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Kotak Mutual Fund has launched Kotak Banking & Financial Services Fund, an open-ended equity scheme investing in the banking and financial services sectors.
In a press release, the fund house said, “Banks are a significant part of the banking and financial services segment and are generally seen growing at 1.5 to 2.0 times the rate at which the economy grows. Hence, a continued growth momentum in the economy is likely to aid this sector going ahead.”
Shibani Sircar Kurian, Senior EVP, Fund Manager & Head -Equity Research at Kotak Mahindra Mutual Fund said, “In India , the BFSI sector has a long way to go considering the under penetration as compared to global averages, be it in mutual funds where only 7% of the Indian population has a fund folio compared to 23% globally, or life insurance where there is only 3% premium proportion to GDP vis a vis 10% of top 5 countries, non-life insurance penetration being less than 1% compared to 4% globally and also amongst bank branches with just 15 branches per 1000 population compared to 27 branches in developed countries. All of this offers a growth potential within the sector.”
