Upcoming NFO: Bajaj Finserv Mutual Fund Filed Draft for Business Cycle Fund

Bajaj Finserv Mutual Fund is set to introduce the Bajaj Finserv Business Cycle Fund, a thematic equity scheme priced at ₹10 per unit during the New Fund Offer (NFO).  

The NFO will remain open for 3 to 15 days, as allowed under SEBI rules. The fund will reopen for ongoing subscriptions and redemptions within 5 business days of allotment. It will operate as an open-ended scheme and will not be listed on stock exchanges.  

Investment Framework 

The scheme targets investing across sectors depending on business cycle phases. Its structure allows 80-100% exposure to equity and equity-linked instruments tied to the theme.  

A further 0-20% of the portfolio may be deployed in other equities, while up to 20% may be invested in debt and money-market instruments.  

The mandate also permits exposure of up to 20% in overseas securities and ETFs, and up to 10% in InvITs. Derivatives, securitised debt and stock lending may be used within SEBI’s prescribed limits.  

Benchmark and Risk 

Performance will be measured against the BSE 500 Total Return Index (TRI), which covers companies across large-cap, mid-cap and small-cap segments. Both the scheme and the benchmark fall under the “very high risk” category on the riskometer.  

Subscription and Load Structure 

Investors may choose between Direct and Regular plans, available in Growth and IDCW options. The minimum application amount is ₹500 for lump-sum and SIP investments.  

There is no entry load, while an exit load of 1% applies if units are redeemed within 3 months of allotment. No load is charged thereafter. Redemption proceeds are scheduled to be released within three working days.  

Operational Information 

NAVs will be calculated daily to three decimal places and published before 11 p.m. The 1st NAV will be disclosed within 5 business days from allotment. The fund may also use short-term deposits and TREPS for temporary deployment of cash, as permitted.  

Read More: Upcoming NFO: TRUST Mutual Fund Filed Draft for Mid Cap Fund! 

Conclusion 

The NFO outlines a business-cycle-based equity structure supported by defined allocation limits, operational timelines and regulatory disclosures, offering clarity on how the scheme will function once launched. 

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.