Mirae Asset Investment Managers introduced Mirae Asset Banking & Financial Services Fund, an open-ended equity investment scheme in the banking and financial services sector. The NFO for the fund is open for subscription and ends on December 4. The fund managers of the scheme are Harshad Borawake and Gaurav Kochar.
The portfolio of the funds will consist of equities of banks listed in India, the public sector banks, private banks, foreign banks, and regional rural banks. The fund will also consider investing in companies like Asset Management Companies (AMCs), life and non-life insurance companies, fintech, broking companies, rating agencies, exchanges, wealth management companies, NBFCs, and micro-finance companies. The main objective of funds is to identify the high growth companies which possess high return ratios and having a sustainable competitive advantage. The aim is to set up a portfolio of companies with strong growth that reflects the company’s most attractive investment ideas. The fund is highly flexible and invests across market capitalization.
Swarup Mohanty, the CEO, Mirae Asset Investment Managers India, said that the Banking and Financial Services sector is not only the largest but also the most diversified one in the Indian economy. The sector has transformed from banks to other allied businesses such as NBFCs, Insurance, AMCs, and capital market players from the last 2-3 decades. The government expects that the Indian economy will achieve the target of USD 5 trillion in the upcoming years and the Banking Financial Services & Insurance (BFSI) sector is the backbone of the Indian economy and which be the key drivers to growth. He said that one should look at BFSI as a long-term investment and not a cyclical play. The theme of improved financial services penetration, availability of credit, and the long-term goal of the government to improve the economy will also enhance the growth of banks and the financial services sector. The banking sector believes that economic sentiment improves post-pandemic, and the sector would play an important role in the growth of the Indian economy.
Neelesh Surana, CIO, Mirae Asset Investment Managers India Pvt, said that the company would continue to remain active in the banking and financial services sector. The modification to a well-organized economy, and the long-term shift towards financial assets, augur well for growth. The sector gives structural growth opportunities with improving financialization, a boost in penetration levels in products like insurance, etc.