Mirae Asset Banking and Financial Services Fund is an open-ended equity scheme investing in Banking & Financial Services Sector. The NFO opens for subscription today, 25th November 2020 and closes on 4th December 2020. The Scheme re-opens for continuous sale and repurchase from 14th December 2020. The Fund will be managed by Mr. Harshad Borawake and Mr. Gaurav Kochar.
Key Highlights of the scheme
The fund may invest in the equities of banks listed in India, Public Sector Banks, Private Banks, Foreign Banks and Regional Rural Banks.
The fund may also invest in Asset Management Companies (AMCs), Life and Non-life Insurance Companies, Broking Companies, Rating Agencies, Exchanges, Wealth Management Companies, Non-Banking Financial Company (NBFCs), Microfinance Companies and Fintechs.
The fund will aim to identify high growth companies which have high return ratios and possess sustainable competitive advantage. The aim is to build a portfolio of strong growth companies reflecting our most attractive investment ideas. The fund will have flexibility to invest across market capitalization.
Financial companies account for approximately 30% of the market capitalisation of the top 250 companies.
Despite a high saving rate of 19% in India as against a 9% World average, India remains an underbanked economy with a strong potential for growth. The Indian financial sector has low penetration across categories AMC, Life Insurance, Capital Markets all highlighting the huge growth potential in these categories.
Indian banks' capital position has been strengthened over the last few years, with Tier 1 capital at 13% in FY20 against the regulatory