Mirae Asset launches Banking & Financial Services Fund

Mirae Asset Investment Managers India has launched an open-ended equity scheme, Banking & Financial Services Fund. The NFO will be open for subscription till December 4.

The fund will invest in equities of banks , asset management and insurance companies, broking companies, rating agencies, exchanges, wealth management companies, NBFCs, micro-finance companies and fintechs.

Eye high growth firms

The fund will aim to identify high growth companies which have high return ratios and possess sustainable competitive advantage.

Financial companies account for about 30 per cent of the market capitalisation of the top 250 companies.

Swarup Mohanty, CEO, Mirae Asset Investment Managers India, said over last 2-3 decades, the financial sector has transformed itself from just banks to other allied businesses such as NBFCs, insurance, AMCs and capital market players.

The government expects the Indian economy to grow to $5 trillion in the coming years and the banking, financial services & insurance sector can be the key engine to drive this growth.

“We believe that as economic sentiment improves post-pandemic, the sector will play a crucial role in India’s economic revival,” he said.

Neelesh Surana, CIO, Mirae Asset Investment Managers, said the sector offers structural growth opportunities with improving financialisaton, and increase in penetration levels in products like insurance.