3 YearsGoing beyond banks
The fund expands beyond traditional banking and also invests in NBFCs, insurers, AMCs, and fintech companies, among others.
Read MoreBAJAJ ASSET MANAGEMENT LIMITED.
BAJAJ ASSET MANAGEMENT LIMITED.
Megatrend InvestingSectoral exposure
The objective of the Scheme is to generate long term capital appreciation by predominantly investing in equity and equity related securities of companies engaged in Banking and Financial Services.
However, there is no assurance that the investment objective of the Scheme will be achieved.
The Bajaj Finserv Banking and Financial Services Fund is an equity scheme that invests in companies across the Banking, Financial Services, and Insurance (BFSI) sectors. Unlike conventional funds that primarily focus on lending businesses, this fund takes a broader approach by including banks, NBFCs, insurance providers, fintech players, and capital market institutions in its portfolio.
The fund follows a Megatrends strategy, aiming to identify and invest in emerging opportunities driven by:
By focusing on these structural growth drivers, the fund seeks to build a diversified portfolio positioned to tap into India’s financial transformation story over the long term.
Going beyond banks
The fund expands beyond traditional banking and also invests in NBFCs, insurers, AMCs, and fintech companies, among others.
Read MoreRapidly growing sector
India’s Banking and Financial Services sector is transforming at an unprecedented pace, with a nearly 50X increase in market capitalization* over the past two decades. Source: MOFSL Report as published in April 2025.
Read MoreMegatrends strategy
The fund invests in long-term structural shifts powering this sector, such as UPI adoption, financial inclusion, fintech innovation, and a growing insurance industry.
Read More
Siddharth Chaudhary 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 Head – 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.
Shri Sayan Das Sharma joined the AMC on 02 November 2022 as Senior Business Analyst. Prior to joining the AMC, Shri Sayan Das Sharma was associated with Arthya Wealth & Investments (PMS) from April 2021 to October 2022. Before joining Arthya Wealth & Investments (PMS), he was also associated with Bank of Baroda Capital Markets Ltd from November 2018 to March 2021. He was also associated with Crisil Limited from September 2011 to October 2018. He has work experience of over 14 years in financial markets in Research area.
Mr. Kishore Agarwal joined the Company in January 2024 as a Senior Research Analyst and has been actively engaged in supporting the Fund Manager through fundamental research and the origination of actionable investment ideas across market capitalizations, with deep specialization in the Banking and Financial Services sector.
Upon his appointment as Fund Manager and Key Personnel, he will assume additional responsibility for bottom-up security selection, portfolio construction, position sizing, and active portfolio churn management, with a disciplined focus on delivering risk-adjusted returns vis-à-vis the benchmark.
Prior to joining the Company, he was associated with CRISIL Limited and Visible Alpha (now S&P Global Market Intelligence).
He brings over 12 years of investment management experience spanning fundamental equity research, bottom-up stock selection, attribution analysis, portfolio construction, and performance evaluation, and has consistently contributed to alpha generation through fundamental research, financial modelling, and deep investment-driven insights.
| Instruments | Indicative allocations (% of total assets) | |
| Minimum | Maximum | |
| Equity and Equity related instruments of companies engaged in Banking and Financial Services sector# or allied activities | 80% | 100% |
| Equity and Equity Related securities of companies other than in Banking and Financial services sector# or allied activities | 0% | 20% |
| Money market instruments*, other liquid instruments, Units of InvITs, Units of Gold ETFs and Silver ETFs and units of Liquid, Overnight and Money Market Mutual Fund | 0% | 20% |
#Financial Services Sector companies include:
This above list is only indicative, and the Scheme will explore to invest in new and emerging areas of Financial Services. The Scheme will invest in companies engaged in the Financial Services sector from Sector list provided by AMFI/SEBI/NSE.
*Money market instruments will include commercial papers, commercial bills, Triparty REPO, Reverse Repo and equivalent and any other like instruments as specified by SEBI and Reserve Bank of India from time to time
Bajaj Finserv Banking And Financial Services Fund
An open ended equity scheme investing in Banking and Financial Services sector
During ongoing offer:
Nil
| Particulars | Exit load | |
|---|---|---|
| if units are redeemed / switched out within 3 months from the date of allotment | 1% of applicable NAV. | |
| if units are redeemed/switched out after 3 months from the date of allotment | Nil | |
to view Total Expense Ratio
A Banking and Financial Services Fund, also called a BFSI mutual fund, is a sectoral equity mutual fund that invests mainly in India’s financial-services companies. These may include banks, non-banking financial companies (NBFCs), insurers, asset management companies, stockbrokers, exchanges, fintech businesses and payment companies.
