DSP Mutual Fund has launched the DSP Banking & Financial Services Fund (DSP BFSF), offering investors a chance to invest in the long-term structural growth opportunity in the banking and financial services sector. The New Fund Offer for DSP BFSF will open for subscription on November 20th, 2023, and will close on December 4th, 2023. Apart from banks, the sector also encompasses major areas like NBFCs including Housing Finance Companies, life insurance, non-life insurance, AMCs, exchanges, and depositories, which have grown faster than India’s nominal GDP in the last 15 years.
The asset allocation for DSP BFSF would be between 80% to 100% in equity and equity-related securities of banking and financial services companies, 20% in other companies’ securities, 20% in debt and money market instruments, and 10% in units issued by REITs and InvITs.
DSP Mutual Fund MD & CEO, Kalpen Parekh, believes that companies in the BFSI sector have large profits compared to other sectors and that the profit pool is growing due to diverse businesses across insurance companies, mutual funds, wealth management firms, tech platforms, payments, and fintech.
