Preethi RS, a manager at DSP Mutual Fund, is optimistic about the Banking, Financial Services, and Insurance (BFSI) sector, believing that recent valuation corrections have created attractive entry points for long-term investors. She noted that system credit growth is on track to reach 15% for the financial year 2026, indicating a healthy environment for lenders. Capital markets are also showing signs of recovery, with increased derivatives activity and mutual fund inflows. Preethi pointed out that large private banks are currently trading at some of their lowest valuation levels historically, despite justified concerns over their growth rates. Additionally, smaller and midcap banks have improved significantly since the Reserve Bank of India's Asset Quality Review process in 2015, presenting new investment opportunities. Although foreign institutional investors (FIIs) have sold nearly $13 billion in March, Preethi views this as a potential bottoming signal rather than a cause for alarm, suggesting that India remains an attractive investment destination. Overall, she believes that the risk-reward ratio in the BFSI sector is increasingly favorable for investors.