Going 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 Investing
Sectoral 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% |
| Debt and Money Market Instruments* and Units of Mutual Fund schemes | 0% | 20% |
| Units issued by REITs and InvITs | 0% | 10% |
*Debt instruments shall be deemed to include securitized debts (excluding foreign securitized debt). 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 is a sectoral equity mutual fund that invests primarily in companies within India’s financial sector. This includes banks, NBFCs, insurance companies, fintech firms, stockbrokers, asset management companies, credit card companies, and other businesses involved in lending, investing, insuring, and payments.
It provides exposure to the broader BFSI sector, not just banks. It aims to capture opportunities arising from long-term trends such as rising loan demand, growth in digital payments, increased insurance adoption, higher mutual fund participation, and expanding financial inclusion.
Since the fund is concentrated in one sector, its performance depends on the health of the financial services industry. Factors like interest rates, RBI policies, credit growth, asset quality, regulations, and overall economic conditions can influence returns.
This fund may suit investors who understand sector-based investing, can handle higher short-term volatility, and want targeted exposure to India’s financial services ecosystem. It is best used as a part of a diversified portfolio rather than a standalone equity investment.
India’s banking, financial services, and insurance sector is changing quickly, supported by rising financial access, digital adoption, and growing demand for credit:
*Source: Press Information Bureau, Government of India.
As a BFSI mutual fund, the fund follows a research-led investment process to identify businesses that may benefit from the long-term growth of India’s banking and financial services sector:
You can invest in Bajaj Finserv Banking and Financial Services Fund either online or offline, depending on how you prefer to complete the process.
Online Investment
Offline Investment
A Banking and Financial Services Fund may be suitable for investors who want focused exposure to India’s financial sector and understand that this sector can move through ups and downs. It may work for investors who follow trends such as digital banking, rising loan demand, insurance growth, fintech adoption, and wider financial inclusion.
This fund can also be considered by investors who already have a diversified portfolio and want to add a smaller sector-focused allocation to it. Since it invests in one sector, it is generally better suited for investors with a longer investment horizon, preferably five years or more, and the ability to stay invested through market cycles.
When you invest in the Bajaj Finserv Banking and Financial Services Fund, you have the option to choose between a Direct Plan and a Regular Plan, each designed to suit different types of investors based on their preferences and level of involvement.
A Direct Plan lets you invest directly with Bajaj AMC without a distributor. Since there is no distributor commission in a Direct Plan, its expense ratio is generally lower than the Regular Plan. This may result in a lower cost of investment over time. It suits investors who are comfortable managing their own investments.
A Regular Plan involves investing through a distributor or advisor who can assist with the process and provide guidance. Since their commission is included in the fund’s expenses, the expense ratio is higher than a Direct Plan. It may suit investors who prefer professional support or are new to mutual funds.
Investments in Bajaj Finserv Banking and Financial Services Fund are taxed as equity mutual funds. The tax you pay depends on how long you stay invested before redeeming your units.
If you redeem your mutual fund units within 12 months from the date of allotment, any gains are treated as short-term capital gains. These gains are taxed at 20%, along with the applicable surcharge and cess.
If you redeem your units after holding them for more than 12 months, the gains are treated as long-term capital gains. Gains of up to ₹1.25 lakh in a financial year are exempt from tax. Any gains above this limit are taxed at 12.5%, along with the applicable surcharge and cess.
Bajaj Finserv Banking and Financial Services Fund may suit investors seeking focused exposure to India’s banking and financial services sector, investing in banks, NBFCs, insurance companies, and fintech firms that may benefit from long-term trends such as rising credit demand and digital financial adoption; however, as a sectoral equity fund, it carries higher volatility than diversified funds and is generally better suited for investors with a high risk appetite and a long-term horizon of at least five years.
This fund may be suitable for investors seeking targeted exposure to the BFSI sector and its long-term potential. It may complement a diversified portfolio, provided investors are comfortable with market fluctuations and have a long-term investment horizon.
Yes. You can start investing with a minimum SIP of ₹500 or a lumpsum investment of ₹500, with additional investments allowed in multiples of Re. 1, enabling you to begin with a small amount and build your portfolio gradually.
You can invest online through the Bajaj AMC website, mutual fund platforms, or authorised distributors, choosing either SIP or lumpsum options, or invest offline by submitting an application form at official points of acceptance or through a registered distributor.
The fund invests primarily in equity and equity-related securities of companies in the banking and financial services sector, including banks, NBFCs, insurance companies, asset management firms, fintech companies, and housing finance companies, with an actively managed portfolio that may change based on market conditions and investment strategy.
A BFSI mutual fund is a sectoral equity fund that invests in companies within the Banking, Financial Services, and Insurance (BFSI) sector, such as banks, NBFCs, insurance firms, asset managers, stock exchanges, fintech companies, and housing finance providers. Its performance is closely tied to the financial sector and economic conditions. These funds are suited for investors seeking focused exposure and who can tolerate higher volatility over the long term.
A Banking and Financial Services Fund invests mainly in the BFSI sector, while a diversified equity fund spreads investments across multiple sectors, offering broader allocation and typically lower concentration risk compared to sectoral funds.
Returns are market-linked and depend on the performance of the banking and financial services sector, influenced by factors such as interest rates, economic growth, credit demand, and regulatory changes, with no guaranteed returns and performance varying across market cycles.
As of 2 July 2026, the fund has delivered 7.95% over one month, 12.11% over three months, 0.07% over six months, and 1.76% since inception; since it was launched on 1 December 2025, long-term performance data is not yet available.
Past performance may or may not be sustained in future.
The fund invests in companies across the BFSI sector, including banks, NBFCs, insurance companies, and fintech firms. Since the portfolio is actively managed, holdings may change over time, and the latest details are available in the monthly factsheet published by Bajaj AMC.
The fund primarily invests in equity and equity-related instruments within the BFSI sector, with approximately 62.21% allocated to large-cap stocks, 8.62% to mid-cap stocks, and 25.73% to small-cap stocks as of 31 May 2026, while the remaining portion is held in cash and money market instruments.
As of 2 July 2026, the Growth Plan NAV is ₹10.18, representing the per-unit value of the fund based on the market value of its underlying investments and updated daily.
The expense ratio is the annual fee charged for managing the fund, covering costs such as fund management and administration, and it differs between Direct and Regular Plans, with Regular Plans including distributor commissions; the latest expense ratio is available in the fund’s official documents.
Yes. You can switch between Direct and Regular Plans by submitting a request as per mutual fund guidelines, and such a switch is treated as a redemption and reinvestment, which may have tax implications.
There is no lock-in period, so you can redeem your investment at any time, but an exit load of 1% applies if units beyond the allowed limit are redeemed within three months from allotment, after which no exit load is applicable.
The fund is classified as Very High Risk on the SEBI Riskometer due to its concentrated exposure to equity investments within a single sector, making it suitable for investors who can handle higher volatility and have a long-term investment horizon.
The fund uses a megatrend-based investment approach to identify opportunities within India’s evolving financial ecosystem, focusing on long-term themes such as digital payments, financial inclusion, insurance growth, and fintech innovation, supported by a structured research and risk assessment process.
There is no mandatory lock-in period for this fund. However, exit load may apply if funds are redeemed within a specified timeframe.
The fund may suit investors with a very high risk tolerance and long-term horizon. It is may also suit investors seeking tactical exposure to the banking and financial services sector, or those who believe in the potential growth of India’s financial sector over time.
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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 Finserv AMC, we endeavour to combine the best of these edges.
