Bajaj Finserv Mutual Fund Files Draft for Active Momentum Fund

Bajaj Finserv Asset Management has filed a draft with the SEBI for a new scheme called Bajaj Finserv Active Momentum Fund. It is an open-ended equity scheme that will follow the momentum investing theme. The fund plans to invest mainly in companies that show strong price movement trends.

Investment Objective and Allocation

The objective of the scheme is to generate long-term capital appreciation by investing in equity and equity-related instruments of companies that reflect momentum characteristics. 

As per the draft, the fund will allocate 80% to 100% of its assets in equities, and up to 20% in debt, money market instruments, and units of mutual fund schemes. It may also invest up to 10% in REITs and InvITs.

Benchmark and Risk Rating

The scheme will benchmark its performance against the NIFTY 500 Total Return Index (TRI), which tracks the top 500 Indian companies by market capitalisation. Both the scheme and the benchmark fall under the “very high risk” category. The draft mentions that the benchmark may be changed in line with SEBI or AMFI guidelines if required.

NFO and Minimum Investment

The New Fund Offer (NFO) will remain open for a minimum of 3 working days and a maximum of 15 calendar days. Each unit will be offered at ₹10. The minimum application amount is ₹500, both for lump sum and Systematic Investment Plans (SIPs), with at least 6 instalments for SIPs.

Load and Redemption

The fund will not have any entry load. An exit load of 1% will apply if units are redeemed within three months from the date of allotment. Beyond that period, no exit load will be charged. Redemption proceeds will be dispatched within three working days.

Investors will have the option to invest through SIP, Systematic Withdrawal Plan (SWP), and Systematic Transfer Plan (STP) on a daily, weekly, monthly, or quarterly basis.

Read More: Quant Small Cap Fund Cuts Stakes in 7 Stocks, Exits Jana Small Finance & Thyrocare!

Conclusion

The draft filing states that the scheme will reopen for continuous sale and repurchase of units after the NFO period. There is no guarantee of returns from the investment.

Ready to take control of your investments? Use our SIP Calculator to estimate returns and plan smarter. Start your wealth-building journey today! 

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. 

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