Birla Sun Life Mutual Fund today announced the launch of its open ended fund called Birla Sun Life Banking and Financial Services Fund.
The scheme seeks to generate long-term capital appreciation by investing in equity and equity related securities of companies engaged in banking and financial services. The fund will invest in banks as well as non-banking financial services companies, insurance companies, rating agencies, broking companies, microfinance companies, housing finance and wealth management companies, among others.
The new fund offer period opens on November 25, 2013 and closes on till December 9, 2013. The minimum amount is Rs. 5,000.
A. Balasubramanian, CEO, Birla Sun Life Asset Management Company said, “The Banking and NBFC space has witnessed a steady growth since the last decade. Over the years, the sector is seen as a proxy to the economy, and delivered higher than proportionate market returns. We believe that the sector has potential to deliver high performance over a business cycle, which is something investors can benefit from over the long term.”
As on October 31, 2013, CNX Finance has given compounded returns of 17.3% as against 12.9% given by Nifty. This effectively means it has outperformed Nifty by 34% for the said period, said the company.
The fund will be benchmarked against CNX Finance Index.
Currently there are 13 banking and financial services related funds (including ETFs) in the market.
