Bajaj Finserv, one of India’s most diversified and technology-driven financial services groups, announced on June 06, 2023, the launch of its new mutual fund business under Bajaj Finserv AMC.
Bajaj Finserv Mutual Fund will launch a comprehensive set of products across fixed-income, hybrid, and equity categories to meet the needs of diverse investor profiles ranging from retail and high-net-worth individuals (HNIs) to institutions. To begin, the company will launch a set of fixed-income, liquid, overnight, and money market products to cater to the institutional segment and company treasuries.
As opposed to most mutual fund companies being housed in Mumbai and Bengaluru, this subsidiary of Bajaj Finserv will be located in Pune.
Sanjiv Bajaj, Chairman & Managing Director, 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.”
Bajaj Finance AMC’s decision to launch its seven schemes came post the Securities and Exchange Board of India (SEBI)’s approval that allowed this company to launch mutual fund schemes in various categories including an arbitrage fund. The idea of including shorter-duration debt funds in the mutual fund portfolio stems from the fact that these funds enable investors to launch systematic transfer plans (STPs). With the aid of an STP, investors can move an equal amount of cash from a debt fund, typically a liquid fund or another similar scheme to an equity fund.
“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,” added Bajaj.
This launch is different from what other mutual fund houses have launched so far. As opposed to the various AMCs launching funds in only one category at a time, Bajaj Finserv has launched both equity and debt mutual fund schemes.
Ganesh Mohan, Chief Executive Officer, Bajaj Finserv AMC said, “Bajaj Finserv Mutual Fund’s strategy is built on innovation, win-win partnerships, and a future-ready business model through the usage of data and tech platforms – the fundamental pillars on which the Bajaj Finserv is built.”
The product portfolio also suggests that it intends to follow the tried-and-true route of introducing schemes across equities and debt segments.
Mohan added, “Our primary differentiator is our investment philosophy. We look to combine all sources of alpha, namely the information edge, quantitative edge as well as 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.”
The fund house will start rolling out these products within the next month, starting with fixed-income products. The company’s investment team is led by Nimesh Chandan, Chief Investment Officer, an investment professional with 22 years of experience in investing in Indian capital markets.