NFO alert: Bajaj ETF, Baroda BNP Paribas Services Fund, Wealth Mid Cap Fund open for subscription

Mutual fund investors have three fresh New Fund Offers (NFOs) to consider this week, each targeting a different segment of the market. From passive banking exposure to India's services economy and mid-cap growth, the latest launches offer investors diverse ways to participate in the country's long-term growth story.

Three asset management companies have opened New Fund Offers (NFOs) this week, offering investors exposure to distinct investment themes—India's banking sector, the fast-growing services economy and mid-cap companies. While one fund follows a passive investment strategy, the other two are actively managed, giving investors multiple choices depending on their risk appetite and investment objectives.

Passive bet on India's largest banks

Bajaj Asset Management, formerly Bajaj Finserv Asset Management, has launched the Bajaj Finserv BSE Top 10 Banks ETF, an exchange-traded fund that tracks the BSE Top 10 Banks Total Return Index.

The NFO opened on July 13 and closes on July 15. The ETF invests in the 10 largest banks within the BSE 500 universe based on free-float market capitalisation. It has a minimum investment amount of ₹500, carries no entry or exit load, and will trade on stock exchanges after listing.

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The index is rebalanced every six months, with individual stock weights capped at 33% and the combined weight of the top three constituents capped at 63%, helping reduce concentration risk.

The ETF is aimed at investors seeking low-cost, passive exposure to India's banking sector without having to select individual bank stocks.

Baroda BNP Paribas Services Fund

Baroda BNP Paribas Mutual Fund has launched the Baroda BNP Paribas Services Fund, an open-ended thematic equity scheme that seeks to benefit from India's expanding services economy. The NFO opened on July 14 and will remain open until July 28, with units available at a face value of ₹10.

Unlike a single-sector fund, the scheme plans to invest across nearly 195 service-sector companies in the Nifty 500 universe. Its investment universe spans banking and financial services, information technology, healthcare, telecommunications, diversified retail, e-commerce and digital infrastructure.

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According to the fund house, the strategy is aligned with India's structural growth story, driven by digitalisation, rising incomes, financial inclusion and increasing consumer spending. The fund is designed for investors with an investment horizon of more than three years.

Mid-cap fund

The Wealth Company Mutual Fund has also entered the market with its Mid Cap Fund, whose NFO opens on July 15 and closes on July 29. The open-ended equity scheme will invest at least 65% of its assets in mid-cap companies and will be benchmarked against the Nifty Midcap 150 TRI.

The fund house says the scheme will focus on businesses with scalable models, sustainable competitive advantages, improving profitability and prudent capital allocation. It will use proprietary research frameworks to identify companies that could become future market leaders.

The launch is also significant because it marks The Wealth Company's 11th mutual fund in just 11 months, underscoring the AMC's rapid expansion.

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Which investors should consider these NFOs?

The three launches cater to different investment needs. Investors looking for a simple, low-cost way to participate in India's banking sector may find the Bajaj ETF suitable. Those seeking to benefit from India's services-led economic transformation may consider the Baroda BNP Paribas Services Fund, while investors with a higher risk appetite and a long-term horizon may evaluate The Wealth Company Mid Cap Fund for exposure to emerging businesses.

As with any NFO, investors should not subscribe solely because a fund is new. Instead, they should evaluate whether the investment strategy complements their existing portfolio, aligns with their financial goals and matches their risk tolerance before investing.

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