Highlighting why investors should consider investing in the Financial Services Sector, Mr. Vishal Kapoor, CEO, Bandhan AMC said, “A significant portion of India’s economic growth is fueled by the financial services sector. Powerful enablers like increasing financial inclusion, growing digitization, and the relatively stronger balance sheet of banks and NBFCs provide visibility for strong earnings growth for this sector. It has been a key driver of returns for the capital market with the Financial Services Index growing18X since inception compared to 10X for the Nifty 500 Index. The Bandhan Financial Services Fund will go beyond the traditional Banking sector by diversifying further with investments in Capital Markets, NBFCs, Insurance, and Fintech as well, providing investors with an opportunity to benefit from India’s long-term growth story.”
Sumit Agrawal, Fund Manager for Bandhan Financial Services Fund added, “The financial services sector is agile in embracing new businesses and themes that could further enhance its growth prospects.With a whole host of sub-segments and a solid track record for wealth creation over the long term, the valuation of the Nifty Financial Services Index is currently at reasonable levels, a relatively attractive entry point for investors looking to benefit from the growth prospects of this diversified sector. The Bandhan Financial Services Fund has a bottom-up stock selection approach with flexible allocation across market cap segments, facilitating focus on growth-oriented companies that have proven competitive positioning, good management quality, and a robust earnings trajectory.”
The Bandhan Financial Services Fund will use a3-factor model for stock selection. The fund manager will prioritize the stock’s Earnings Trajectory, Management Quality, and Competitive Positioning, thereby focusing on both the quality and growth aspects of the portfolio. The fund’s portfolio construction would follow the flexi cap approach from a market cap allocation standpoint and will be actively managed.It will follow a growth style of management and look at medium to long-term growth opportunities.
