Bajaj Finserv, known for its diverse financial offerings, is set to launch several new mutual fund products, promising exciting opportunities for both seasoned investors and newcomers alike.
The Bajaj Finserv Gilt Fund, which specializes in government securities, will open for subscription on December 30, 2024, and remain available until January 13, 2025. Gilt funds are known for their stability, making them an appealing option for risk-averse investors.
Alongside, the UTI Quant Fund, categorized as a thematic fund, will start accepting subscriptions on January 2, 2025, concluding on January 16, 2025. Thematic funds often focus on specific sectors or themes within the market, offering investors the potential for growth based on targeted strategies.
Of notable interest is the newly introduced Bajaj Finserv ELSS Tax Saver Fund, which opened its NFO (New Fund Offer) on December 24, 2024, and runs until January 22, 2025. Designed to support tax savings, this fund provides investors the chance to grow their wealth significantly. With the added incentive of tax deductions under Section 80C of the Income Tax Act, this fund allows subscriptions starting as low as ₹500.
The Bajaj Finserv ELSS Tax Saver Fund has several attractive features: it is categorized as an equity mutual fund, operates on an open-ended basis, and has no expense ratio, which can often eat away at profits. The fund has a lock-in period of three years, encouraging disciplined investing.
The investment objective aims for long-term capital appreciation from a diversified portfolio primarily composed of equity and related securities, appealing to those with moderate to high-risk appetites. With high volatility common within the stock market, the potential for substantial returns aligns well with the investment goals of savvy investors.
Fund managers Nimesh Chandan, Siddharth Chaudhary, and Sorb Gupta will oversee the ELSS Tax Saver Fund, bringing combined expertise and strategy to drive growth. Given the substantial assets under management (AUM) of almost ₹19,000 crore at Finserv Asset Management Limited, the track record and reputation of the management team can instill confidence among investors.
Reflecting on 2024, it has proved to be thriving for the mutual fund industry, with around 205 new NFOs launched and over ₹1 lakh crore raised cumulatively. This figure does not even account for offerings from December alone. Such record numbers indicate strong investor interest and engagement with market developments.
Among the highlights this past year, index funds gained significant traction, leading the sector with 76 new offerings, exhibiting investor enthusiasm for low-cost strategies. The sectoral and thematic funds also made substantial contributions, accumulating nearly ₹68,000 crore.
With tax efficiency and growth potential being cornerstones of its products, Bajaj Finserv's ELSS Tax Saver Fund stands as one participant among many aiming to capitalize on the soaring interest surrounding equity markets. This fund, with its lock-in period, encourages not just tax savings but also fosters long-term investment habits.
Investors, especially those considering diversified portfolios, are urged to examine their risk profiles and gather more information before jumping on new buying opportunities. Bajaj Finserv's focused approach on providing accessible investment avenues symbolizes its commitment to enhancing financial literacy and engagement among consumers.
For those contemplating where to park their investments, these newly launched funds may offer promising ventures, reinforcing the importance of aligning financial goals with sound investment decisions.