Launch Announcement: Equity Savings Fund Unveiled by Bajaj Finserv Asset Management Company
Bajaj Finserv Asset Management Company has launched a new mutual fund, the Bajaj Finserv Equity Savings Fund. This hybrid fund offers a unique blend of equity, debt, and arbitrage, making it an appealing option for investors seeking growth, stability, and tax efficiency.
Suitable for a Variety of Investors
The Bajaj Finserv Equity Savings Fund is designed to cater to first-time investors, conservative investors, investors with short to medium-term goals, and those who want to avoid high market volatility but still want growth. This fund is an excellent choice for those starting their investment journey or looking to add balance to their portfolio.
Balancing Growth and Stability
The fund aims to balance the need for potential growth with the need for relative stability. It achieves this by investing in growth-oriented equities, income-generating fixed income instruments, and capitalizing on arbitrage opportunities. This strategic allocation helps manage risk better than pure equity funds while offering potentially better returns than traditional fixed income options.
Growth through Equities
The equity part of the fund provides the opportunity for your money to potentially grow when markets perform well.
Stability via Debt
The debt part adds relative stability and helps reduce risk when markets are down. It also offers relatively steady returns.
Low-risk Returns from Arbitrage
The arbitrage part of the fund uses small price differences in the market to earn low-risk, steady income, adding another layer of stability to the portfolio.
Tax Efficiency and Flexibility
The fund's tax-efficient structure is another key feature. By maintaining at least 65% equity allocation, it qualifies as an equity-oriented scheme, making it eligible for long-term capital gains tax at 12.5%, with an exemption on LTCG up to Rs 1.25 lakh per financial year. This makes the Bajaj Finserv Equity Savings Fund a more tax-efficient option for long-term investors compared to many other debt-oriented options.
The fund also offers flexibility and stability, enabling systematic withdrawal plans for income needs, smooth reallocation for conservative strategy adaptation, and broad diversification including exposure to REITs and InvITs within the hybrid portfolio.
Managing Risk and Volatility
The three-way structure of the Bajaj Finserv Equity Savings Fund helps smooth your investment journey, as you are not completely at the mercy of market ups and downs. Since it is treated as an equity fund for tax purposes, the long-term capital gains (for investments held more than 1 year) are taxed at 12.5% (beyond Rs.1.25 lakh of gains). This makes the fund a more controlled option compared to pure equity funds.
Considerations and Timeline
It is crucial to consult a financial advisor to determine if this fund aligns with your investment goals. The NFO (New Fund Offer) for the Bajaj Finserv Equity Savings Fund began on 28th July 2025 and will last until 11th August 2025. An SIP (Systematic Investment Plan) investment in the fund can be considered for a more manageable investment approach.
In summary, the Bajaj Finserv Equity Savings Fund aims to combine growth, stability, tax-efficiency, and risk management through its strategic allocation to equity, arbitrage, and debt, making it suitable for relatively conservative investors seeking steady long-term wealth creation with controlled volatility.
This fund, the Bajaj Finserv Equity Savings Fund, is a suitable choice for those looking for a balanced approach to investing in personal-finance, catering to first-time investors, conservative investors, investors with short to medium-term goals, and those who want to avoid high market volatility but still want growth. By investing in finance areas such as growth-oriented equities, income-generating fixed income instruments, and capitalizing on arbitrage opportunities, the fund aims to balance the need for potential growth with the need for relative stability, providing a more tax-efficient option for long-term investors compared to many other debt-oriented options, thanks to its tax-efficient structure and 65% equity allocation. This fund is an excellent choice for starting one's investment journey or adding balance to one's portfolio in the realm of personal-finance.
