Recognizing the fast growth of India’s financial sector and changing credit habits, Canara Robeco Mutual Fund has launched a new scheme called the Canara Robeco Banking and Financial Services Fund.
This is an open-ended equity mutual fund that will invest mainly in the banking and financial services sector.
According to the company, the increasing financialization of savings and rising credit growth in India are creating strong long-term opportunities in this sector.
The New Fund Offer (NFO) will open on February 27, 2026, and investors can subscribe until March 13, 2026.
NFO Dates and Investment Details
The NFO period is from February 27, 2026, to March 13, 2026.
Minimum investment during NFO: ₹5,000
Additional investment after that: Re. 1 and in multiples of Re. 1
The company says borrowing patterns in India are changing quickly. Earlier, loans were taken only for specific needs, but now credit has become part of daily lifestyle.
Easy loan access, digital banking, and longer credit cycles are creating new growth opportunities for banks and financial companies.
Investment Strategy and Benchmark
The scheme will invest at least 80% of its total assets in equity and equity-related instruments of banking and financial services companies.
The remaining portion may be invested in:
Other equities
Debt instruments
Money market instruments
InvITs
The benchmark index for this fund is the Nifty Financial Services Index (Total Return Index).
Management View and Fund Managers
According to Rajnish Narula, Managing Director and CEO of the AMC, banking and financial services form the backbone of India’s economy, and this fund gives investors a direct chance to benefit from this growth.
Sridatta Bhandwaldar, CIO – Equities, said the portfolio will balance both growth and value stocks.
Amit Kadam will manage the fund.
Suitability and Risk for Investors
This fund may suit investors who want to invest in India’s financial sector growth over the long term. However, since it is a sector-focused fund, it carries risks such as sector concentration and market volatility.
Company Background
Canara Robeco Mutual Fund started in 1987 as Canbank Mutual Fund. Later, it became Canara Robeco Mutual Fund after a joint venture between Canara Bank and ORIX Corporation Europe.
Overall, this new fund comes at a time when India’s banking and financial sector is expanding, making it an attractive option for investors.
