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What is Savings+?

Savings+ by Bajaj Finserv Asset Management Ltd is a unique investment solution that helps investors combine relative stability with the potential for reasonable returns. It enables investors to seamlessly invest the surplus funds lying idle in their bank accounts into the Bajaj Finserv Liquid Fund or Bajaj Finserv Overnight Fund.

Both are low-risk fixed-income funds with a very short maturity period and the potential to offer returns higher than what a savings account typically offers. Savings+ thus seeks to bridge the gap between saving and investing.

Why Savings+ is an attractive investment option

Through Savings+, investors can potentially earn higher returns on their idle money than they typically would in their savings account. The money is invested in funds, which has a portfolio comprising money market securities with a maturity of one day, and liquid funds, which invest in fixed-income securities with a maturity of up to 91 days.

These mutual funds are relatively stable because of the high quality of underlying securities and low maturity. They also have better return potential than savings accounts. For instance, liquid funds generated an average one-year return of 7.16%* as on May 17, 2024, as compared to the 3%-4% fixed returns in savings accounts of most major banks. However, savings accounts are virtually risk-free and offer guaranteed returns, whereas the returns on liquid and overnight funds depend on market performance.

*Past performance does not guarantee future returns. Past performance may or may not be sustained in future.

Savings+ thus helps conservative investors combine the benefits of both avenues by choosing how much or little to invest in the money market.

Investors can link their bank account to Savings+ to see their surplus funds and choose how much to invest. They can also invest additional funds whenever they wish to – they do not need to adhere to a fixed schedule or invest in a fixed amount every month.

Liquidity and redemption

A significant advantage of Savings+ is its high liquidity. Savings+ offers instant redemption of up to 90% of your investments, or Rs 50,000 – whichever is lower. The balance amount is credited to your bank account in one business day, if redeemed.

Who should consider Savings+?

Savings+ is a suitable investment option for a wide range of individuals, especially those seeking to balance relative stability with reasonable return potential. It can be considered by conservative investors, those just starting on their financial journey, or anyone looking to build an emergency fund through a relatively stable investment avenue with modest return potential.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.