Bajaj Finserv MFs new savings fund: Here's what the fresh launch offers

Bajaj Finserv Asset Management Co. Ltd. has announced the launch of the Bajaj Finserv Equity Savings Fund, an open-ended scheme that aims to balance growth and stability through investments in equities, arbitrage, and debt. This new fund offer (NFO), which remains open until August 11, seeks to provide investors with moderate growth potential while aiming to keep volatility low.

"By combining growth-oriented equities, stable debt and low-risk arbitrage, it aims to deliver consistent returns with reduced volatility," stated Ganesh Mohan, Managing Director of Bajaj Finserv AMC. The fund's strategy is particularly appealing in uncertain times, offering a balanced approach to investing.

The fund is designed to qualify for equity-oriented taxation with an equity allocation of at least 65%, including arbitrage. This allocation allows it to potentially bridge the gap between low-yield fixed-income instruments and volatile equity products.

Nimesh Chandan, the fund house’s Chief Investment Officer, highlighted that "The equity portion will focus on large, stable companies, while debt investments will include high-quality securities and sovereign bonds. Arbitrage exposure will be used to hedge and take advantage of cash-futures spreads." The minimum application amount is set at ₹500, and the fund supports systematic investment and withdrawal plans. This flexibility makes it accessible to a wide range of investors.

In an unpredictable market environment marked by inflation, Bajaj Finserv's diversified strategy helps manage risk while capturing potential upside. "In an environment where inflation impacts fixed income and equity markets remain unpredictable, this diversified strategy helps manage risk while capturing upside potential," added Mohan.

Bajaj Finserv AMC, a subsidiary of Bajaj Finserv Ltd., continues to expand its offerings with this new fund aimed at providing consistent returns amidst market volatility. The fund's comprehensive approach ensures that investors can benefit from both growth and stability.