NBFC Companies operate in a very competitive environment but offer alternate lending opportunities, (vis-à-vis banks), particularly to Small & Medium Enterprises (SMEs) and Individuals.

While the cost of funds is typically higher for these companies ( on account of restrictions on raising deposits from public), their nimbleness in meeting the customer requirements faster through digitalisation etc., gives them a leeway in carving out a niche for themselves in the overall Banking, Financial Services and Insurance (BFSI) sector in India, particularly in the areas such as Personal Finance, Financing for SMEs, Automobile Finance etc.

Note: Being a thematic smallcase, this smallcase is likely to have fewer stocks/ETFs. Suggested (not mandatory - completely discretionary in your hands) amount of investment is of the order of Rs. 1.00 Lakh. It can be higher or lower based on individual's investible surplus, risk appetite , risk capacity, risk profile, asset allocation framework etc. This is a research recommendation in that sense. Conditions apply.