DSP Banking & Financial Services Fund
An open ended equity scheme investing in banking and financial services sector.
Why Consider DSP Banking & Financial Services Fund?
Proven performance
The Nifty Financial Services TRI delivered 17.6% CAGR since Jan 2004, beating the 14% CAGR from Nifty 50 TRI1.
Diversification beyond banks
You'll also gain access to the new age additions to the Banking, Financial Services and Insurance (BFSI) mix, such as Payment processors, Insurance and Stock Brokers, Wealth Management, Digital Infrastructure, Mutual funds, Loan Direct Sales Agents (DSAs).
Improving fundamentals
The banking non-performing assets (NPAs) are currently at an all-time low3, and robust credit growth has resulted in improved balance sheets. Thus providing you an opportunity to build your investment on a solid foundation.
Global exposure
Your portfolio could get quality exposure to fundamentally sound international BFSI businesses which currently maybe unavailable in India.
Poised for a potential comeback
The Nifty Financial Services TRI has been underperforming the Nifty 50 TRI since September 2019, with an annualized difference of 3.9%2. This trend likely indicates a potential for a turnaround.
Where exactly does it invest?
DSP Banking & Financial Services Fund invests in domestic and overseas banking and financial services companies. This fund aims to use a stock specific and high active share approach.
- Private & public sector banks
- NBFCs
- Stockbrokers
- Insurance
- FinTech platforms
- Global investments4
Who should invest?
If you want to participate in the growth story of Indian BFSI companies and other global financials
If you can stay invested for 5+ years
If you are okay with stretches of underperformance when the sector is out of favour
If you have a high risk appetite and are prepared to face short-term fluctuations in the long-term
Know this before you invest
DSP Banking & Financial Services Fund provides exposure only to the Financial Services sector, leading to concentration risk.
This fund can have higher volatility & drawdowns as compared to diversified equity funds
This fund can underperform diversified equity funds in the short-term
What do you need to invest?
You need a folio with DSP Mutual Fund to invest in the Scheme.
Frequently asked questions
What is the taxation structure?
This fund follows Equity Taxation.
Can I do both SIP and lump-sum investment in DSP Banking & Financial Services Fund?
Yes, you can do both an SIP and lumpsum investment in this fund.
Who are the fund managers of the fund?
Mr. Dhaval Gada and Mr. Jay Kothari (for overseas investments) are the fund managers of this Scheme.
Disclaimers
1, 2 Source: Internal. Index Values from MFI Explorer. Data for the period 01 Jan 2004 to 30 Sep 2023. These figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index.
3 Source: RBI, Kotak Securities, Morgan Stanley, Internal. Data as of 31 Mar 2023. NPA is considered only for banks.
4 For further details, refer Scheme Information Document and Key Information Memorandum of the scheme.
During the NFO period, you can invest as low as Rs. 100/- and in multiples of Re.1/-. Note that unit allotment (if you invest during the NFO period) units will be issued at a premium approximately equal to the difference between face value and Allotment Price during the NFO and at NAV based prices on an on-going basis
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments.
There is no assurance of any returns/capital protection/capital guarantee to the investors in above mentioned Schemes.
The investment approach / framework/ strategy / portfolio / other data mentioned herein are dated and proposed to be followed by the scheme and the same may change in future depending on market conditions and other factors.
The sector(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s).
For scheme specific risk factors, asset allocation details, load structure, investment objective and more details, please read the Scheme Information Document and Key Information Memorandum of the scheme available at the Investor Service Centers of the AMC and also available on www.dspim.com.
| Scheme Name and Type | Product Suitability | Scheme Riskometer | Benchmark^ Riskometer |
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DSP Banking & Financial Services Fund: An open ended equity scheme investing in banking and financial services sector. |
This scheme is suitable for investors who are seeking*
* Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them. |
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^Benchmark: Nifty Financial Services TRI |
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The product labelling assigned during the New Fund Offer (‘NFO’) is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made
For scheme information document, click here.
For product presentation, click here.