Bajaj Finserv Asset Management has introduced the Bajaj Finserv Gilt Fund, an open-ended debt scheme aimed at offering risk-free returns to investors over medium to long-term horizons.
Key Features of the Bajaj Finserv Gilt Fund
1. Investment Strategy:
The Gilt Fund focuses on investments in sovereign securities from the Central or State Governments, along with Reverse repo or Tri-party repo on Government securities or treasury bills.
2. Risk Profile:
Designed with a ‘Moderate’ risk level, the fund targets relatively high interest rate risk while maintaining low credit risk.
3. New Fund Offer (NFO):
- The subscription period runs from 30 December 2024 to 13 January 2025.
- Daily NAV Calculation: Investors can track the fund’s performance daily, as per details in the NFO document.
4. Investor Options:
- The fund offers Growth and IDCW (Income Distribution cum Capital Withdrawal) options under Regular and Direct Plans.
- It caters to diverse investment preferences through lump-sum investments and Systematic Investment Plans (SIPs).
Strategic Insights from Bajaj Finserv AMC
Nimesh Chandan, CIO of Bajaj Finserv AMC, emphasized the use of the INQUBE philosophy in the fund’s investment processes.
“In this Fund, we combine macroeconomic cycle insights with quantitative and behavioural market analysis to generate healthy returns for investors,” said Chandan.
He added that gilt funds enable investors to benefit from falling interest rates. The fund also aims to capitalize on mispriced segments in the yield curve for enhanced returns.
Performance and Growth of Bajaj Finserv
- Assets Under Management (AUM):
As of October 2024, Bajaj Finserv’s AUM grew 29% year-on-year, reaching ₹3.73 trillion ($43.67 billion). - Mutual Fund Operations Approval:
The company received SEBI approval in 2023 to commence its mutual fund operations, marking a milestone in its growth trajectory.
Why Consider Gilt Funds?
Gilt Funds, which invest in government securities, are particularly attractive for investors seeking stable returns with minimal credit risk. These funds also allow investors to benefit from interest rate fluctuations, making them a reliable option for conservative portfolios.
Conclusion
With its latest Gilt Fund, Bajaj Finserv Asset Management is offering a strategic investment avenue for those aiming to achieve risk-free returns over the medium to long term. This launch highlights Bajaj Finserv’s commitment to innovation and growth in the mutual fund space, catering to a wide range of investor preferences.