Bajaj Finserv Asset Management has reportedly launched the Bajaj Finserv Gilt Fund, to offer investors risk-free returns over medium to long-term periods.
This open-ended debt scheme, which invests in government securities, is designed with relatively high interest rate risk and low credit risk in mind.
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The New Fund Offer (NFO) will be available for subscription from 30 December 2024 to 13 January 2025.
This new fund operates with a ‘Moderate’ risk level and focuses on generating returns through investments in sovereign securities from the Central or State Governments, as well as Reverse repo or Tri-party repo on Government securities or treasury bills.
Its net asset value (NAV) will be calculated daily, adhering to the details outlined in the NFO document, reported CNBC TV18.
Bajaj Finserv AMC CIO Nimesh Chandan was quoted by The Financial Express as saying: “At Bajaj Finserv AMC, we have created our investment processes for fixed income on the foundation of INQUBE philosophy.
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By GlobalData“In this Fund too, we will be using the in-depth understanding of macroeconomic cycles, combined with quantitative and behavioural analysis of market variables with an aim to generate healthy returns for the investors.
“Gilt Funds provide an opportunity for investors to benefit from downward movement in interest rates. In this fund, we will also focus on identifying and investing in any mispriced segment in the yield curve to generate returns.”
The Bajaj Finserv Gilt Fund offers both Growth and IDCW options under its Regular and Direct Plans, catering to various investor preferences.
Additionally, it allows for lump-sum investments or Systematic Investment Plans (SIPs).
As of October 2024, Bajaj Finserv’s Assets Under Management (AUM) grew 29% since 30 September 2023, reaching Rs3.73tn ($43.67bn).
Last year, Bajaj Finserv secured approval from the Securities and Exchange Board of India (SEBI) to start its mutual fund operations.
