NFO Alert: DSP Mutual Fund launches DSP Banking & Financial Services Fund; all you need to know

livemint.com:

DSP Mutual Fund announced the launch of the DSP Banking & Financial Services Fund. The scheme opened for public subscription on November 20, 2023, and will close on December 04, 2023. The scheme re-opens for continuous sale and repurchase within five days from the date of allotment.

This is anopen-ended equity scheme investing in the banking and financial services sector. This scheme is suitable for investors seeking

The main goal of the fund is to generate returns by investing in both domestic and international equity, as well as equity-related securities of companies operating in the banking and financial services sector.

“Companies in the BFSI sector have large profits compared to other sectors. The profit pool is also growing due to the addition of diverse businesses across insurance companies, mutual funds, wealth management firms, tech platforms supporting the industry, payments and fintech. We prefer to raise money in such sectors with long-lasting growth when their prices are falling or consolidating. Lenders also have leverage as raw material and hence go through cycles of volatility. In recent years, stocks in the BFSI space have corrected, thus increasing the margin of safety for an investor. We are happy to launch the NFO when valuations are reasonable," says Kalpen Parekh, MD & CEO, DSP Mutual Fund.

Investors can invest under the scheme with a minimum investment of ₹100 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Indicative allocations (% of total assets)

Minimum

Maximum

Equity and equity-related securities of companies engaged in the banking and financial services sector

80

100

Very