Banking, financial services MEs see 37 pc surge in AUM to ₹48,000 cr in May
The surge in assets is backed by the strong performance of the segment. Industry data showed that these funds have delivered returns ranging from 22 to 30 per cent over the past year, highlighting the sector's robust fundamentals and growing appeal.
According to the industry data, there are currently 22 banking and financial services mutual funds in the Indian market, managing a combined assets under management of ₹ 48,000 crore in May 2025 against about ₹ 34,971 crore in May 2024.
The sharp rise suggests growing investor confidence in the long-term potential of the BFSI sector.
The BFSI sector, which holds the distinction of being the largest by market capitalisation in India's listed space, has remained resilient amid recent market volatility. BSE financial services index has gained nearly 14 per cent in the first three months of the current financial year alone, while BSE Bankex rose 10 per cent during the period under review.
Moreover, the BFSI space is likely to expand further with unlisted players in insurance, fintech, wealth management, and digital lending expected to access public markets. This trend will further broaden the investment landscape within the sector and encourage wider market participation.
"India's BFSI sector is no longer just about traditional banking it's a gateway to participate in the country's digital financial revolution.
"With the formalisation of the economy, rising retail participation, and a strong pipeline of quality players, this space offers long-term structural potential. For investors looking to build wealth over time, a dedicated BFSI fund with an actively managed, fresh portfolio can be a smart and timely allocation," Alpa Shah, a wealth manager, said.
In line with this growing momentum, Mahindra Manulife Mutual Fund recently launched the Mahindra Manulife Banking and Financial Services Fund on June 27. The new fund offer is open until July 11 and aims to provide investors with an opportunity to participate in the sector's growth story through a portfolio aligned with current market dynamics.
For investors seeking targeted exposure to India's financial transformation, a measured allocation to such funds with a minimum investment horizon of 3 to 5 years can be a prudent move, fund managers suggested.
This article was generated from an automated news agency feed without modifications to text.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
26 minutes ago
- Indian Express
Only 8.25% Indian graduates hold jobs that match their qualifications: Report
Only 8.25% of Indian graduates are employed in jobs that align with their qualifications, while over 50% are engaged in lower-skilled roles, reveals the latest report by the Institute for Competitiveness, the Indian affiliate of the Institute for Strategy and Competitiveness at Harvard Business School. The Periodic Labour Force Survey (PLFS) report finds that the Indian job market is experiencing a distortion where nearly 50% of graduates are employed in roles like clerks, machine operators, and sales workers (Skill Level 2), triggering alarm bells for policymakers and economists. These jobs are classified under the National Classification of Occupations (NCO), which assigns skill levels (1 to 4) to job categories. Ideally, those with a higher educational skill level should hold jobs that match or exceed that level. Overqualified and underutilised A worrying trend emerges when looking at overqualification. For high-skill (Skill Level 4) jobs: — 63.26% of workers hold educational qualifications that match. — But 28.12% are working in lower-skill jobs (Skill Levels 4–8), like clerks or machine operators. — Another 38.23% of those doing Skill Level 4 jobs have graduate-level education, suggesting oversupply of degrees without demand-aligned jobs. A similar trend persists at Skill Level 3. Only 8.25% of those with Level 3 education are in equivalent jobs, while over 50% of graduates are working in lower-level clerical and retail roles. This not only affects individual career satisfaction but indicates massive inefficiency in utilising India's educated manpower. Underqualification: The other side of the mismatch In Skill Level 2 jobs, 8.56% of workers lack the requisite formal education. This could be due to informal skill acquisition, experience-based progression, or vocational training. This is where Technical and Vocational Education and Training (TVET) becomes critical. TVET enables underqualified individuals to bridge formal gaps, but the infrastructure and accessibility of such programs remain inadequate. Which states are most affected? According to the report, states with large young populations like Uttar Pradesh, Bihar, Madhya Pradesh, and West Bengal face the most pressing challenges in addressing this mismatch. Without targeted intervention, these populous states risk: –Large-scale underemployment –Brain drain to urban areas or abroad –Skill redundancy in local economies –Missed industrialisation opportunities Here's an overview of skill 1 workforce share: Top and bottom 5 states While states like Goa and Kerala have fewer workers at Skill 1 level, states such as Bihar and Meghalaya continue to have over 60% of their workforce in this lowest education category, posing long-term challenges for skilled job creation. Can education keep up with workforce needs? India has made considerable strides in elementary education through schemes like Sarva Shiksha Abhiyan, Midday Meals, and NIPUN Bharat, reflected in near 100% Gross Enrolment Ratio (GER) at primary levels. But the transition to higher education remains uneven. While states like West Bengal (93.38%), Kerala (89.45%), and Jharkhand (87.88%) show high improvements in female GER, Lakshadweep saw a 90% decline over the decade, revealing geographic disparities. Only 2.17% of India's population has educational qualifications at Skill Level 4. At the state level, Chandigarh leads with 11.21%, more than twice the second-highest, Uttarakhand (4.99%). Top States by Skill Level 4 Workforce (based on 2023 data from the report) In contrast, states like Bihar (0.45%), Jharkhand (0.70%), and Odisha (0.87%) lag behind, risking exclusion from high-skill job markets unless significant educational reforms are implemented. How big is the economic impact of upskilling? The report shows that transitioning from intermediate to advanced skill levels could raise wages by 149%, drastically boosting both individual prosperity and GDP. However, this demands systemic investment. India needs to bridge an Rs 88,000 crore funding gap in higher education and increase education spending from 3.06% to 4.89% of the total budget. What is the way forward? To address the pressing skill mismatch, the report suggests four key interventions: –Granular Skill Data Collection – for more responsive policies. –Regular Skill Gap Analysis – led by Sector Skill Councils and State Skill Missions. –Update NCO Codes – to keep pace with emerging occupations. –Integration with PLFS – to include 4-digit NCO levels for better mapping. Is India prepared for its demographic deadline? India's demographic dividend, with 650 million people under 25 according to UNFP 2023 data, won't last forever. By 2046, the elderly population will surpass those aged 0–15, turning the current opportunity into a potential burden. To be workforce-ready by 2047, India needs: –An education system aligned with industry needs –TVET reforms to address underqualification –State-specific interventions in high-population regions –Gender-focused higher education policies Failing this, a majority of Indian workers, nearly 9 out of 10, as per the Skills for the Future report, may remain trapped in low-competency jobs, unable to fully contribute to India's economic ambitions.
