Chennai, Nov 25: DSP Mutual Fund has announced the launch of DSP Banking & Financial Services Fund (DSP BFSF), an open-ended scheme that offers investors an opportunity to partake in the long term structural opportunity in the banking and financial services space.
A press release said,”Apart from banks, the sector also encompasses major areas like NBFCs including Housing Finance Companies, Life Insurance, Non-Life Insurance, AMC, Exchanges & Depositories, which have all grown at a faster rate than the nominal GDP of India in the last 15 years. All these combined make up a profit opportunity of over $ 4 Trillion.”
āCompanies in the BFSI sector have large profits compared to other sectors. The profit pool is also growing due to the addition of diverse businesses across insurance companies, mutual funds, wealth management firms, tech platforms supporting the industry, payments and fintech. We prefer to raise money in such sectors with long lasting growth when their prices are falling or consolidating. Lenders also have leverage as raw material and hence go through cycles of volatility. In recent years, stocks in the BFSI space have corrected, thus increasing the margin of safety for an investor. We are happy to launch the NFO when valuations are reasonable,ā said Kalpen Parekh, MD & CEO, DSP Mutual Fund.