Mutual Fund News : Bajaj Finserv Enters the Mutual Fund Business

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Bajaj Finserv a well-known Non-banking financial services company (NBFC) on Tuesday, June 06, 2023 announced the launch of its new mutual fund business established as ‘Bajaj Finserv Mutual Fund’.

The newly introduced Bajaj Finserv AMC is a subsidiary of Bajaj Finserv that is the holding company for several financial services businesses under the Bajaj Group based in Pune, India. Bajaj Finserv had received approval from the Securities and Exchange Board of India (SEBI) in March this year.

On the launch of Bajaj Finserv Mutual Fund, Mr Sanjiv Bajaj – Chairman & Managing Director at Bajaj Finserv, said, “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.”

“Technology and analytics have been the cornerstones of businesses at Bajaj Finserv and are not only enablers but also differentiators. Bajaj Finserv Mutual Fund will deploy technology at scale to empower teams, create platforms for distributors, simplify investments, and build long-term sustainable value for customers. We believe the asset management business positions Bajaj Finserv for an exciting new chapter of growth,” he added further.

Currently, as per SEBI’s approval Bajaj Finserv Mutual Fund is allowed to launch seven schemes, and the fund house will start rolling out these schemes within a period of 30 days. They will launch a comprehensive set of products across categories like fixed income (a liquid fund, an overnight fund and a money market fund), hybrid and equity categories (a balanced advantage fund, a large- and mid-cap fund and a flexi-cap fund) to meet the needs of diverse investor profiles ranging from retail and HNIs to institutions. The mutual fund has also received an approval to launch an arbitrage fund.

However, the fund house has previously decided against launch of an actively managed large-cap fund as the majority of fund managers in the industry have historically been unable to outperform benchmark returns.

Mr Ganesh Mohan, Chief Executive Officer of the newly launched ‘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 – the fundamental pillars on which the Bajaj Finserv is built. Our primary differentiator is our investment philosophy. 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’. Our team, comprising experts from across the industry and professionals from Bajaj Finserv, enables us to benefit from deep industry know-how as well as Bajaj Finserv’s culture and DNA.”

Since 2021, five new mutual funds have entered the industry and Bajaj Finserv is amongst the list of newly set-up fund houses in the Rs 40 trillion Indian mutual funds industry. This new entrant is the 43rd asset management company under the industry that has amassed assets under management (AUM) of over Rs 41.52 lakh crore as of April, 2023.