Bajaj Finserv Mutual Fund announced the launch of Bajaj Finserv Overnight Fund, an open-ended debt scheme investing in overnight securities with relatively low interest rate risk and relatively low credit risk.
The scheme opened for public subscription on June 29, 2023, and will close on July 04, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.
Q. What kind of mutual fund scheme is this?
This is an open-ended debt scheme investing in overnight securities with relatively low interest rate risk and relatively low credit risk.
Q. What is the main objective of investing in this fund?
The investment objective of the scheme is to provide reasonable returns commensurate with low risk and a high level of liquidity, through investments made primarily in overnight securities having maturity of one business day. There is no assurance that the investment objective of the scheme will be achieved.
Commenting on the launch, Ganesh Mohan, Chief Executive Officer, Bajaj Finserv Asset Management, said, “At Bajaj Finserv AMC, we believe that your money should work hard for you every day. And money lying idle in your savings or current account does the opposite. Liquid funds are a great way to balance both liquidity and returns while overnight funds ensure that your money grows even over a very short period of a couple of days. With our prudent risk management practices, we will always prioritize the safety of investment followed by liquidity and then returns.”
Q. How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹1000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation (% of net assets) of the scheme’s portfolio will be as follows:
Indicative allocations (% of total assets)
Overnight securities or debt/money market instruments maturing on or before the next business day
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched many such funds in the past. You may view some of them in the table below.
Mutual Fund House
Name of the Liquid Fund
Canara Robeco Mutual Fund
Canara Robeco Overnight Fund
Quant Mutual Fund
Quant Overnight Fund
Invesco Mutual Fund
Invesco India Overnight Fund
Bank of India Mutual Fund
Bank of India Overnight Fund
Axis Mutual Fund
Axis Overnight Fund
DSP Mutual Fund
DSP Overnight Fund
Q. How will the scheme benchmark its performance?
The scheme benchmark would be CRISIL Liquid Overnight Index. The composition of the aforesaid benchmark is such that, it is most suited for comparing the performance of the scheme. The trustees may change the benchmark in the future if a benchmark better suited to the investment objective of the scheme is available.
Q. Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be “Nil”.
Q. Who will manage this scheme?
Siddharth Chaudhary and Nimesh Chandan are the designated fund managers of this scheme.
Q. Does the fund contain any inherent risk?
The scheme involves “Low Risk” as per the details mentioned in theScheme Information Document and is best suited to investors willing to understand that their principal will be subject to very low risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.