Bajaj Finserv Banking and PSU Fund

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Note: Historical Performance of this scheme is not available because this scheme has not completed 1 year since inception.

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Who Should Invest?

Individuals seeking to construct a foundational debt portfolio for short to medium-term investment horizon.

Individuals dissatisfied with the performance of traditional fixed-income options.

Investors interested in diversifying their portfolio across various debt investments apart from other traditional banking products.

Individuals who want relatively stable investment option for their capital.

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Why choose us?

Credit quality

We endeavor to invest in high-credit-rated AAA bonds, ensuring your investment’s credit quality.

Performance potential

Riding the yield curve from around the 5-year maturity profile, optimizing the performance potential for the unit of risk taken.

Expertise

Our team brings together years of experience navigating the complex world of fixed income investments.

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Investment Style & Portfolio Strategy

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Riding the yield curve refers to a fixed-income strategy where investors purchase long-term bonds with a maturity date longer than their investment time horizon.

Investors then sell their bonds at the end of their time horizon, profiting from the declining yield that occurs over the life of the bond.

For example, an investor with a 3-year investment horizon may buy a 5-year bond because it has a higher yield, the investor sells the bond at the 3-year date but profits from the higher 5-year yield.

If interest rates fall and/or the yield curve shape changes to normal from the current flat yield curve shape, then riding the yield curve is considered to be a profitable strategy.

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Potential Risk Class (PRC)

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The PRC matrix identifies the highest amount of potential risk that a debt mutual fund can assume.

This regulation was implemented by SEBI on December 1, 2021, making it essential for fund houses to categorize all new and existing schemes under a potential risk class (PRC) matrix.

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Key Features

Inception Date

November 13, 2023

Minimum Application Amount

Fresh Purchase (Incl. Switch-in): Minimum of Rs. 1,000/- and in multiples of Re. 1/- thereafter.

Category of Scheme

Banking and PSU Fund

Minimum Additional Application Amount

Additional Purchase (Incl. Switch-in): Minimum of Rs. 1,000/- and in multiples of Re.1/- thereafter.

Type of Scheme

An open ended debt scheme predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds with relatively high interest rate risk and moderate credit risk.

Minimum Redemption Amount

Minimum redemption amount – Re. 1 and in multiples of Re. 0.01/- or the account balance of the investor whichever is less.

Plan

Bajaj Finserv Banking and PSU Fund – Direct Plan
Bajaj Finserv Banking and PSU Fund – Regular Plan

Load Structure/Lock-In Period

Entry Load - Not applicable
Exit Load - Nil

Options/Sub-Option

• Growth option
• Income Distribution cum Capital Withdrawal (IDCW) option
IDCW option will offer the following sub-options:
• Payout of IDCW sub-option
• Reinvestment of IDCW sub-option
• Transfer of IDCW sub-option

Benchmark Index

Nifty Banking and PSU Debt Index

Face Value

₹10 / Unit

Asset Allocation Pattern

Instrument: Debt and money market instruments of banks, public sector undertakings, public financial institutions and municipal bonds
Indicative allocation: Maximum 100%, minimum 80%
Risk Profile: Low to moderate

Instrument: Debt and money market securities (including government securities) issued by entities other than banks, public sector undertakings, public financial institutions and municipal bonds
Indicative allocation: Maximum 20%, minimum 0%
Risk Profile: Low to moderate

Public sector entities/undertakings to include those entities:
•In which the Government of India/a State Government has at least 51% shareholding (directly or indirectly).
•Notified/qualifying as public sector entities, in accordance with norms/notified by Government of India/a State Government.
•The debt of which is guaranteed by Government of India/a State Government.

Investment Objective

To generate income by predominantly investing in debt & money market securities issued by banks, public sector undertaking (PSUs), public financial institutions (PFI), municipal bonds and reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and/or any security unconditionally guaranteed by the Govt. of India.

There is no assurance or guarantee that the investment objective of the scheme will be achieved.

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Fund Manager

Mr. Siddharth Chaudhary

Siddharth joined the Company in July 2022 as a Senior Fund Manager – Fixed Income. Prior to this, he was associated with Sundaram Asset Management Co. Ltd from April 2019 - July 2022 as Head Fixed Income – Institutional Business. From April 2017 – March 2019, he served as a Senior Fund Manager – Fixed Income, and from August 2010 – March 2017 as a Fund Manager – Fixed Income with Sundaram Asset Management Co. Ltd. During June 2006 – September 2010, he was working as Senior Manager, Treasury Dept in Indian Bank.

Mr. Nimesh Chandan

Nimesh has over 22 years of experience in the Indian Capital Markets. He has spent 17 years in Fund Management- managing and advising domestic and international investors, retail as well as institutional. Prior to joining Bajaj Finserv Asset Management Ltd, he has worked with Canara Robeco Asset Management as Head Investments, Equities (Domestic and Offshore). He has also worked with other asset management companies including Birla Sunlife Asset Management, SBI Asset Management and ICICI Prudential Asset Management.

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Scheme Documents

Presentation

Key Information Document (KIM)

Scheme Information Document (SID)

Statement of Additional Information (SAI)

Application Form

Factsheet

One Pager

Scheme Factsheet

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Product Label & Riskometer#

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This product is suitable for investors who are seeking*:

Income over short to medium term
Investment primarily in securities issued by Scheduled Commercial Banks (SCBs), Public Sector undertakings (PSUs), Public Financial Institutions (PFIs), Municipal Corporations and such other bodies

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

#The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.

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Frequently Asked Questions

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Yes, banking & PSU debt schemes are relatively stable as they invest in debt securities of banks and PSUs that are government-backed or owned.

No. These funds do have a lock-in period. They are suitable for investors with a short to medium term investment horizon.

To invest in these funds, you can either visit the AMC website and select your preferred fund or take assistance from a broker or intermediary platform and invest through SIP or lumpsum.

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