&w=3840&q=100)
Business Standard
32 minutes ago
- Business Standard
Steamhouse India files confidential IPO papers to raise up to ₹700 cr
Industrial steam and gas supplier Steamhouse India has filed for an initial public offering (IPO) through a confidential pre-filing route, with an aim to raise between Rs 500 crore and Rs 700 crore, industry sources familiar with the development said. In a public announcement on Wednesday, Surat-based Steamhouse India said it has submitted "the pre-filed draft red herring prospectus with Sebi and the stock relation to the proposed initial public offering of its equity shares on the main board of the stock exchanges". While the exact issue size has not been officially disclosed, industry sources estimated that the IPO could be in the range of Rs 500 crore to Rs 700 crore. Built on the industrial legacy of Sanjoo group, the company was founded in 2014 and is headquartered in Surat. Steamhouse India serves over 167 clients across the country. The company has expansions underway at Pirana, Ahmedabad; Dahej SEZ; Vapi Phase 3; Ankleshwar Phase 3; Panoli Phase 2; Jhagadia; Nandesari Phase 2. It also plans to expand operations in Andhra Pradesh, Telangana, Maharashtra, Himachal Pradesh, Madhya Pradesh, Rajasthan, Uttar Pradesh and Haryana. As per the company's FY24 annual report, its total revenue was Rs 291.71 crore and profit stood at Rs 25.97 crore. The company has opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the draft red herring prospectus (DRHP) until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans. In recent months, logistics service provider Shadowfax Technologies, Gaja Alternative Asset Management, commerce enablement platform Shiprocket, Tata Capital, edtech unicorn PhysicsWallah and Imagine Marketing, the parent company of wearables brand boAt, also chose confidential filings. In 2024, food delivery giant Swiggy and retail chain Vishal Mega Mart floated their IPOs following similar filings. Market experts note that the confidential pre-filing route offers companies greater flexibility and reduces the pressure to go public quickly. Unlike the traditional route, which requires companies to launch their IPOs within 12 months of receiving Sebi's approval, the pre-filing route extends this window to 18 months from the receipt of final comments. Additionally, firms can modify the primary issue size by up to 50 per cent until the updated DRHP stage.
&w=3840&q=100)
Business Standard
34 minutes ago
- Business Standard
Office space demand from GCCs up 24% at 31.8 mn sq ft in FY25: Vestian
GCCs accounted for 42 per cent of the pan-India absorption in 2024-25, registering a marginal increase from 41 per cent a year earlier Press Trust of India New Delhi Leasing of office spaces to set up Global Capability Centres (GCCs) increased by 24 per cent last fiscal to 31.8 million square feet across seven major cities, according to a report. Data from real estate consultant Vestian showed that the leasing of office space to establish GCCs stood at 31.8 million (318 lakh) square feet in 2024-25 as against 25.6 million (256 lakh) square feet in the preceding year. "Over the past couple of years, GCCs have been the primary growth driver of India's office market. This growth has been fueled by cost optimization strategies, a skilled talent pool, rapid infrastructure development, favourable government policies, ease of doing business, and a supportive business environment," Vestian said in a statement on Wednesday. As per the Vestian's report, GCCs accounted for 42 per cent of the pan-India absorption in 2024-25, registering a marginal increase from 41 per cent a year earlier. Shrinivas Rao, CEO of Vestian said, "GCCs contribute significantly to the office market in India, accounting for over 40 per cent of the absorption recorded in the past two years." This share is expected to grow even further, fuelled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, Healthcare & Lifesciences, Engineering & Manufacturing, and Consulting Services, he added. "India continues to offer a compelling value proposition through its skilled talent base, operational scalability, and robust ecosystem," Rao said. Among cities, the leasing of office space for establishing GCCs stood maximum in Bengaluru at 12.43 million square feet last fiscal as against 8.34 million square feet in the preceding year. In Mumbai, the absorption of office spaces by GCCs jumped to 3.68 million square feet in 2024-25 from 1.36 million square feet in the preceding year. Real estate major DLF Ltd, Embassy Group, Prestige Group, RMZ Group, Tata Realty & Infrastructure Ltd and three office assets-backed REITs -- Mindspace Business Parks REIT, Brookfield India Real Estate Trust and Embassy Office Parks REIT--are the major players in Indian office market. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
