poor performance of the banking sector…

I am investing Rs 1,000 SIP in Reliance Banking fund through since December 2010. The investment is down 15 per cent now, should I continue investing in it?- Babuli Pradhan

Reliance Banking is a banking sector fund that invests in bank and has been a good performer over the past three- and five-year time frame. The fund earned an annualised 20.30 per cent in the past three years and an annualised 23.16 in the past five years. However, the sector has been impacted which has pulled its performance in the past one year. Such risks are inherent with sector funds, which you should be aware of. Moreover, nine months is too short a time to write this fund off, if this is not your only investment, you should consider continuing your investments if you can stomach the risk and volatility, else look for broad diversified equity funds that are less risky.

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