NFO Alert: Canara Robeco Mutual Fund launches banking and financial services fund

Canara Robeco Mutual Fund has announced the launch of Canara Robeco Banking and Financial Services Fund, an open-ended equity scheme investing in Banking and Financial Services Sector and aiming to generate wealth from financialisation of savings and credit growth in India.

The new fund offer or NFO of the scheme will open for subscription on February 27 and will close on March 13.

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Canara Robeco Banking and Financial Services Fund will aim to take advantage of the ongoing shift in borrowing behaviour, which is no longer event driven but is lifestyle driven. Early credit adoption and longer credit lifecycle as well as increased ease in access to credit have also raised prospects for the sector, according to a press release by the fund house.

“Banking and financial services are the engines of India’s economy. With this new fund offer, we are giving investors a direct opportunity to participate in that momentum,” said Rajnish Narula, Managing Director and Chief Executive Officer, Canara Robeco Asset Management. “This launch reflects our focus on creating investment solutions that help investors in long term wealth creation and build financial futures.”

The scheme will allocate at least 80% of the total assets towards equity & equity related instruments of entities engaged in banking and financial services sector and the rest in other equity and equity related instruments, debt, money market instruments and InvITs.

“Canara Robeco Banking and Financial Services Fund aims to create a portfolio with an emphasis on growth and value/profit pool migration. It intends to have an optimal balance of steady compounding business as well as growth accelerators / value migration plays within the overall financial sector.” said Shridatta Bhandwaldar, Chief Investment Officer – Equities at Canara Robeco Asset Management. “We believe the fund may provide an opportunity to investors to take advantage of growth potential in the Banking and Financial Services Sector.” he added.

The scheme is suitable for investors looking to participate in India’s financialisation and credit growth story through focused exposure to the banking and financial services sector. Investors should also understand the sectoral concentration risk and equity market volatility.

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“The Banking and Financial Services Sector has a humungous contribution to the growth of the Indian economy. Canara Robeco Banking and Financial Services Fund expands our thematic/sectoral fund offering, adding to the options we provide to investors. Investment in this fund could assist investors to participate in the India growth story and encourage wealth creation for them, in the long-run”, said Gaurav Goyal, Head - Sales and Marketing, Canara Robeco Asset Management.

Canara Robeco Banking and Financial Services Fund will be benchmarked against Nifty Financial Services Index (Total Return Index). Minimum investment during the New Fund Offer period will be Rs 5,000 and in multiples of Re 1 thereof. Shridatta Bhandwaldar and Amit Kadam will manage the fund.

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