Bajaj Finserv Launches New Mutual Fund Scheme: Equity Savings Fund NFO Opens July 28

Pune, July 23, 2025 – Bajaj Finserv Mutual Fund has launched a new hybrid offering, the Equity Savings Fund, with its NFO opening on July 28, 2025. The scheme combines investments in equity, arbitrage, and debt instruments, targeting moderate-risk investors seeking income stability and long-term capital growth.

The fund follows a structured asset allocation approach with defined exposure limits across equity, arbitrage, and debt. It adopts a multi-cap strategy under its proprietary INQUBE framework and is managed by a three-member team with deep experience across equity, fixed income, and arbitrage strategies.

Key Scheme Highlights

The scheme is an equity savings mutual fund aiming to combine capital growth with income stability by investing across equities, arbitrage, and debt instruments. It is benchmarked to the Nifty Equity Savings TRI and targets moderate-risk investors.

• Fund Category: Equity Savings Fund
• Benchmark Index: Nifty Equity Savings TRI
• Investment Strategy: Equity (net long and arbitrage) and debt instruments
• Minimum Investment: ₹500 (lump sum or SIP; multiples of ₹1 thereafter)
• Risk Level: Moderate
• Exit Load: 0.25% if redeemed within 7 days; nil thereafter
• Scheme Reopening: Within 5 business days post-allotment

Portfolio Allocation Framework

The fund follows a structured allocation strategy across equity, debt, and alternative instruments, with defined exposure limits to balance risk and return. It also includes selective investments in foreign and hybrid securities.

• Equity & Equity-related Instruments: 65% – 90%

  • Arbitrage (Hedged): 25% – 80%

  • Net Long Equity (Unhedged): 10% – 40%

• Debt & Money Market Instruments: 10% – 35%

• Units of REITs & InvITs: 0% – 10%

• The fund may also invest in foreign securities, structured obligations, and AT1/Tier 2 bonds, within SEBI’s prudential limits.

Strategic Investment Philosophy

Under the proprietary INQUBE framework, the equity portion will follow a multi-cap, multi-sector approach, combining fundamental analysis with data-driven insights. Arbitrage strategies will target cash-futures spreads, while the debt portion focuses on instruments with sound credit profiles and yield efficiency.

Fund Manager Line-Up

The fund is managed by a team of experienced professionals, each overseeing a specific asset class based on their domain expertise and past track record.

• Equity: Sorbh Gupta – 16+ years of experience; previously with Quantum AMC and Pranav Securities
• Arbitrage: Ilesh Savla – 25+ years of experience; past roles include Reliance Nippon and Equirus
• Fixed Income: Siddharth Chaudhary – 19+ years of experience; formerly with Sundaram AMC and Indian Bank Treasury

Plan Options & SIP Facilities

• Growth (default) and IDCW (Reinvestment/Payout/Transfer) options
• Direct and Regular Plans with different NAVs
• SIP frequencies: Daily, Weekly, Fortnightly, Monthly, Quarterly
• SIP Top-Up, Wealth SIP, Pause, Modification, and SWP features supported
• Minimum SIP: ₹500 for 6 installments. SWP requires two minimum withdrawals of ₹1,000.

Expense Ratio and Load Details

The fund has a defined cost structure with transparent load terms and investor payout timelines, aligned with SEBI guidelines.

• Total Expense Ratio (TER): Up to 2.25% on the first ₹500 crore of AUM
• Additional Expenses: Up to 0.05% plus 0.30% B30 incentive (if eligible)
• Entry Load: Nil
• Exit Load: 0.25% if redeemed within 7 days
• Redemption Timelines: Proceeds dispatched within 3 working days; IDCW within 7 working days
• Delay Penalty: 15% interest per annum on delayed payouts

Regulatory & Taxation Snapshot

• Compliant with SEBI MF Regulations 1996 and SEBI Master Circular dated June 27, 2024
• No investments in FoFs or foreign securitized debt
• Applicable TDS for IDCW: 10% for residents (above ₹10,000/year), 20%+ for non-residents
• LTCG Tax: 12.5% above ₹1,25,000 gains; STCG Tax: 20% for non-residents

Outlook

The fund launch expands Bajaj Finserv AMC’s hybrid product lineup with a strategy combining equity, arbitrage, and debt. The structured allocation and experienced fund manager line-up position it to attract moderate-risk investors. Market traction will depend on execution and portfolio performance post-allotment.

About Bajaj Finserv Mutual Fund

Bajaj Finserv Mutual Fund is a SEBI-registered asset manager under Bajaj Finserv Asset Management Ltd., headquartered in Pune. The AMC offers a diverse suite of mutual fund products spanning equity, debt, ETFs, and hybrid solutions. This Equity Savings Fund marks a strategic addition to its hybrid product lineup.

REF: https://portal.amfiindia.com/spages/14270.pdf

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