Breaking news: Bajaj Finserv to launch Mutual Fund business

Bajaj Finserv receives approval from SEBI to launch its mutual fund operations, adding a new asset manager to India's mutual fund industry, with Nimesh Chandan heading the investment management function at BFAM, and competition expected to increase with the entry of more asset managers in the near future.

Bajaj Finserv mutual fund schemes

Bajaj Finserv, a prominent financial services company in India, has received the green light from the Securities and Exchange Board of India (SEBI) to launch its mutual fund operations, completing its range of financial solutions for retail customers.

After securing approval from SEBI, Bajaj Finserv Asset Management (BFAM) is all set to launch a range of mutual fund schemes across active and passive segments under the Bajaj Finserv Mutual Fund (BFMF) banner.

New Asset Manager in the Indian Mutual Fund Industry

As of January 31, 2023, the Indian mutual fund industry manages assets worth Rs 39.62 trillion across 42 asset management companies. The entry of Bajaj Finserv Mutual Fund adds to the list of asset managers, providing investors with more options to choose from.

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In recent years, the competition in the mutual fund industry has increased with the entry of new fund houses such as WhiteOak Capital, Samco, NJ, and Trust. Additionally, industry observers predict that Zerodha, Unifi Capital, and other asset managers will soon receive licenses to manage money, further intensifying the competition.

Nimesh Chandan Heads the Investment Management Function at BFAM

BFAM has appointed Nimesh Chandan, who previously served as head of equities at Canara Robeco AMC, to head its investment management function. Given the growing awareness among investors to stay invested over the longer term, the timing is ideal for the company to build its mutual fund offerings for investors.

Their philosophy of being future-focused and technology-driven is reflected in their mutual fund business, which has a win-win approach for their partners, with a business model focused on creating long-term returns for investors.

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In a statement, Sanjiv Bajaj, the Chairman & Managing Director of Bajaj Finserv, expressed his confidence in the growing recognition of mutual funds in India, fueled by a resurgent economy, increasing investor confidence, and easy access to digital financial services. 

He emphasized the strategic importance of SEBI's approval to Bajaj Finserv, as it allows the company to offer a comprehensive range of financial solutions to retail customers. Furthermore, he expressed his belief that under the leadership of Ganesh Mohan, the mutual fund business will bring a fresh perspective to investing, resulting in sustained long-term wealth creation.

According to Ganesh Mohan, CEO of Bajaj Finserv Asset Management Limited, the mutual fund business is in line with the group's forward-looking and technology-driven philosophy. With a focus on innovation and a mutually beneficial approach to partnerships, our business model is geared towards generating long-term returns for our investors. 

The Excitement in the Stock Market

Shares of Bajaj Finserv rose after the announcement, with the stock quoting at Rs 1362 on the National Stock Exchange (NSE), higher by approximately 1.26% from the previous close. It hit an intraday high of Rs 1385.95 in early deals before wiping out some gains. This indicates investor confidence in the company's new venture. However, it closed with a price of Rs 1342.

Wrapping Up

Bajaj Finserv's approval to commence mutual fund operations marks a strategic milestone for the company. With Nimesh Chandan at the helm of the investment management function, the company is poised to revolutionize the investment landscape by adopting a fresh approach focused on long-term wealth creation for its investors.

The entry of Bajaj Finserv into the Indian mutual fund industry increases competition and provides investors with more options to choose from. The surge in Bajaj Finserv's stock price following the announcement is a testament to investor confidence in the company's growth prospects.

Undoubtedly, it's an exciting time for Bajaj Finserv and the Indian mutual fund industry, with the potential for innovation and growth on the horizon.

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