Bajaj Finserv Asset Management unveils new Gilt Fund
This open-ended debt scheme, which invests in government securities, is designed with relatively high interest rate risk and low credit risk in mind.
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.
'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.
"Bajaj Finserv Asset Management unveils new Gilt Fund" was originally created and published by Private Banker International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
02-07-2025
- Business Upturn
Invesco Launches New Low-Risk Fund with Better Tax Benefits
Invesco Mutual Fund has launched a new fund called the Invesco India Income Plus Arbitrage Active Fund of Fund. This fund aims to offer investors a smart and simple alternative to traditional debt investments by combining the benefits of debt and arbitrage strategies. The fund invests around 60–65% in debt-oriented schemes, mainly in high-quality AAA-rated corporate bonds and government securities, with a focus on the Invesco India Corporate Bond Fund. The remaining 35–40% is allocated to the Invesco India Arbitrage Fund, which earns from the price differences in the cash and futures markets, while fully hedging the equity exposure. The fund is actively managed, meaning the investment mix between debt and arbitrage will change based on market conditions to give better risk-reward balance. One of the key benefits of this fund is its tax efficiency. If the investment is held for more than 24 months, the capital gains are taxed at 12.5%, which is lower than the tax rates for traditional debt funds. Speaking at the launch, Mr. Vikas Garg, Head of Fixed Income & Fund Manager, Invesco Mutual Fund said 'With the evolving investment landscape, conservative investors are seeking options that align with their risk tolerance while enhancing tax efficiency. As the fixed income market remains in a sweet spot, the Invesco India Income Plus Arbitrage Active Fund of Fund offers a smart alternative to traditional debt investments—an efficient combination of arbitrage and fixed income strategies that provides relatively lower risk & a better tax efficiency.' The minimum investment amount during the New Fund Offer (NFO) is ₹1,000, and the fund has no exit load, which means investors won't be charged any fee for withdrawing their money. This fund is ideal for conservative investors looking for low-risk income and long-term tax benefits.
Business Upturn
25-06-2025
- Business Upturn
The power of compounding: How to build wealth with mutual funds
By News Desk Published on June 25, 2025, 23:20 IST Wealth creation is a long-term journey and one of the most powerful tools available to investors is the principle of compounding. Mutual funds, especially when invested through Systematic Investment Plans (SIPs), offer the perfect platform to harness compounding and steadily grow wealth over time. While selecting the right mutual fund is essential, understanding how compounding works can significantly enhance the outcome of any investment strategy. Here's everything you need to know. What is compounding? Compounding refers to the process where the earnings on an investment, whether in the form of interest, dividends, or capital gains, are reinvested to generate additional earnings. This creates a snowball effect, where not just the principal but also the accumulated returns begin to generate further returns. In simple terms, compounding is 'interest on interest.' Suppose an individual invests ₹1,00,000 in a mutual fund earning a 10% annual return. After 1 year: The investment grows to ₹1,10,000. After 2 years: Returns are calculated on ₹1,10,000, bringing the value to ₹1,21,000. This growth continues to accelerate over time, assuming the investment is left undisturbed. The longer the money stays invested, the more powerful the compounding effect becomes. Using a compounding calculator A compound interest calculator is a useful tool that helps investors estimate how their money will grow over time. Only a few basic inputs are required: The initial investment amount Expected rate of return Duration (number of years) Frequency of compounding (annually, quarterly, monthly, etc.) Using these inputs, the calculator projects the future value of the investment. This helps investors set clear goals and visualise how consistent investing can translate into long-term wealth. Strategies to maximise compounding through mutual funds Investors can maximise the benefits of compounding by following these strategies: Start early : Time is the most critical factor. The earlier investors start, the more time their investments have to grow. : Time is the most critical factor. The earlier investors start, the more time their investments have to grow. Stay consistent : Regular SIP contributions add up over time and steadily increase the principal base. : Regular SIP contributions add up over time and steadily increase the principal base. Reinvest returns : Choose mutual fund options that reinvest dividends and capital gains, rather than paying them out. : Choose mutual fund options that reinvest dividends and capital gains, rather than paying them out. Remain invested long term : Compounding rewards patience. Avoid frequent withdrawals or disruptions in SIPs. : Compounding rewards patience. Avoid frequent withdrawals or disruptions in SIPs. Use calculators for planning: Regularly track investment growth using a compound interest calculator. It helps identify shortfalls and adjust contributions when necessary. Conclusion The power of compounding, when combined with disciplined investing through mutual funds, can be a game-changer for long-term wealth creation. SIPs offer a structured and accessible way to benefit from this principle through small, regular contributions that grow over time. By starting early, reinvesting returns, and using tools like compound interest calculators for better planning, investors can unlock exponential growth and stay aligned with their financial goals. In the long run, compounding is not just a financial concept; it's a quiet force that builds a secure future, one month at a time. Ahmedabad Plane Crash News desk at
Business Mayor
14-05-2025
- Business Mayor
Total amount collected through SIP in April rises to its highest in 2025 so far: ICRA Analytics
Market downturns notwithstanding, retail investors continued to invest through the SIP route with the total amount collected in April 2025 rising to its highest since January this year. The total amount collected through SIP increased by Rs 232 crore in April 2025 to Rs 26,632 crore, up from Rs 26,400 crore in January this year. On a month-on-month basis, the amount collected through SIP increased by 2.72% from Rs 25,926 crore in March 2025. The steady rise in SIP contributions, even amid market volatility, highlights investors' growing confidence and commitment to long-term wealth creation. This trend shows their resilience in facing market fluctuations and their determination to stay focused on their financial objectives, according to a release by ICRA Analytics. The market downturns may be considered as an opportunity, and staying invested will result in increased accumulation of mutual fund units, which will benefit the investor once the market recovers in the long run. Regular investments through SIPs can help average out the purchase cost of mutual fund units over time, reducing the impact of market volatility. SIP Performance for Equity mutual funds. Top 5 sorted based on 5-year yield Scheme Name 1 Year 3 Year 5 Year ICICI Prudential Infrastructure Fund -5% 25.10% 31.10% SBI PSU Fund – Growth -4.48% 30.15% 30.63% Motilal Oswal Midcap Fund – Reg – Growth -5.08% 26.46% 30.12% HDFC Infrastructure Fund – Growth -6.69% 25.62% 29.68% Aditya Birla Sun Life PSU Equity Fund – Reg – Growth -8.18% 26.54% 29.47% Source: MFI 360 Explorer Based on the last five year SIP performance, the top performers were SBI PSU Fund, Motilal Oswal Midcap Fund, HDFC Infrastructure Fund, ICICI Prudential Infrastructure Fund, Aditya Birla Sun Life PSU Equity Fund. SIP Performance for debt mutual funds. Top 5 sorted based on 3-year yield Source: MFI 360 Explorer Based on the last three year SIP performance of debt mutual funds, the top performers were Franklin India STIP, DSP Credit Risk Fund, HSBC Credit Risk Fund, Aditya Birla Sun Life Credit Risk Fund, Aditya Birla Sun Life Medium Term Plan. READ SOURCE businessmayor May 14, 2025
