DSP Mutual Fund has launched the DSP Banking & Financial Services Fund (DSP BFSF), an open-ended scheme offering investors a chance to invest in long-term structural opportunities in the banking and financial services sector. The sector includes major areas like NBFCs, housing finance companies, life insurance, non-life insurance, AMCs, exchanges, and depositories, which have grown at a faster rate than India’s nominal GDP in the last 15 years.
The DSP BFSF follows a stock-specific approach that favors business fundamentals over market outlook and has the flexibility for global investments. The asset allocation of the scheme is between a minimum 80% to 100% in equity and equity-related securities of companies in the BFSI sector, up to 20% in equity and equity-related securities of other companies, up to 20% in debt and money market instruments, and up to 10% in units issued by REITs and InvITs.
The New Fund Offer for DSP BFSF will open for subscription on November 20th, 2023, and will close on December 4th, 2023. Kalpen Parekh, MD & CEO, DSP Mutual Fund, said, “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.”
