Finance is the only sector guaranteed to capitalise on all the major engines of economic growth, be it consumption, capex, government spending or export growth. This portfolio 

plays on 4 trends. 

• Reviving credit growth. Credit demand has picked up and has also broad-based to include demand from services, industry and private sector companies reviving capex plans. This should lead to a revival in both income & profit growth for mainstream banks.
• NBFCs are well poised to deliver superior growth with improved spreads. With the tailwinds to the economy returning, mainstream NBFCs engaged in retail credit, durables and vehicle loans, truck and logistics financing and MSME credit are on firm ground.
• Lower disruption as the RBI has been drawing strict boundary lines around non-bank and fintech players. It signals less disruption to banks and NBFCs from fintech players encroaching on their turf.
• The shift to financialisation of savings by the Indian saver is here to stay. With investors having experienced the liquidity and return potential of market-linked investments, they are unlikely to return to physical assets or FDs in a big way. The Jan Dhan Yojana has made great strides, helping create a huge addressable market at the bottom of the pyramid for microfinance firms, gold companies & retail financiers. It also creates a pool of customers for savings products.  

To reflect weights close to the model portfolio, we recommend investing at least Rs 1.2 lakh in this portfolio.