• Banking / Finance

Bajaj Finserv expands retail capabilities with launch of Bajaj Finserv Mutual Fund

• Prashant Kapadia
• June 6, 2023

by Prashant Kapadia/NHN

• Bajaj Finserv Asset Management Limited can now launch the following seven funds: liquid fund, money market fund, overnight fund, arbitrage fund, large and mid-cap fund, balanced advantage fund and flexi cap fund

• Investment philosophy & tech-enabled approach to be key differentiators

Mumbai/Pune, June 6, 2023: Bajaj Finserv Ltd., one of India’s most diversified and technology-driven financial services groups, today announced the strengthening of its suite of retail financial offerings with the launch of its new mutual fund business under Bajaj Finserv Mutual Fund.

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 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.

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.”

“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.

Ganesh Mohan, Chief Executive Officer, Bajaj Finserv Asset Management Company, said, “Bajaj Finserv Mutual Fund’s 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,” Mohan added.

Bajaj Finserv Mutual Fund had filed its first seven schemes with SEBI i.e. the liquid fund, money market fund, overnight fund, arbitrage fund, large and mid-cap fund, balanced advantage fund and flexi cap fund.  Bajaj Finserv Mutual Fund will start rolling out these products within the next 30 days, starting with Fixed Income products.

The future product roadmap will be determined by the investment team based on market opportunities and the possibilities of generating sustainable alpha, as opposed to large market size categories, Mohan said.

Bajaj Finserv received the final registration from the Securities and Exchange Board of India (SEBI) to commence its mutual fund operations under Bajaj Finserv Mutual Fund, with Bajaj Finserv Asset Management Limited (BFAML) as the Investment Manager, in March 2023. Bajaj Finserv Mutual Fund’s operating model aligns with Bajaj Finserv’s entrepreneurial culture, innovation, execution rigor, strong risk management and long-term sustainable growth.

The company’s investments team is led by Nimesh Chandan, Chief Investment Officer, an investment professional with 22 years of experience in investing in Indian capital markets. The leadership team of Bajaj Finserv Mutual Fund includes Aniruddha Chaudhari, Head – Retail & Institutional business, Nilesh Chonkar, Head – Operations & Finance, Harish Iyer, Head – Legal & Compliance, Royston Netto, Head – Marketing & Digital Business, Niranjan Vaidya, Head – IT and Vaibhav Date, Head – Human Resources.

Bajaj Finserv Mutual Fund will leverage the Bajaj brand which is synonymous with delivering high-quality products for India for almost a century. Bajaj Finserv, over 16 years, has built strategic proficiencies to help meet an individual’s financial needs and build financial resilience through solutions such as savings products, consumer and commercial loans, mortgages, auto financing, securities brokerage services, general and life insurance, and investments.

Bajaj Finserv serves 10 crore customers at 4,500 locations through a combination of digital and physical reach. The Bajaj Group has so far touched 2 million lives through its social impact programmes.

About Bajaj Finserv Asset Management Limited : Bajaj Finserv Asset Management Limited (BFAML) is a 100% subsidiary of Bajaj Finserv Limited. Backed by one of India’s most respected brands, BFAML is set to offer an array of innovative investment solutions using a differentiated approach to investing, including but not limited to, mutual funds (equity, debt, hybrid), portfolio management services and alternative investment funds, subject to regulatory approval. With a future-focused investment strategy, it aims to help every Indian achieve life’s financial goals.

Know more www.bajajamc.com

About Bajaj Finserv Limited : Bajaj Finserv Ltd, an unregistered Core Investment Company (CIC) under Core Investment Companies (Reserve Bank) Direction, 2016, as amended, is one of India’s leading promoters of financial services with consolidated total income of Rs. 82,072 crore in FY23.

Bajaj Finserv serves over a 100 million customers with its diversified portfolio that helps meet financial needs and build an individual’s financial resilience. Its suite of financial solutions includes savings products, consumer and commercial loans, mortgages, auto financing, securities brokerage services, general and life insurance, and investments.

Bajaj Finserv is focused on continuous innovation through smart use of technology, data and analytics to drive seamless, simplified and personalized experiences for its customers. Bajaj Finserv holds 52.49% stake in Bajaj Finance Ltd., a listed non-bank with the strategy and structure of a bank. It holds 74% stake each in Bajaj Allianz General Insurance Company Ltd. and Bajaj Allianz Life Insurance Company Ltd.

Subsidiaries of Bajaj Finance Ltd. include Bajaj Housing Finance Ltd., offering a range of housing finance solutions, and Bajaj Financial Securities Ltd, an all-in-one digital platform combining demat, broking and margin trade financing for retail and HNI clients on a predominantly B2C platform.

Bajaj Finserv holds an 80.13% stake in Bajaj Finserv Direct Limited, a diversified financial services and e-commerce open architecture marketplace for loans, cards, insurance, investments, payments and lifestyle products. Bajaj Finserv’s wholly owned subsidiaries include Bajaj Finserv Health Ltd., Bajaj Finserv Ventures Ltd., Bajaj Finserv Asset Management Ltd., and Bajaj Finserv Mutual Fund Trustee Ltd. Both BFS and BFL are included in the benchmark BSE Sensex and Nifty 50 index of large cap stocks.

Bajaj Finserv is committed to driving equitable and inclusive opportunities for children and youth through its social impact initiatives. Its social responsibility programmes in the areas of health, education, protection, skilling and inclusion for people with disability (PwD) are life-transformative and aimed at solving the most pressing issues of society. So far, Bajaj Finserv and its group of companies have touched over 2 million lives through 200+ partner-implemented programmes across the country. The company’s flagship self-implemented programme, BEYOND, is aimed at enabling graduates from small towns secure employment in the financial services industry.