Is the Bajaj Finserv Low Duration Fund NFO a good investment option?

Bajaj Finserv Low Duration Fund

NFO

Debt

NFO Starts On	NFO Closes On	Risk Type
09-02-26	16-02-26	Moderate

Invest Now

This is an debt fund with NIFTY Low Duration Debt Index A-I as its benchmark. The risk level for this fund is categorised as Moderate.

Category of Scheme

Low Duration Fund

Benchmark

NIFTY Low Duration Debt Index A-I

Min. SIP Amount

₹1000

Benefits of Investing in Bajaj Finserv Low Duration Fund

Short-term avenue

The fund can be a suitable place to park funds for short-term goals

Maturity profile

Short maturity profile makes the fund less sensitive to interest rate changes compared to other debt funds.

Liquidity and flexibility

Short maturity profile enables efficient liquidity management for investors.

Investment Objective

The investment objective of the Scheme is to generate optimal returns for its investors through a portfolio constituted of debt and money market securities. The Macaulay duration of the portfolio is managed between 6 months and 12 months, resulting in a low duration investment with relatively high interest rate risk and moderate credit risk. The Scheme seeks to offer a short-term savings avenue with low risk while balancing yield and liquidity.

However, there is no assurance that the investment objective of the Scheme will be achieved.

Asset Allocation

Instruments	Indicative allocations (% of total assets)
Instruments	Minimum	Maximum
Debt and Money Market Instruments* (including Triparty Repos on Government Securities or treasury bill & Repo, units of mutual funds) such that the Macaulay duration of the portfolio is between 6 months and 12 months.	0%	100%

*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.

Who Should Invest in Bajaj Finserv Low Duration Fund?

The fund may be suitable for:

Investors who want an investment avenue for near-term goals or parking of surplus funds.
Investors looking for the potential for regular income from their investments.
Corporates managing short-term cash flows.
Investors looking to park surplus funds and gradually transfer them into equity or hybrid funds through a systematic transfer plan (STP).

Fund Managers

Nimesh Chandan

Chief Investment Officer

View in detail

Siddharth Chaudhary

Head – Fixed Income

View in detail

Fund Details

Type of Scheme

Bajaj Finserv Low Duration Fund

An open ended low duration debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 6 months to 12 months (please refer to page no. 34 of the SID)# with relatively high interest rate risk and moderate credit risk.

# Please refer to the page number of the Scheme Information Document on which the concept of Macaulay Duration has been explained.

Minimum Additional Purchase Amount

On Ongoing basis

Rs. 1000/- and in multiples of Re. 1/- thereafter.

Minimum Redemption/switch out amount

Re. 1 and in multiples of Re. 0.01/- or the account balance of the investor, whichever is less.

Minimum Application Amount

During NFO:

Minimum application amount (lumpsum): Rs. 5000/- and in multiples of Re. 1/- thereafter. Systematic Investment Plan (SIP): Rs. 1000 and above: minimum 6 instalments.

During ongoing offer

Fresh Purchase (lumpsum): Rs. 5000/- and in multiples of Re. 1/- thereafter Systematic Investment Plan (SIP): Rs. 5000 and above: minimum 6 instalments. Minimum amount for switch-in: Rs. 5000 and in multiples of Re. 1.
Two-Factor Authentication will be applicable for subscription as well as redemption transactions in the units of Mutual Fund.
For more information, please refer SAI.

Load Structure/Lock-In Period

Entry Load:Nil

Exit Load:Nil

Plan

Bajaj Finserv Low Duration Fund – Direct Plan
Bajaj Finserv Low Duration Fund – Regular Plan

NFO Period

NFO opens on: February 09, 2026
NFO closes on: February 16, 2026

Options/Sub-Option

Options:Growth
Income Distribution cum Capital Withdrawal (IDCW) option with Payout of Income Distribution cum Capital Withdrawal sub-option, Reinvestment of Income Distribution cum Capital Withdrawal sub-option and Transfer of Income Distribution cum Capital Withdrawal sub-option.
The Scheme will have a common portfolio across various Plans/Options/Sub-options.
Investors are requested to note that Growth and IDCW Option (Payout, Reinvestment and Transfer) under Regular and Direct Plans will have different NAVs. These NAVs will be separately declared.
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Direct Plan. The AMC shall endeavour on best effort basis to obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor. In case the correct code is received within 30 calendar days, the AMC shall reprocess the transaction under Regular Plan from the date of application without any exit load.
Bajaj Finserv Low Duration Fund - Direct Plan is only for investors who purchase /subscribe units in a Scheme directly with the Fund.
Default option will be Growth Option.
Default sub-option will be Reinvestment of Income Distribution cum capital withdrawal sub-option.

Potential Risk Class (PRC)

The PRC matrix identifies the highest amount of potential risk that a debt mutual fund can assume.
This regulation was implemented by SEBI on December 1, 2021, making it essential for fund houses to categorize all new and existing schemes under a potential risk class (PRC) matrix.