The fund provides exposure to the wider financial-services sector, rather than investing only in banks. Since it focuses on one sector, factors such as interest rates, credit demand, asset quality, regulations and economic activity can influence its performance.
India’s banking, financial services, and insurance sector is changing quickly, supported by rising financial access, Banking and financial services support activities ranging from buying a home to running a business. Several long-term changes are influencing demand across the sector:
These trends can create opportunities across the sector, although individual companies and market cycles may perform differently.
The fund uses research to narrow a broad market into a focused portfolio of financial-services companies:
The scheme can invest across large cap, mid cap and small cap companies without following a fixed market-cap bias.
Before adding a sectoral fund, consider how it would fit alongside your existing investments:
The fund may suit investors who want focused exposure to India’s financial-services sector, have an investment horizon of at least five years and are comfortable with its Very High Risk classification.
It may be considered as a sector-focused allocation within an already diversified portfolio. Investors seeking broad equity diversification through a single scheme may prefer to assess diversified equity funds instead.
You can invest through an SIP or make a one-time investment, either online or offline.
You may also invest through a registered mutual fund distributor.
Both plans invest in the same portfolio and follow the same investment objective. The main differences concern how you invest and the expenses charged:
| Feature | Direct Plan | Regular Plan |
| How you invest | Directly with Bajaj AMC | Through a mutual fund distributor |
| Distributor support | Not included | May include transaction and servicing assistance |
| Distributor commission | Not included in scheme expenses | Included in scheme expenses |
| Expense ratio | Generally lower because distributor commission is not included | Generally higher because distributor commission is included |
| Suitable for | Investors comfortable managing their investments independently | Investors who prefer assistance from a distributor |
Both plans offer Growth and IDCW options. Switching between them is treated as a redemption from one plan and a purchase into the other for tax purposes. The scheme’s KIM states that this switch does not attract an exit load.
The scheme is taxed as an equity-oriented mutual fund:
Applicable surcharge and health and education cess are additional.
The tax information in this article is based on prevailing laws at the time of publishing the article and is subject to change. Please consult a tax professional or refer to the latest regulations for up-to-date information.
Its suitability depends on your portfolio, investment horizon and risk appetite. The fund may suit investors seeking focused BFSI exposure for at least five years and who are comfortable with its Very High Risk classification.
A BFSI mutual fund is a sectoral equity fund that invests mainly in Banking, Financial Services and Insurance companies. Its portfolio may include banks, NBFCs, insurers, asset managers, exchanges, housing-finance companies, brokers and fintech businesses.
The scheme must invest 80% to 100% of its assets in equity and equity-related securities of banking, financial-services or allied businesses. It may also invest within the other limits stated in its scheme documents.
A Banking and Financial Services Fund invests predominantly in one sector. A diversified equity fund invests across several sectors, reducing its dependence on a single industry.
Yes. As of 31 August 2026, the minimum fresh one-time investment is ₹500. An SIP can also start at ₹500 with at least six instalments. Additional purchases start at ₹100.
There is no mandatory lock-in. As of 31 August 2026, a 1% exit load applies if units are redeemed or switched out within three months of allotment. No exit load applies after three months.
The scheme is classified as Very High Risk on the Riskometer. This reflects its equity exposure and concentration in the banking and financial-services sector.
The Direct Plan-Growth NAV was ₹10.07 as of 28 August 2026. NAV differs across Direct and Regular Plans and Growth and IDCW options, so investors should check the live scheme page for the latest value.
As of 31 July 2026, the six largest holdings were ICICI Bank, HDFC Bank, State Bank of India, Bajaj Finance, Kotak Mahindra Bank and Axis Bank. The holdings may change as the portfolio is actively managed.
As of 31 July 2026, the portfolio held 97.83% in equity and 2.17% in debt and cash. The market-cap allocation included 63.58% in large cap, 9.58% in mid cap and 23.77% in small cap stocks.
The scheme was allotted on 1 December 2025 and had not completed one year as of 31 August 2026. Its returns are market-linked and should be viewed using the latest dated performance information on the official scheme page.
Past performance may or may not be sustained in future.
Yes. The switch can be submitted according to the scheme’s transaction process. It is treated as a redemption and fresh purchase for tax purposes, although the scheme’s current KIM states that no exit load applies when switching between its Direct and Regular Plans.
The fund does not offer a fixed or assured return. Its results depend on the companies held, BFSI-sector conditions, market movements, portfolio decisions and the period for which the units remain invested.
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Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj AMC, we endeavour to combine the best of these edges.
