Kotak Banking & Financial Services Fund, an open-ended equity fund investing in Banking and Financial Services sectors has been introduced by Kotak Mahindra Asset Management Company Limited. The public subscription period for the scheme begins on February 6 and ends on February 20. , 2023. During the NFO period, investors can deposit minimum 5,000 and in multiples thereof 1 more to buy 0.01 for switch.
The investment objective of this actively managed Sectoral Fund is to generate long-term capital growth through a portfolio consisting primarily of equity and equity-related securities of companies involved in the banking and financial services industries. “Banks are an important part of the banking and financial services segment and are generally growing at 1.5 to 2.0 times the rate the economy is growing. Hence, the sustained growth momentum in the economy is likely to help the sector grow further,” Kotak Mahindra AMC said in a statement.
Shibani Sircar Kurian, Senior EVP, Fund Manager and Head-Equity Research, Kotak Mahindra Mutual Fund, said, “We are delighted to offer this fund to our clients. In India, given the under-penetration compared to the global average, the BFSI sector has a long way to go, be it in mutual funds, where only 7% of the Indian population has a fund folio, compared to 23% globally , or life insurance where premium ratio is only 3% of GDP compared to 10% of top 5 countries, non-life insurance penetration is less than 1% compared to 4% globally and 27 branches per The bank branching with only 15 branches per 1000 population is also among the developed countries. All of this offers potential for growth within the region.”
According to the AMC, the fund’s key advantages include diversification opportunities within the sector, such as investments in non-banks, insurance, broking, asset management and fintech, as well as investment opportunities across all market caps and sub-sectors. Banking and financial services sector. The fund manager will employ a Business, Management and Valuation (BMV) strategy to find firms with sound fundamentals as part of the primary investment criteria.
The Asset Manager for Kotak Mahindra Mutual Fund is Kotak Mahindra Asset Management Company Limited, a wholly owned subsidiary of Kotak Mahindra Bank Limited (KMF). As on December 31, 2022, the AMC reported to have 90 branches and approximately 46.9 lakh investor folios across various schemes. It also mentioned being active in 85 cities during this period.
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