BFSI Sector: A Gateway to India's Digital Financial Revolution

Investment in banking and financial services mutual funds surged 37% year-on-year to Rs 48,000 crore in May 2025. The BFSI sector remains resilient, showing impressive returns and attracting investors. With new fund launches and expanding unlisted players, the BFSI landscape offers significant long-term growth potential.

Investment in India's banking and financial services sector-based mutual funds has surged by 37% year-on-year, reaching Rs 48,000 crore in May 2025. This growth is bolstered by robust investment returns ranging from 22% to 30% over the past year, indicating the sector's strong fundamentals.

The BFSI sector, being the largest by market capitalization, has demonstrated resilience amid market fluctuations. The BSE financial services index saw gains of nearly 14% in the first quarter of the financial year, while the BSE Bankex rose by 10%.

The sector is poised for further expansion with potential listings from players in insurance, fintech, and digital lending. Aligning with this trend, Mahindra Manulife Mutual Fund launched the Mahindra Manulife Banking and Financial Services Fund, offering investors opportunities for long-term growth.

(With inputs from agencies.)