Mutual Funds By Bajaj Finserv AMC: Your Path To Long-Term Potential Wealth Creation

Mutual funds are commonly used by investors seeking diversification, professional portfolio management, and alignment with defined financial objectives. Mutual fund units represent proportionate ownership in a pooled portfolio of securities and are valued through the net asset value (NAV).

This article explains the fundamentals of mutual funds, how they operate, the broad categories of schemes, and how they may support long-term potential wealth creation when used as part of a structured investment approach.

Table of contents

• What are mutual funds? Understanding the basics with Bajaj Finserv AMC
• How do mutual funds work?
• Key advantages of investing in mutual funds
• Types of mutual funds offered by Bajaj Finserv AMC
• Benefits of investing with Bajaj Finserv AMC
• How to start your mutual fund investment journey with Bajaj Finserv AMC
• Important considerations and risks in mutual fund investing

What are mutual funds? Understanding the basics with Bajaj Finserv AMC

A mutual fund is a pooled investment vehicle that collects money from multiple investors and invests it in a portfolio of securities such as equity shares, debt instruments, or a combination of both, in line with the scheme’s stated investment objective. Each mutual fund scheme follows a defined mandate, including asset allocation, risk profile, and investment universe.

How do mutual funds work?

When investors invest in a mutual fund scheme, the collected corpus is allocated across securities according to the scheme’s investment strategy. These investments may generate potential returns through capital appreciation, interest income, or IDCW (income distribution cum capital withdrawal), depending on the nature of the underlying assets and scheme structure.

The value of a mutual fund scheme is reflected in its NAV, which is calculated on every business day. Investors are allotted units based on the NAV applicable on the transaction date. The value of these units may fluctuate over time due to market movements and changes in the value of underlying securities.

Also Read: How to Build a Mutual Fund Portfolio

Key advantages of investing in mutual funds

• Diversification: By investing across multiple securities and issuers, mutual funds may help spread risk compared to holding a single security, subject to the scheme’s asset allocation.
• Professional management: Portfolios are managed by experienced fund managers who follow defined research and risk management frameworks.
• Liquidity: Most open-ended mutual fund schemes allow investors to redeem units on any business day, subject to applicable exit loads, settlement timelines, and scheme terms.
• Transparency: Mutual funds in India are regulated by SEBI, with requirements around disclosures, valuation, and investor protection.
• Affordable entry: Many schemes allow investments with relatively small amounts, particularly through Systematic Investment Plans (SIPs).

Types of mutual funds offered by Bajaj Finserv AMC

Bajaj Finserv AMC offers mutual fund schemes across categories to address varying investor requirements and risk appetites.

Equity schemes: Focused on long-term growth potential

Equity schemes invest predominantly in equity and equity-related instruments. These schemes are classified as very high risk and may be considered by investors with a high risk appetite and a long-term investment horizon, looking to build wealth over time. You can see all our equity schemes here.

Debt schemes: Focused on income and relative stability

Debt schemes primarily invest in fixed income instruments such as government securities, corporate bonds, and money market instruments. These schemes may be used for income-oriented or shorter-duration allocations, while recognising interest rate risk, credit risk, and taxation considerations. Returns from debt schemes are taxable as per applicable income tax rules, without indexation benefits. For the full list of Bajaj Finserv AMC’s debt funds, click here.

Hybrid schemes: Combining equity and debt exposure

Hybrid schemes invest in a mix of equity and debt instruments. Where equity exposure exceeds 65%, such schemes are classified as very high risk. They may be considered by investors seeking a balance between long-term growth potential and relative stability, subject to risk tolerance. See all of Bajaj Finserv AMC’s hybrid schemes here.

Passive funds

Index funds and ETFs aim to replicate the performance of a specified market index, such as the Nifty 50. These passively managed schemes seek to track index performance over time, subject to tracking error and market movements. You can see Bajaj Finserv AMC’s index fund offerings here and ETFs here.

Benefits of investing with Bajaj Finserv AMC

Investing in mutual funds with Bajaj Finserv AMC may provide potential benefits such as:

• Access to multiple scheme categories across equity, debt, hybrid, and index segments
• Flexibility to invest through SIPs or lumpsum modes, subject to scheme terms
• Secure and seamless digital platform for transactions and account access
• Portfolio management based on defined research and investment processes
• Educational resources to support informed decision-making
• Access to unique investment strategies such as Megatrend investing and our in-house InQuBe investment framework.

How to start your mutual fund investment journey with Bajaj Finserv AMC

Starting your Bajaj Finserv AMC investment journey is easy and involves following steps:

Identifying financial objectives and risk appetite

Investors may first assess financial goals, time horizon, liquidity requirements, and comfort with NAV fluctuations. This assessment may help in selecting schemes aligned with individual requirements.

Completing KYC and selecting schemes

Know Your Customer (KYC) compliance is mandatory for mutual fund investments. Once completed, investors may select schemes after reviewing scheme information documents and risk factors.

Choosing between SIP and lumpsum investments

Investments may be made through SIPs or lumpsum routes. The choice depends on cash flow patterns, investment horizon, and individual preferences.

Making the transaction

Take the help of a mutual fund distributor or invest independently through our quick and secure digital process.

Also Read: Equities vs Mutual Funds: Key Differences, Risks & Benefits

Important considerations and risks in mutual fund investing

• Market risk: The value of mutual fund investments, particularly equity-oriented schemes, may fluctuate due to market movements.
• Scheme-specific risks: Each scheme carries risks related to asset allocation, duration, credit exposure, and investment strategy.
• Exit load: Certain schemes may levy exit loads if units are redeemed within a specified period.
• Taxation: Capital gains from mutual fund investments are subject to taxation as per prevailing income tax laws and scheme classification.

FAQs

What is the minimum investment required to start a mutual fund with Bajaj Finserv AMC?

The minimum amount depends on the scheme type. Many schemes allow investments starting from Rs. 500 through Systematic Investment Plan (SIP) or lumpsum, subject to scheme terms.

How do I check the performance of Bajaj Finserv AMC schemes?

NAVs, portfolio disclosures, and performance information are available through official platforms and regulatory disclosures.

Can Non-Resident Indians (NRIs) invest in Bajaj Finserv AMC mutual funds?

Non-resident Indians may invest in mutual fund schemes, subject to regulations, FEMA provisions, and applicable KYC requirements.

What charges are associated with investing in mutual funds through Bajaj Finserv AMC?

Charges include expense ratios, exit loads if applicable, and taxes on capital gains.

How often can I redeem or switch my mutual fund units?

Investors can apply to redeem or switch units of open-ended schemes at any time. Requests are processed on business days at the applicable NAV based on the cut-off time and are subject to scheme terms and redemption timelines.