Reason to consider investing in Bajaj Finserv Equity Savings Fund
New Bajaj Finserv Equity Savings Fund Offers Balanced Investment Strategy
Bajaj Finserv Asset Management Limited has introduced a new mutual fund scheme, the Bajaj Finserv Equity Savings Fund. This fund is designed for investors seeking a balance of growth, stability, and flexibility.
The Bajaj Finserv Equity Savings Fund follows an actively managed hybrid investment strategy that targets relatively conservative investors. Its portfolio combines growth-oriented equities, low-risk arbitrage opportunities, and high-quality fixed income instruments.
The equity allocation in the fund ranges from 10-40% under normal conditions, selected using a Growth at Reasonable Price (GARP) approach. This strategy aims to provide potential long-term capital appreciation with controlled volatility. Additionally, the fund maintains a minimum of 65% overall equity exposure (including arbitrage) to qualify as an equity-oriented scheme, ensuring favorable tax treatment.
One of the unique features of the Bajaj Finserv Equity Savings Fund is its low-risk arbitrage strategy. This approach aims to generate consistent, low-volatility returns by exploiting price differences across markets.
The fund also invests in high-quality fixed income instruments, including AAA-rated and sovereign securities, for stable income and reduced risk exposure.
The Bajaj Finserv Equity Savings Fund offers a notable tax efficiency advantage. With a minimum of 65% equity exposure, the fund qualifies for long-term capital gains tax at 12.5% (with exemption up to Rs 1.25 lakh per year), making it notably tax efficient for higher-tax-bracket investors.
As the fund was launched very recently in July 2025, established performance data is not yet available. However, the fund aims to deliver consistent, inflation-beating returns with lower volatility compared to pure equity funds, leveraging its balanced allocation and active management.
The Bajaj Finserv Equity Savings Fund can be suitable for first-time mutual fund investors looking for a low-risk entry into equity funds, retired individuals wanting low volatility and relatively better returns than traditional investment options, cautious investors who want both relative stability and some returns, and investors shifting out of equity and looking for a temporary but productive parking space.
Investors can park their money in a low-volatility fund while still getting some exposure to equity with the Bajaj Finserv Equity Savings Fund. One of the ways to invest in the fund is through a Systematic Investment Plan (SIP).
To summarize:
- The Bajaj Finserv Equity Savings Fund follows an actively managed hybrid investment strategy.
- Its portfolio combines growth-oriented equities, low-risk arbitrage, and high-quality fixed income instruments.
- The fund's equity allocation ranges from 10-40%, selected using a Growth at Reasonable Price (GARP) approach.
- The fund maintains a minimum of 65% overall equity exposure to qualify as an equity-oriented scheme.
- The fund offers a notable tax efficiency advantage, with long-term capital gains tax at 12.5% (with exemption up to Rs 1.25 lakh per year).
- The New Fund Offer of the Bajaj Finserv Equity Savings Fund opened on 28 July 2025 and will end on 11 August 2025.
For investors seeking a tax-efficient, relatively conservative equity exposure with balanced risk and income generation potential, the Bajaj Finserv Equity Savings Fund could be an ideal choice.
Investing in the Bajaj Finserv Equity Savings Fund allows for personal-finance management by offering a tax-efficient, balanced investment strategy that combines growth-oriented equities, low-risk arbitrage, and high-quality fixed income instruments. This fund, designed for relatively conservative investors, follows a finance approach that aims to deliver consistent, inflation-beating returns with lower volatility compared to pure equity funds.
