NFO Alert! Canara Robeco Banking and Financial Services fund opens Feb 27 - Minimum Rs 5,000 investment | All you need to know

Canara Robeco Mutual Fund has launched the Canara Robeco Banking and Financial Services Fund, an open-ended equity scheme focused on the Banking and Financial Services sector, aiming to capitalise on savings and credit growth in India. The scheme’s new fund offer (NFO) will open for subscription on February 27 and close on March 13.

Canara Robeco Banking and Financial Services Fund aims to capitalise on the ongoing shift in borrowing behaviour, which is now lifestyle-driven rather than event-driven. According to the fund house, early credit adoption, longer credit lifecycles, and easier access to credit have boosted sector prospects.

Rajnish Narula, Managing Director and Chief Executive Officer of Canara Robeco Asset Management, said, "Banking and financial services are the engines of India’s economy. With this new fund offer, we are giving investors a direct opportunity to participate in that momentum. This launch reflects our focus on creating investment solutions that help investors in long term wealth creation and build financial futures."

The scheme will invest a minimum of 80 per cent of its total assets in equity and equity-related instruments of companies operating in the banking and financial services sector, with the remaining portion allocated to other equities, debt, money market instruments, and InvITs.

"Canara Robeco Banking and Financial Services Fund aims to create a portfolio with an emphasis on growth and value/profit pool migration. It intends to have an optimal balance of steady compounding business as well as growth accelerators / value migration plays within the overall financial sector," said Shridatta Bhandwaldar, Chief Investment Officer -- Equities at Canara Robeco Asset Management. "We believe the fund may provide an opportunity to investors to take advantage of growth potential in the Banking and Financial Services Sector."

The scheme is ideal for investors seeking to benefit from India’s financialisation and credit growth by gaining targeted exposure to the banking and financial services sector. Investors should be aware of sector concentration risks and equity market volatility.

“The Banking and Financial Services Sector has a humungous contribution to the growth of the Indian economy. Canara Robeco Banking and Financial Services Fund expands our thematic/sectoral fund offering, adding to the options we provide to investors. Investment in this fund could assist investors to participate in the India growth story and encourage wealth creation for them, in the long-run”, Gaurav Goyal, Head - Sales and Marketing, Canara Robeco Asset Management, said.

Canara Robeco Banking and Financial Services Fund will be benchmarked against Nifty Financial Services Index (Total Return Index). Minimum investment during the New Fund Offer period will be Rs 5,000 and in multiples of Re 1 thereof. Shridatta Bhandwaldar and Amit Kadam will manage the fund.

Canara Robeco Banking and Financial Services Fund will track the Nifty Financial Services Index (Total Return Index). The minimum investment during the New Fund Offer (NFO) is Rs 5,000, with additional investments in multiples of Re 1. The fund will be managed by Shridatta Bhandwaldar and Amit Kadam.