DSP Mutual Fund has unveiled its latest offering, the DSP Banking & Financial Services Fund (DSP BFSF), an open-ended scheme designed to provide investors with a gateway to the long-term structural opportunities within the banking and financial services domain. The fund extends its focus beyond traditional banks, encompassing key sectors such as NBFCs, Housing Finance Companies, Life Insurance, Non-Life Insurance, AMC, Exchanges & Depositories.
Riding the Growth Wave:
The Banking and Financial Services sector in India has showcased remarkable growth, consistently outperforming the broader Nifty 50 Index over 10-year periods. Despite a brief underperformance since September 2019, the sector’s potential for a reversal, coupled with attractive valuations and robust balance sheets, presents a compelling investment opportunity. The Nifty Financial Services TRI has demonstrated over 12% returns in 90% of times over a 7+ year timeframe.
Strategic Approach:
DSP BFSF adopts a stock-specific approach that prioritizes business fundamentals over market outlook, boasting a high active share compared to the benchmark. The fund also offers flexibility for global investments, allowing the Fund Manager to tap into fundamentally sound businesses internationally.
Asset Allocation:
Under normal circumstances, DSP BFSF maintains an asset allocation between 80% to 100% in equity and equity-related securities of companies in the Banking and Financial services sector. It further allocates up to 20% in equity and equity-related securities of other companies, up to 20% in debt and money market instruments, and up to 10% in units issued by REITs and InvITs.
Subscription Details:
The New Fund Offer for DSP BFSF opens for subscription on November 20th, 2023, and concludes on December 4th, 2023.
CEO’s Perspective:
Kalpen Parekh, MD & CEO of DSP Mutual Fund, expresses optimism about the venture, emphasizing the sector’s substantial profits, diverse business additions, and favorable valuations, making it an opportune time for investors. The launch aligns with the fund’s strategy of raising capital in sectors with enduring growth potential during periods of price consolidation or correction.