Product Label and Riskometer

This product is suitable for investors who are seeking*:

income over short term
to generate income/capital appreciation through investments in low duration debt and money market instruments

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

#The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.

Documents

Presentation

Application Form

Key Information Memorandum (KIM)

Scheme Information Document (SID)

Statement of Additional Information (SAI)

Bajaj Finserv Low Duration Fund: Overview

The Bajaj Finserv Low Duration Fund is an open-ended debt scheme investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 6 and 12 months. Investors who typically allocate to liquid or money market funds may consider investing incrementally in this fund to potentially benefit from market volatility or rate cut cycles, without significantly changing the duration of their portfolios.

The fund may also be suitable for investors seeking the potential to benefit from any downward movement in rates without taking exposure to long-duration instruments. The fund may also serve as an avenue to park surplus funds or for short-term goals.

How does Bajaj Finserv Low Duration Fund work?

The Bajaj Finserv Low Duration Fund will invest across money market instruments, corporate bonds, and non-convertible debentures. It will allow selective exposure to securities beyond one-year maturity (while maintaining the required Macaulay duration of 6 to 12 months) to enhance return potential. Fund managers may actively manage the portfolio by adjusting maturity, credit exposure, and instrument selection based on interest rate conditions and liquidity considerations. Low duration fund returns are influenced by factors such as interest rate movements, credit quality of holdings, and prevailing market conditions, and may vary over time.

Bajaj Finserv Low Duration Fund - Regular & Direct Plans

Those investing in the Bajaj Finserv Low Duration Fund can choose between two plans:

Regular plan

A regular plan involves investing through a mutual fund distributor who supports investors with scheme selection, application processes, and transactions. The expense ratio for this plan is typically higher, as it includes distributor commissions paid by the asset management company. However, investors receive guidance that may help them align their investments with their financial goals and risk profile.

Direct plan

A direct plan is designed for investors who are comfortable making and managing their own investment decisions. These plans generally have a lower expense ratio, which may contribute to higher net returns over the long term. However, investors need to research market conditions, make scheme selections, and monitor their investments independently.

How to invest in Bajaj Finserv Low Duration Fund NFO?

You can invest in the Bajaj Finserv Low Duration Fund during the NFO period (February 9, 2026 to February 16, 2026) in the following ways:

Online: You can visit Bajaj Finserv AMC’s official website and navigate to the transaction portal from the ‘Invest Now’ button on this page or the Login/Register tab on the home page. There, you can invest through a seamless and secure digital process. You can also invest through an aggregator platform, on MF Utility, or through a Registrar and Transfer Agent.

Offline: You can fill out the application form and submit it at the nearest official point of acceptance (OPAT) of Bajaj Finserv AMC. If you’re investing through a distributor, they will typically help you with filling out and submitting the application form.

Once the NFO period ends, the scheme will re-open for subscription in a few working days. The investment process and options will remain the same.

Taxation on Bajaj Finserv Low Duration Fund

Capital gains and income from the Bajaj Finserv Low Duration Fund will be taxable as follows:

Capital gains: From April 1, 2023, all capital gains on debt mutual funds are deemed to be short-term capital gains, regardless of the holding period. They are taxed as per the investor’s slab rates (plus applicable surcharge and cess).
Income Distribution cum Capital Withdrawal (IDCW): IDCW payouts are also taxed as per the investor’s income tax slab.

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Frequently Asked Questions

The suitability of this fund depends on the investor’s financial goals, risk appetite, investment horizon, liquidity needs, and overall portfolio allocation. The fund may be suitable for investors seeking a relatively stable investment avenue for short-term goals.

A low duration fund is a debt mutual fund that invests in debt and money market instruments while maintaining a portfolio Macaulay duration of 6-12 months. Such a fund seeks to manage interest rate risk while generating accrual-based returns over a short time horizon.

The portfolio Macaulay duration of a low duration mutual fund is 6 to 12 months. It may be suitable for short-term goals.

The scheme’s New Fund Offer period begins on February 9, 2026, and ends on February 16, 2026. The scheme will reopen for subscription after a few working days.

While they seek to maintain relative stability and manage interest rate risk, low duration debt funds are not risk-free – as with all market-linked instruments, returns are not guaranteed and low duration fund performance depends on market conditions.

The minimum investment amount may vary from one fund house to another. For the Bajaj Finserv Low Duration Fund, the minimum SIP amount is Rs. 1,000 (with minimum six instalments). It is recommended to check the scheme documents for up-to-date information and terms and conditions.

A low duration fund is a scheme that invests in debt and money market securities while maintaining a Macaulay duration of 6 to 12 months for its portfolio. It falls under the category of debt mutual funds.

The low duration fund taxation structure is the same as that of all debt funds. Capital gains from low duration funds are taxed as per an investor’s income tax slab. Income distributed to investors who opt for the IDCW option is also taxed as per applicable slab rates.