The Hindu Business Line : Lotus India AMC launches banking fund

“The investment objective of the scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities of companies engaged in the business of banking and financial services,” stated a company release issued here.

Allocation

The new fund offer priced at Rs 10 a unit opened for initial purchase from May 19 and closes on June 17.

The scheme will invest 65-100 per cent in equity and equity-related instruments of the constituents of National Stock Exchange’s CNX Bank Index.

Rest of the 0-35 per cent allocation will be either in equity and equity-related instruments of banking and financial services companies other than the constituents of CNX Bank Index or in debt and money market instruments.

“From a banking and financial services perspective, India is an under-penetrated market. This offers tremendous growth potential for this sector,” said Mr Ajay Bagga, Chief Executive Officer, Lotus India AMC.

Credit crisis

“The Indian banking and financial services sector has largely been unaffected by the global credit crisis due to its strong fundamentals. With increased operating and capital efficiency, this sector is poised to offer significant opportunities for long term wealth creation for investors,” said Mr Bagga.

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