Banking and Financial sector funds are those funds which consists Private and Public bank, NBFC's, Broking, insurance, Power finance banks and Asset management companies. Because of nature of this fund, it is highest risky funds vs highest returns also.
If sector faces tough times, so your investment also. Lack of diversification makes this fund risky. Don't allocate more than 10% of total portfolio.
Ideal investment period which are at least more than 5 years.