India's 41st fund house will initially be launching debt schemes
06-Jun-2023 •Chirag Madia
Bajaj Finserv has announced the launch of Bajaj Finserv Mutual Fund, marking its entry into the Rs 40 trillion asset management industry. The firm obtained regulatory approval in March to establish the fund house .
Initially, the company plans to introduce debt schemes, including liquid, overnight, and money market schemes. Subsequently, equity and hybrid funds will be launched.
Competition in the mutual fund industry
The Indian mutual fund industry is highly competitive, with the top-eight asset management companies (AMCs) holding approximately 74 per cent of the industry's assets under management (AUM).
As the 41st fund house in the country, Bajaj Finserv Mutual Fund will face competition from established and new players entering the mutual fund operations sector.
| In-principle approval is under consideration | In-principle approval granted, final registration under consideration |
|---|---|
| 1) Unifi Capital Private Limited | 1) Zerodha Broking Limited |
| 2) Abira Securities Limited | 2) Helios Capital Management PTE Limited |
| 3) Alpha Alternatives Fund Advisors LLP | 3) Old Bridge Capital Management Private Limited |
| 4) Wizemarkets Analytics Private Limited | |
| Source: SEBI; Status as on March 31, 2023 | |
Investment approach
On the equity front, Bajaj Finserv Mutual Fund aims to integrate different sources of alpha, including information edge, quantitative edge, and behavioural edge, through their "Inqube" framework.
The fund house does not actively favour value or growth investing styles. "We believe growth creates future value, and if you don't have quality, you can fall into the value trap. When we launch a fund, they might have a style bias, but that is also after considering the pros and cons of that style," said Nimesh Chandan, CIO of the fund house who brings 17 years of experience in the mutual fund industry.
Future outlook
"Over a longer period of time, we want to be counted as a leading player in this sector," said Ganesh Mohan, CEO, Bajaj Finserv Mutual Fund.
However, the fund house currently has no specific targets for the future.
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