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Groww Mutual Fund is launching a new open-ended equity scheme, Groww Banking & Financial Services Fund, focusing on the banking and financial services sector. The New Fund Offer (NFO) opens on January 17, 2024, and closes on January 31, 2024. The minimum subscription amount is Rs 500.
The primary investment objective of the scheme is to generate consistent long-term returns by investing in equity and equity-related instruments of banking and financial services companies and other related sectors/companies. The fund aims to capitalize on the growth opportunities and growth potential of various sub-sectors within the BFSI sector, including (but not limited to) banks, NBFCs, insurance companies, asset management companies, capital market participants, fintech players etc. (This includes companies benefiting from or contributing to the growth of the banking and financial services sector).
Funds Allocation
| Instruments | Indicative Allocations (% of Total Assets) | Risk Profile |
| Equity and equity-related instruments of companies engaged in the financial services sector | 80% – 100% | Very High |
| Other equity & equity-related instruments | 0% – 20% | Very High |
| Debt and money market instruments | 0% – 20% | Low to Medium |
| Units of REITs & InvITs | 0% – 10% | Very High |
The scheme may utilise derivatives and hedging instruments as permitted by SEBI to reduce portfolio risk where the fund manager believes it is in the best interests of unit holders. The scheme will be exposed to derivatives of up to 50% of its net assets.
Fund Manager
Anupam Tiwari, Age: 47 years, Educational Qualification: CA, Experience: 19 years of extensive experience in the Mutual Fund Industry.
Benchmark
The performance of the scheme is measured against Groww Mutual Fund is launching a new open-ended equity scheme, Groww Banking & Financial Services Fund, focusing on the banking and financial services sector. (Total Return Index).
| Historic Returns – Banking and Financials Sectoral Funds | |||||||||
| Scheme Name | AuM (Cr) | 3M | 6M | YTD | 1Y | 2Y | 3Y | 5Y | 10Y |
| UTI Banking and Financial Services Fund – Direct Plan – Growth | 1,002.30 | 15% | 12% | 1% | 29% | 17% | 19% | 13% | 16% |
| SBI Banking & Financial Services Fund – Direct Plan – Growth | 4,827.61 | 16% | 13% | 2% | 30% | 17% | 18% | 17% | – |
| Baroda BNP Paribas Banking and Financial Services Fund – Direct Plan – Growth | 111.99 | 15% | 12% | -2% | 28% | 15% | 16% | 14% | 16% |
| ICICI Prudential Banking and Financial Services Fund – Direct Plan – Growth | 7,446.67 | 7% | 4% | -3% | 20% | 12% | 18% | 13% | 19% |
| Sundaram Financial Services Opportunities Fund – Direct Plan – Growth | 1,085.15 | 14% | 15% | -1% | 39% | 23% | 23% | 20% | 19% |
| ITI Banking and Financial Services Fund – Direct Plan – Growth | 257.24 | 10% | 5% | -1% | 22% | 14% | – | – | – |
| Mirae Asset Banking and Financial Services Fund – Direct Plan – Growth | 1,601.62 | 9% | 6% | -2% | 27% | 16% | 19% | – | – |
| HDFC Banking and Financial Services Fund – Direct Plan – Growth | 3,156.81 | 10% | 8% | -2% | 27% | 17% | – | – | – |
| Taurus Banking and Financial Services Fund – Direct Plan – Growth | 10.22 | 11% | 6% | -1% | 22% | 15% | 17% | 15% | 17% |
| Aditya Birla Sun Life Banking and Financial Services Fund – Direct Plan – Growth | 3,062.06 | 8% | 7% | -1% | 29% | 15% | 19% | 15% | 19% |
| Nippon India Banking & Financial Services Fund – Direct Plan – Growth | 5,192.47 | 9% | 9% | -3% | 28% | 18% | 25% | 15% | 18% |
| Tata Banking And Financial Services Fund – Direct Plan – Growth | 1,938.52 | 9% | 7% | -3% | 27% | 18% | 19% | 17% | – |
| Invesco India Financial Services Fund – Direct Plan – Growth | 667.42 | 13% | 16% | 0% | 36% | 19% | 20% | 18% | 20% |
| LIC MF Banking & Financial Services Fund – Direct Plan – Growth | 308.02 | 7% | 4% | -4% | 23% | 16% | 18% | 14% | – |
Who should invest in this scheme?
Long-Term Investors (5-10 years): Individuals who have a long-term investment horizon of 5 to 10 years, indicating a patient approach towards capital appreciation.
Preference for Equity and Equity-Related Instruments: Investors who are inclined towards equity and equity-related instruments and are specifically interested in companies within the financial services sector.
Focus on Financial Services Sector Growth: Those looking to benefit from the growth opportunities within the financial services sector, with a particular emphasis on companies engaged in banking and related areas.
Interest in Multiple BFSI Sub-Sectors: Investors seeking diversification within the broader financial services sector, allowing exposure across various sub-sectors like banking, insurance, and other related financial services.
Moderate to Higher Risk Appetite: Individuals with a slightly higher risk appetite, as investing in equities and related instruments can involve market volatility and fluctuations.
Existing Well-Diversified Portfolio: Investors who already have a well-diversified portfolio and are now looking to introduce a level of concentration in their investments, potentially aiming for out-sized returns within the financial services sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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