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Bajaj Finserv AMC launches Equity Savings Fund; check key details here
According to the scheme information document (SID), the objective of the scheme is to generate capital appreciation and income by investing in equity and equity-related instruments, arbitrage opportunities and fixed income instruments, including debt, government securities and money market instruments. However, there is no assurance that the investment objective of the scheme will be achieved.
Ganesh Mohan, managing director of Bajaj Finserv AMC, said that by combining growth-oriented equities, stable debt and low-risk arbitrage, it aims to deliver consistent returns with reduced volatility. 'In an environment where inflation impacts fixed income and equity markets remain unpredictable, this diversified strategy helps manage risk while capturing upside potential,' he added.
The performance of the scheme will be benchmarked against the performance of the Nifty Equity Savings TRI. The scheme will maintain an overall equity allocation of at least 65 per cent, including arbitrage, allowing it to qualify for equity-oriented taxation.
The equity portion of the fund will be managed by Sorbh Gupta, arbitrage by Ilesh Savla, and the debt portion by Siddharth Chaudhary.
During the NFO, investors can invest a minimum of ₹500 and in multiples of ₹1 thereafter. The fund has no lock-in period and accepts systematic investment and withdrawal plans.
According to the SID, if units are redeemed or switched out within seven days from the date of allotment, a 0.25 per cent of the Net Asset Value (NAV) will be charged as an exit load. However, no exit load will be charged if units are redeemed or switched out after seven days from the date of allotment.
As per the risk-o-meter, the funds invested in the scheme will be at very high risk.
Bajaj Finserv Equity Savings Fund: Should you invest?
According to the SID, the product is suitable for investors seeking wealth creation over the long term and capital appreciation by investing in equity and equity-related instruments and regular income through investments in fixed income securities, arbitrage and other derivative strategies. However, investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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