Credit growth remains healthy and asset quality broadly benign, but valuations and earnings trajectories vary sharply across lenders. What is your core investment thesis for the BFSI sector over the next two to three years, and what could derail it?

Headline asset quality is strong, but concerns remain around microfinance, unsecured consumer loans and certain small-ticket lending segments. Are credit costs close to a cyclical bottom, and where do you see the greatest risk of negative surprises?

Banks account for about 47% of the DSP Banking & Financial Services Fund, while finance companies, insurance, capital-market businesses and fintech make up a significant portion of the remainder. Is this diversification intended to reduce dependence on the banking and interest-rate cycle?

ICICI Bank and Axis Bank are the fund’s two largest holdings, while HDFC Bank and Kotak Mahindra Bank have comparatively smaller weights. What differentiates your conviction across large private banks — deposit growth, return on assets, credit costs, management execution or valuation?

The portfolio also owns PSU banks, small finance banks and regional lenders. What must a smaller or state-owned bank demonstrate before it becomes investable, and how do you price governance, liquidity and concentration risks?

Cholamandalam Finance, Shriram Finance and Bajaj Finance are among the fund’s major NBFC positions. With banks competing aggressively for retail borrowers, where do NBFCs still possess a structural advantage, and what warning signs would make you reduce exposure?

How are you playing the wealth management and capital market growth cycle in your fund? What are your views as far as valuations are concerned in the wealth management and brokerage stocks?