Diversifying With Confidence: Revamp Your Portfolio Savings+

Savings+ is a unique facility offered by Bajaj Finserv Asset Management Limited that seeks to give investors a way to combine savings plus the return potential of mutual funds.

Through Savings+, investors can park surplus funds lying idle in their savings account in Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund. Both are highly liquid and low-risk/low to moderate risk mutual funds with a portfolio comprising very low-duration debt and money market securities. This makes them suitable for investors seeking a relative stable investment route with a higher return potential than traditional savings accounts.

This article tells you more about how Savings+ can help you diversify and revamp your portfolio.

• Table of contents

1. What is Savings+
2. Diversifying with Savings+
3. How to invest in Savings+

What is Savings+?

Savings+ gives investors a convenient way to potentially earn modest returns on their surplus funds – money that is typically left after bills and expenses have been paid.

Instead of leaving these funds idle in a savings account, where interest rates are less, you can use Savings+ to invest the money in Bajaj Finserv Overnight Fund or Bajaj Finserv Liquid Fund.

Overnight funds are debt mutual funds that invest in fixed-income securities with a maturity of one business day. Liquid funds, meanwhile, invest in fixed-income securities with a maturity of up to 91 days. These include commercial papers, certificates of deposit and treasury bills. They have the potential to yield superior returns to savings accounts.

These are also relatively stable because the short maturity of the underlying securities mitigates some of the risks related to debt investments. However, returns are not guaranteed.

Both the schemes, Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund offer instant redemption of up to Rs 50,000 or 90% of your investments, whichever is lesser.

Diversifying with Savings+

Here are some ways in which Savings+ can revamp your portfolio strategy:

• A starting point for mutual fund investments: Those who have never invested in the financial market can use Savings+ to tap into the potential benefits of mutual funds through low-risk debt funds.
• For emergency or short-term needs: Investors who have some mutual fund investments can consider using Savings+ for building an emergency corpus. The instant redemption feature makes funds available at a moment’s notice. It can also be used as a short-term investment avenue offering reasonable return potential and carrying low risk.
• For portfolio stabilisation: Equity investors can use Savings+ to build a corpus for sudden expenses or a rainy-day reserve that is liquid and relatively stable.

How to invest in Savings+

You can invest or explore the facility on the Savings+ page on www.bajajamc.com and provide your bank account details. Once your account is linked, you are shown your surplus amount. You can then decide how much to invest in the Bajaj Finserv Overnight Fund or the Bajaj Finserv Liquid Fund. The minimum investment amount is just Rs 100.

So, you can park all your surplus funds, or just a portion, to see how it can potentially grow. Investors have the flexibility to decide how much and when they want to invest. So, they can alter their investment amount as per their expenses. There is no fixed SIP amount that you must set aside every month. However, a monthly reminder is sent to investors encouraging disciplined investing.

Conclusion
Saving+ offers ease and flexibility of investing and the potential for enhanced returns compared to savings accounts. It can be a suitable way to park surplus funds instead of leaving them idle in your bank account.

FAQs

What is Savings+?
Savings+ is an investment solution that enables investors to park their surplus funds in Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund. These mutual funds offer superior return potential as compared to savings accounts.

What is a liquid fund?
It is a type of mutual fund that invests in short-term securities, like treasury bills (T-Bills) and money market funds, that have a maturity of up to 91 days.

What is an overnight fund?
It is a type of debt mutual fund that invests in overnight debt securities.

Who should invest in savings+?
Saving+ is a suitable option for investors who want to deploy their surplus funds in low-risk mutual funds instead of leaving it idle in their savings account. It offers higher return potential than bank accounts along with high liquidity and relative stability.

Is Savings+ risk-free?
Savings+ is not risk free. Returns depend on market conditions. Standard risk factors affecting debt mutual funds, such as interest rate risk and credit risk, apply to Savings+ investments as well. However, the low duration of the portfolio mitigates these risks to a significant extent.

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.