Investors Rejoice: Bajaj Finserv Launches Risk-Free Gilt Fund
A Safe Haven for Medium to Long-Term Returns
Bajaj Finserv Asset Management has introduced the Bajaj Finserv Gilt Fund, a game-changer for investors seeking risk-free returns over medium to long-term periods. This open-ended debt scheme invests in government securities, carefully crafted to balance high interest rate risk with low credit risk.
Key Features of the Bajaj Finserv Gilt Fund
The New Fund Offer (NFO) is now available for subscription from December 30, 2024, to January 13, 2025. With a ‘Moderate’ risk level, this fund 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. The net asset value (NAV) will be calculated daily, adhering to the details outlined in the NFO document.
Expert Insights: A Philosophy-Driven Approach
Nimesh Chandan, CIO of Bajaj Finserv AMC, emphasized the importance of their INQUBE philosophy in shaping their investment processes for fixed income. “We combine in-depth understanding of macroeconomic cycles with quantitative and behavioural analysis of market variables to generate healthy returns for investors,” he explained. Chandan also highlighted the potential of Gilt Funds to benefit from downward movements in interest rates and the fund’s focus on identifying mispriced segments in the yield curve.
Flexibility and Choice for Investors
The Bajaj Finserv Gilt Fund offers both Growth and IDCW options under its Regular and Direct Plans, catering to diverse investor preferences. Additionally, investors can opt for lump-sum investments or Systematic Investment Plans (SIPs), providing flexibility and convenience.
A Growing Presence in the Market
As of October 2024, Bajaj Finserv’s Assets Under Management (AUM) grew an impressive 29% since September 30, 2023, reaching Rs3.73tn ($43.67bn). Last year, the company secured approval from the Securities and Exchange Board of India (SEBI) to launch its mutual fund operations, marking a significant milestone in its growth journey.
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