The NFO opens for subscription on February 11 and closes on
February 24.
SBI Mutual Fund today announced the
launch of its open ended sector fund called SBI Banking & Financial
Services Fund. As the name suggests, the fund aims to invest in companies from
the banking and financial services sector.
The fund would adopt a bottom up
stock selection process to invest at least 80% of the portfolio in companies
cutting across market capitalization in banking & financial sector, said a
press release issued by the fund house.
The NFO opens for subscription on February
11 and closes on February 24, 2015.
Dinesh Kumar Khara, MD & CEO, SBI Mutual Fund said, “Banking & financial services sector are fundamental drivers of economic growth and development in a country. The companies in these sector help individuals to save invest and build assets at lower intermediation costs and guard against uncertainty while helping businesses start up, expand and compete in local and international markets. In effect, the health of the economy is a mirror reflection of the banking & financial services sector in the country.”
“The financial inclusion initiatives, as well as the steps taken by the finance ministry to adhere to Basel III norms, PM’s vision to make India a manufacturing hub will contribute immensely to the growth of the banking and financial services sector, which forms the backbone of a growing economy,” added Dinesh.
Navneet Munot, CIO, SBI Mutual Fund said, “SBI Banking & Financial Services Fund is uniquely positioned to take advantage of the possible further strengthening of India’s economy. Low banking penetration, especially among the rural poor, who are largely excluded from the banking services, low mortgage penetration, compared to other countries including emerging economies as also the emergence of NBFCs and insurance companies looking to tap huge unmet needs for life, non-life and other retail financial products, make a sound investment proposition.”
Currently, there are 13 banking and financial services sector funds in the industry which collectively manage Rs. 6,180 crore. Value Research data shows that this category has delivered 77% absolute return over a one year period.