The fund will also focus on opportunities in new listings including pre-IPO participation in lending, insurance, capital market businesses and fintechs.
HDFC Mutual Fund said this is the opportune time for banking and financial services fund with GDP growth bottoming out and robust economic growth likely in FY22 and beyond. "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 company said in a release
In the investment world, most talked about segment or sector is - BFSI ( Banking & Financial Services Industries). Let us understand, what is BFSI ?
Banking, financial services and insurance (BFSI) is an industry term for companies that provide a range of such financial products or services. This includes universal banks that provide a range of financial services or companies that operate in one or more of these financial sectors. BFSI comprises commercial banks, insurance companies, non-banking financial companies, cooperatives, pensions funds, mutual funds and other smaller financial entities. The Banking part of BFSI may include core banking, retail, private, corporate, investment and cards. Financial services may include stock-broking, payment gateways, mutual funds. Insurance covers both life insurance and general insurance.
How many Companies are there under BFSI segment ?
There are many BFSI sub-industries in India. It includes Banks, Financial Services, Insurance, Mutual Funds, Stock Brokers, Venture Capital / M& A Companies. There are many BFSI companies who are Small and Medium Scale, having a turnover of 250 to 5000 crore.
Since a large portion of BFSI companies are Small Scale Industries, there is a huge growth potential under the COVID unlock and fast growing Digital transactions in India. BFSI sector is majorly dominated by the Private Sector. More than 400 BFSI companies are BSE listed.
And many more are going to tap capital Market soon !
Who should invest in this HDFC Banking & Financial Services Fund ?
Everybody ! Yes, every body should open at least one SIP (Min Rs 1000/- pm) into this scheme. And for lump-sum allocation you should discuss your current investments and eligible Risk profile, before investing. Mind it, this is going to be the multi-bagger scheme in your portfolio, but the journey can be very risky and high in volatility. So the investment tenure should be longer than 3 years or so.
You can invest in this NFO, through any of the following three methods :
Call at 9307218766 or 0522-4101666 0r 0522-4101667 to get the online investment link in your E-mail or Mobile - for SIP or Lump-sum, as you wish
Click here to invest online through your web login.
Download our Mobile app 'FundConnect' and enter 9415410781 under distributors Number section. Once you reach to login page, use your mobile OTP to login and invest online (If you are reading this article on mobile just click here to download app)
Past performance of all Equity Funds being managed by HDFC Asset Management Company (as on 11th June 2021) :
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme. While all efforts have been taken to make the information of this NFO, as authentic as possible, please refer to the offer document and must check your risk appetite before investing. We will not be responsible for any loss to any person/entity caused by any short-coming, defect or inaccuracy inadvertently or otherwise crept in this blog from anywhere.