Kaus­tubh Be­la­purkar

Dalal Street Investment Journal - - COVER STORY -

in fund’s port­fo­lios, the al­lo­ca­tion to­wards NBFCS stocks has also sig­nif­i­cantly shot up. In May 2014, in­vest­ment in banks con­sti­tuted 21.1 per cent of the over­all eq­uity port­fo­lios and NBFCS con­sti­tuted 5.5 per cent. This al­lo­ca­tion now stands at 22 per cent in banks and 7.8 per cent NBFCS as of May 2017. Man­ager’s top NBFC hold­ings in­clude stocks like

HDFC, Ba­jaj Fi­nance, Max Fi­nan­cial Ser­vices, Ba­jaj Fin­serv and Cho­la­man­dalam In­vest­ment and Fi­nance.

How much money have NBFCS at­tracted in the past one year as com­pared to banks (both pri­vate and PSBS)?

Over the last year, man­agers have been in­creas­ingly in­vest­ing in fi­nan­cial stocks. While bank­ing stocks have been wit­ness­ing large buy­ing, there has been ever in­creas­ing fo­cus to­wards NBFC stocks, es­pe­cially in the hous­ing fi­nance space. The ag­gre­gate in­vest­ments in banks has gone up from ₹89,000 crore to ₹144,000 crore. At the same time, man­ager in­vest­ments in NBFC stocks have gone up from ₹28,000 crore to ₹51,000 crore.

Is there any the­matic mu­tual fund scheme that in­vests pri­mar­ily in NBFC stocks?

In­vestors who are look­ing to take NBFC ex­po­sure can look at in­vest­ing in bank­ing and fi­nan­cial ser­vices funds. While there is a larger al­lo­ca­tion in these funds to­wards bank­ing stocks, many funds also take a size­able NBFC ex­po­sure in these funds, with the typ­i­cal ex­po­sure in NBFC stocks rang­ing from 10-40 per cent.

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