"Mahindra Manulife Banking & Financial Services Fund

"Mahindra Manulife Banking & Financial Services Fund: Tap Into India’s Financial Revolution – NFO Now Open!"

Introduction

India's financial landscape is undergoing a seismic transformation driven by digital innovation, rising incomes, and policy reforms. At the heart of this revolution lies the Banking and Financial Services (BFSI) sector, which is poised to be a significant wealth creator in the coming decade. Mahindra Manulife Investment Management has launched a timely opportunity for investors to capitalize on this trend through the Mahindra Manulife Banking & Financial Services Fund, an open-ended equity scheme now available through a New Fund Offer (NFO) until July 11, 2025.

This blog explores the fund’s investment rationale, the evolving BFSI ecosystem, and why this sector is a must-watch for long-term investors.

Content Outline

1. Evolution of India’s BFSI Sector

India’s BFSI journey began in 1935 with the formation of the Reserve Bank of India. Since then, milestones such as the launch of UTI, formation of SEBI, insurance reforms, and the revolutionary JAM Trinity (Jan Dhan, Aadhaar, Mobile) have accelerated financial inclusion and digitization.

🔹 Credit on UPI, Account Aggregators, and Insolvency Codes are examples of recent innovations redefining the customer experience across loans, investments, and savings.

2. Structural Tailwinds Supporting BFSI Growth

• Rising Per Capita Incomes: India’s GDP per capita has consistently grown, increasing demand for financial services.

• Shift from Physical to Financial Savings: There’s a gradual movement from gold and real estate to mutual funds, insurance, and deposits.

• Expanding Customer Base: Over 555 million Jan Dhan accounts and 1.16 billion mobile subscribers provide massive distribution reach.

📊 UPI transactions now form 71% of India’s GDP, up from just 1% in FY18.

3. BFSI: Driving Corporate India’s Profit Engine

• BFSI contributes a rising share of India Inc.’s profitability – from 16% in FY00 to over 40% in FY25.

• Robust players in private and public sector banks, NBFCs, fintech's, and insurance now form nearly 38% of the Nifty 50 index.

This breadth and depth across capital markets, lending, insurance, and tech-led innovation reflect the sector’s dominance in wealth creation.

4. Key Growth Segments in BFSI

🏦 Banking:

• Retail credit penetration remains low.

• Only 20% of India’s 814 million credit-eligible adults use credit.

• Room for exponential growth in credit cards, housing loans, vehicle finance, and business lending.

💰 Mutual Funds:

• India’s MF AUM is only 13.1% of GDP, compared to the USA (131.7%) and Brazil (77.5%).

• With rising investor awareness and SIP adoption, the mutual fund industry has a long growth runway.

🛡️ Insurance:

• Life and non-life insurance remain underpenetrated.

• Rapidly expanding customer awareness and regulatory push make this a high-growth space.

5. Mahindra Manulife BFSI Fund – Investment Framework

✅ Investment Universe:

Banks, NBFCs, Asset Management Companies, Fintech's, Insurance, Broking, Wealth Management, and Depositories.

📊 Asset Allocation:

• 80-100% in BFSI sector equities

• Up to 20% in non-BFSI equities

• Limited exposure to debt and REITs/InvITs

🔍 Stock Selection Strategy (GCM Framework):

• Growth: Pricing power, new products, ESG factors

• Cash Flow: Margin analysis, capital structure

• Management: Governance, capital allocation

• Valuation: Value gaps and catalysts for rerating

6. Why Invest Now?

• Nifty Financial Services Index has outperformed the Nifty 50 over the last 20 years.

• 5-year CAGR: 24.42% for Nifty Financial Services vs. 22.29% for Nifty 50

• SIP Returns: Higher average and median XIRRs for the BFSI index

• Current Valuations Attractive: The Nifty Financial Services Index trades below historical average P/E and P/BV.

7. Scheme Details at a Glance

Parameter Details NFO Period June 27 – July 11, 2025 Benchmark Nifty Financial Services TRI Fund Managers Mr. Vishal Jajoo & Mr. Chetan Gindodia Minimum Investment₹1,000 Exit Load 0.5% (if exited within 3 months) Options Growth, IDCW (Payout/Reinvestment)

Call to Action

Ready to ride India’s BFSI boom?
The Mahindra Manulife Banking & Financial Services Fund provides investors with focused exposure to one of the most promising sectors in the Indian economy. Whether you’re a seasoned investor or starting your mutual fund journey, this NFO offers a compelling entry point.

📞 For more details or personalized investment guidance, contact:
📧 Email: diaafinancialservice@gmail.com
📞 whatsapp: 8866091113
🌐 Website: www.rupeetrends.in