Kolkata, Jun 14 : HDFC Asset Management Company, one of India’s leading mutual fund
house with Rs 4.1 trillion in assets under management announces the launch of New Fund Offer
(NFO) for retail investors – HDFC Banking and Financial Services Fund – Multiple Themes,
Many Opportunities, One Fund.
The new fund aims to invest in banking and financial services sector across segments and
market capitalization including, banking, broking, asset management, wealth management,
insurance, non-banking financial companies (NBFC), and other companies that may be
engaged in providing financial services.
The fund will invest in companies which are leaders and/or are gaining market shares due
to superior execution, scale, and better adoption of technology. The fund will also focus on
opportunities in new listings including pre-IPO participation in lending, insurance, capital
market businesses and Fintechs. The NFO opens on June 11 to 25.
HDFC Mutual Fund views that this is the opportune time for banking and financial services
fund, with GDP growth bottoming out and robust economic growth is likely in FY22 and beyond.
The growth is expected to be led by normalization of economic activity and pent up demand,
global growth and ample liquidity should further aid the sector.
The measures taken by Government and RBI to support the economic revival will benefit the
sector. Indian Banking is in best of shape after many years, the capex cycle likely to revive and
should support credit growth, the corporate NPA cycle is behind us and should improve going
forward aiding the sector. The massive increase in digital delivery of services compared to
pre-covid period likely to drive costs lower, which is a positive for the financial services space.
The low interest rates and increasing retail participation is another positive for capital market
linked businesses. The insurance sector is also set to benefit post pandemic as the increasing awareness likely to improve penetration.
Commenting on the new fund launch, Anand Laddha, Fund Manager, said, “Over last two decades
the banking and financial services sector has grown faster than the GDP. Despite this growth in the
past, the penetration of various banking and financial services in Indian economy is low. Which
means there is a scope for this sector to continue to grow. Banking and financial services put
together account for one fourth of India’s total market capitalization. It offers a well-diversified investment opportunity and hence we are launching this fund.”(UNI)