HDFC Mutual Fund has launched a new Fund Offer (NFO) to provide better financial services to retail investors. The new fund will improve investment in banking and financial services sector by market capitalization including banking, broking, asset management, wealth management, insurance, non-banking financial companies (NBFCs), and other companies. The fund will also focus on opportunities in new listings that include pre-IPO participation in lending, insurance, capital markets businesses and fintechs.
The NFO will run till June 25. It is an open ended fund so one can invest even after this. According to HDFC Mutual Fund, this is the right time for Banking & Financial Services Fund. At present, the GDP growth rate is down and there is a possibility of strong economic growth after FY 2022. In such a situation, it will help in improving the capital expenditure cycle.
HDFC Mutual Fund issued a statement saying, “Indian banking is in the best shape after many years, the capital expenditure cycle is likely to revive and should support credit growth.” During this, it was also said that the cost is likely to come down due to the increase in digital delivery of services compared to the pre-Covid period. This is a positive aspect for financial services.
Commenting on the new NFO, fund manager Anand Laddha said, “In the last two decades, the financial services sector has grown faster than the GDP growth rate. Despite this growth, the penetration of various banking and financial services in the Indian economy remains low. Despite this, the banking and financial services sector has given better results in the growth phase of the economy.
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