SBI Mutual Fund today announced the launch of SBI Banking & Financial Services Fund, an open-ended sector fund that will invest in the equity and equity related securities of the companies from the banking and financial services sector.

The fund would adopt a bottom up stock selection process, and proposes to invest at least 80% of the portfolio in companies cutting across market capitalization in Banking & Financial sector. The NFO period of SBI Banking & Financial Services Fund is Feb. 11, 2015 to Feb. 24, 2015.

Dinesh Kumar Khara, MD & CEO, SBI Mutual Fund said, "Banking & Financial Services sector are fundamental drivers of economic growth and development in a country. The companies in these sector help individuals to save invest and build assets at lower intermediation costs and guard against uncertainty while helping businesses start up, expand and compete in local and international markets. In effect, the health of the economy is a mirror reflection of the banking & financial services sector in the country."
 
"The financial inclusion initiatives, as well as the steps taken by the finance ministry to adhere to Basel III norms, PM's vision to make India a manufacturing hub will contribute immensely to the growth of the banking and financial services sector, which forms the backbone of a growing economy," Khara said.
 
Navneet Munot, CIO, SBI Mutual Fund said, "SBI Banking & Financial Services Fund is uniquely positioned to take advantage of the possible further strengthening of India’s economy. Low Banking penetration, especially among the rural poor, who are largely excluded from the banking services, low Mortgage penetration, compared to other countries including emerging economies as also the emergence of NBFCs and insurance companies looking to tap huge unmet needs for life, non-life and other retail financial products, make a sound investment proposition."