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Understanding Nippon India Banking Fund

-An open-ended equity scheme investing in Banking sector

We are sure you have heard about Sector funds. These are the ones which are focussed on a certain type of sector, endeavouring to leverage the growth in it.  Banking particularly is one such ever-green sector. In this ever-dynamic world, there will always be a need for banks, credit and the related services.

Why Banking sector? Well, it goes without saying that banking is the backbone of any country. It acts as the catalyst for economic recovery and also works in tandem with the macroeconomic factors such as inflation, account deficits etc. With a lot of initiatives like faster clearances of projects or long-term repayment cycle for large projects, it is expected that asset qualities will improve. This will in turn affect the sector positively. Also, the sector is expected to benefit significantly from the domestic recovery over the medium to long-term.

Let us look at Nippon India Mutual Fund’s banking sector fund in detail.

What is Nippon India Banking Fund?

This fund primarily invests in equity and equity related securities of companies in the Banking sector and the ones engaged in allied activities related to the Banking Sector. The aim is long term wealth creation and at the same time to generate relatively better risk-adjusted returns.

Investment Philosophy

Nippon India ​Banking Fund is a sector fund focussed on banking and financial service sectors. The fund aims for diversity across private banks, PSUs, NBFCs, Broking houses etc.

The primary investment objective of the Scheme is to seek to generate continuous returns by actively investing in equity and equity related securities of companies in the Banking Sector and companies engaged in allied activities related to Banking Sector. The AMC will have the discretion to completely or partially invest in any of the type of securities stated above with a view to maximize the returns or on defensive considerations. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends.

Features of the Fund

Fund at a Glance -
Minimum investment Rs 5000 and in multiples of Re. 1 thereafter
Additional Purchase Amount Rs 1000 and in multiples of Re. 1 thereafter
Inception Date 26-May-03
Lumpsum/Systematic Investment Plan (SIP) Both options available. For complete details please refer Scheme related documents,
Exit Load 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units. Nil thereafter

Investors can aim for the following 

  • Long-term growth
  • Risk-adjusted returns
  • Sector-specific growth potential of the banking sector

We understand the varied needs an investor might have and try our best to cater to them. Please call your financial advisor today!

Nippon India ​​​Banking Fund (An open-ended equity scheme investing in Banking sector)

This product is suitable for investors who are seeking*

  • Long term capital growth.
  • Investment in equity and equity related securities of companies in banking sector and companies engaged in allied activities related to banking sector

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

 

Risk factor & Disclaimer: Trading volumes and settlement periods may restrict liquidity in equity and debt investments. Investment in Debt is subject to price, credit, and interest rate risk. The NAV of the Scheme may be affected, inter alia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The NAV may also be subjected to risk associated with investment in derivatives, foreign securities or script lending as may be permissible by the Scheme Information Document. For further details, please refer Scheme Information Document (SID).

The views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.


Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

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