Bajaj Finserv Banking and Financial Services Fund Filed Draft With SEBI

Bajaj Finserv Mutual Fund has submitted draft papers to the Securities and Exchange Board of India (SEBI) for the Bajaj Finserv Banking and Financial Services Fund. The scheme is structured as an open-ended equity fund with a sectoral focus on banking and financial services.

Investment Objective

The stated objective is to provide long-term capital appreciation through investments in equity and equity-related securities of companies in the financial services space. The document clarifies that there is no assurance that the objective will be achieved.

Benchmark and Risk Classification

The scheme will be benchmarked against the NIFTY Financial Services Total Return Index (TRI), which includes banks, NBFCs, housing finance firms, insurance companies, and other financial sector entities. Both the fund and benchmark are placed in the “very high risk” category.

Asset Allocation

The allocation framework provides that 80-100% of assets will be invested in financial sector equities. Up to 20% may go into equities outside the sector, while another 20% may be placed in debt and money market instruments. 

Exposure to REITs and InvITs is capped at 10%. Overseas investments are allowed up to 20% of assets, within which a maximum of $20 million may be allocated to foreign securities and $5 million to overseas ETFs.

Plans and Options

The fund will offer Direct and Regular plans. Each plan will have a Growth option and an Income Distribution cum Capital Withdrawal (IDCW) option, with payout, reinvestment, and transfer sub-options. The default will be the Growth option.

New Fund Offer Details

Units will be available at ₹10 per unit during the New Fund Offer (NFO). The minimum application amount is ₹500, with SIPs also starting from ₹500 for at least 6 instalments. Additional purchases can be made in multiples of ₹100. 

The NFO period will last between three working days and fifteen calendar days; specific dates are yet to be announced.

Exit Load and Redemption

Redemption of units within three months of allotment will attract an exit load of 1%. After this period, no exit load applies. Redemption proceeds are to be paid within three working days, and IDCW payments within seven working days of the record date.

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Conclusion

The draft filing outlines the framework for Bajaj Finserv Mutual Fund’s proposed sectoral equity scheme, which will now await regulatory clearance from SEBI.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.