Bajaj Finserv announced the launch of its new mutual fund company, Bajaj Finserv Mutual Fund, on Tuesday. Bajaj Finserv Mutual Fund, a subsidiary of Bajaj Finserv, submitted the requisite papers with capital regulator Securities and Exchange Board of India (Sebi) in March to launch seven schemes in the equity, debt, and hybrid categories. The Investment Manager has been identified as Bajaj Finserv Asset Management Limited (BFAML).
To cater to the institutional segment and business treasuries, the company announced on Tuesday that it can now offer seven types of funds: liquid fund, money market fund, overnight fund, arbitrage fund, big and mid-cap fund, balanced advantage fund, and flexi cap fund.
To satisfy the needs of varied investor profiles ranging from retail and HNIs to institutions, Bajaj Finserv Mutual Fund will provide a complete collection of products across fixed income, hybrid, and equity categories. To begin, the company will offer a suite of fixed-income, liquid, overnight, and money market products to institutional investors and corporate treasuries.
Bajaj Finserv Mutual Fund will launch these products over the next 30 days, beginning with Fixed Income products. The operational model of Bajaj Finserv Mutual Fund is consistent with the company’s entrepreneurial culture, innovation, execution rigour, solid risk management, and long-term sustainable growth, according to a news release.
“We are committed to being a full-stack financial solutions provider to meet India’s growing needs and to developing deeper, long-term relationships with customers who have 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,” stated Sanjiv Bajaj, Chairman & Managing Director, Bajaj Finserv.
He went on to say that Bajaj Finserv Mutual Fund will use technology to empower teams, provide platforms for distributors, simplify investing, and create long-term sustainable value for customers. We believe that the asset management business sets Bajaj Finserv for an exciting new chapter of growth.
“Bajaj Finserv Mutual Fund’s strategy is built on innovation, win-win partnerships, and a future-ready business model through the use of data and tech platforms – the fundamental pillars on which the Bajaj Finserv is built,” said Ganesh Mohan, Chief Executive Officer of Bajaj Finserv Asset Management Company.
“Our primary differentiator is our investment philosophy.” We attempt to merge all sources of alpha, namely the Information edge, Quantitative edge as well as the Behavioural edge into a framework, which we call ‘INQUBE’. “Our team, which includes experts from across the industry as well as Bajaj Finserv professionals, enables us to benefit from deep industry know-how as well as Bajaj Finserv’s culture and DNA,” Mohan added.
As of March 2023, the asset under management (AUM) of the MF industry has increased more than fivefold during the previous ten years. According to AMFI data, AUM increased from Rs 7.01 lakh crore in March 2013 to Rs 39.42 lakh crore on March 31, 2023.
Individual investors increased their interests in equity-oriented schemes, including equities and balanced funds, by 13% in the fiscal year ending March 2023, while debt-oriented schemes increased by 0.16 percent.
According to AMFI data, liquid or money-market mutual funds increased by 30%, while exchange-traded funds (ETFs) and fund-of-funds (FoFs) increased by roughly 21%.