Canara Robeco MF launches Banking & Fin Services Fund: Who should invest?

Canara Robeco Banking & Financial Services Fund: Canara Robeco Mutual Fund has announced the launch of the Canara Robeco Banking & Financial Services Fund, an open-ended equity scheme investing in the banking and financial services sector. 

The New Fund Offer (NFO) for the scheme will open for subscription on Friday, February 27, 2026 and closes on Friday, March 13, 2026.  

According to the fund house, it aims to generate wealth from the financialisation of savings and credit growth in India. The fund will invest at least 80 per cent of the total assets towards equity and equity-related instruments of entities engaged in the banking and financial services sector. The remaining will be invested in other equity and equity-related instruments, debt, money market instruments and InvITs. 

 

The performance of the fund will be benchmarked against the Nifty Financial Services Index (Total Return Index).  

"Canara Robeco Banking and Financial Services Fund will aim to take advantage of the ongoing shift in borrowing behaviour, which is no longer event-driven but is lifestyle-driven. Early credit adoption and longer credit lifecycle, as well as increased ease in access to credit, have also raised prospects for the sector," it said in a statement. 

Rajnish Narula, managing director and chief executive officer, Canara Robeco Asset Management Company (AMC), said banking and financial services are the engines of India's economy, and the fund offers investors a direct opportunity to participate in that momentum.  

“This launch reflects our focus on creating investment solutions that help investors in long-term wealth creation and build financial futures,” he added.   

The minimum investment during the NFO period is ₹5,000, with additional investments in multiples of ₹1.  

The fund will be managed by Shridatta Bhandwaldar, chief investment officer for equities, and Amit Kadam, fund manager for equities. 

According to SID, an exit load of 1 per cent will be charged if more than 12 per cent of the allotted units are redeemed or switched out within 365 days from the date of allotment, while no exit load will apply on redemptions up to 12 per cent within 365 days or on any units redeemed after 365 days.

Canara Robeco Banking and Financial Services Fund: Who should invest?

According to Canara Robeco MF, the scheme is suitable for investors looking to participate in India's financialisation and credit growth story through focused exposure to the banking and financial services sector. Investors should also understand the sectoral concentration risk and equity market volatility.  

According to the riskometer, the principal investor in this scheme will be at very high risk.  

However, investors should consult their financial advisors if in doubt about whether the product is suitable for them.