Bajaj Finserv on June 6, 2023, announced the launch of its mutual fund business with seven mutual funds across the fixed income, hybrid and equity categories.
Named Bajaj Finserv Mutual Fund, the asset management company (AMC) will roll out these products within the next 30 days starting with the fixed income products, Bajaj Finserv Asset Management Limited (AML) announced in a press statement.
Bajaj Finserv Mutual Fund had previously filed these seven schemes with the Securities and Exchange Board of India (Sebi). These seven schemes are namely, liquid fund, money market fund, overnight fund, arbitrage fund, large and mid-cap fund, balanced advantage fund and flexi cap fund.
Bajaj Finserv received the final registration from Sebi to commence its mutual fund operations under Bajaj Finserv Mutual Fund, with Bajaj Finserv Asset Management Limited (BFAML) as the investment manager, in March 2023.
Sanjiv Bajaj, chairman and managing director, Bajaj Finserv, said in a statement: “We are committed to being a full-stack financial solutions provider to meet India’s growing needs and building deeper, long-term relationships with customers who are already invested in us. The launch of asset management helps diversify our retail franchise and leverage Bajaj Finserv companies’ combined strength in financial services across a much larger customer base.”
Ganesh Mohan, chief executive officer, Bajaj Finserv Asset Management Company, said: “Our strategy is built on innovation, win-win partnerships and a future-ready business model through usage of data and tech platforms. We look to combine all sources of alpha, namely the Information edge, Quantitative edge as well as the Behavioural edge into a framework, which we call ‘INQUBE’.”
Bajaj Finserv Mutual Fund also highlighted the salient features of its seven upcoming schemes.
Bajaj Finserv Arbitrage Fund: This is an open-ended scheme investing in arbitrage opportunities. According to Bajaj Finserv Mutual Fund, this is suitable for investors who are seeking short-term income generation and income through arbitrage opportunities in the cash and derivatives segments of the equity market. This has been designated as a low risk product.
Bajaj Finserv Balanced Advantage Fund: This is an open-ended dynamic asset allocation fund. According to Bajaj Finserv Mutual Fund, this is suitable for investors who are seeking to generate income over the long term and dynamic asset allocation between equity and equity related Instruments including derivatives, and fixed income instruments. It has been designated as a high risk product.
Bajaj Finserv Flexi Cap Fund: This is an open ended equity scheme investing across large cap, mid cap, small cap stocks. According to Bajaj Finserv Mutual Fund, this is suitable for investors who are seeking to create wealth or capital appreciation over the long term, and invest in equity and equity related instruments across large cap, mid cap and small cap stocks. This has been benchmarked in the very risk category.
Bajaj Finserv Large and Mid Cap Fund: This is an open-ended equity scheme investing in both large cap and mid cap stocks. According to Bajaj Finserv Mutual Fund, this is suitable for investors who are seeking to create wealth over the long term, and primarily invest in open-ended equity schemes investing in both large- and mid-cap stocks. This has also been designated in the very high risk category.
Bajaj Finserv Liquid Fund: This is an open-ended liquid scheme with relatively low interest rate risk and moderate credit risk. According to Bajaj Finserv Mutual Fund, this is suitable for investors who are seeking regular income over the short term, and invest in money market and debt instruments, with maturity up to 91 days. This has been designated in the ‘low to moderate’ risk category.
Bajaj Finserv Money Market Fund: This is an open-ended debt scheme investing in money market instruments with relatively low interest rate risk and moderate credit risk. According to Bajaj Finserv Mutual Fund, this is suitable for investors who are seeking income over the short term, and invest in money market instruments that seeks to provide reasonable returns, commensurate with low risk while providing a high level of liquidity. This has been designated in the moderate risk category.
Bajaj Finserv Overnight Fund: This is an open-ended debt scheme investing in overnight securities with relatively low interest rate risk and relatively low credit risk. According to Bajaj Finserv Mutual Fund, this is suitable for investors who are seeking regular income over short term that may be in line with the overnight call rates, and invest in money market and debt instruments, with overnight maturity. This has been designated in the low risk category.
