Bajaj Finserv Banking and Financial Services Fund

Equity

Regular Growth

NAV	Risk Type
₹--.-- as on 8-05-2025	Very High

Invest Now

This is an equity fund with NIFTY Financial Services TRI as its benchmark. The risk level for this fund is categorised as Very High.

Category of Scheme

Sectoral Fund

Benchmark

NIFTY Financial Services TRI

Min. SIP Amount

₹500

Inception Date

01-12-2025

Benefits of investing in Bajaj Finserv Banking and Financial Services Fund

Going beyond banks

The fund will expand beyond traditional banking and will also invest in NBFCs, insurers, AMCs, and fintech companies, among others.

Rapidly 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.

Megatrends strategy

The fund will invest in long-term structural shifts powering this sector, such as UPI adoption, financial inclusion, fintech innovation, and a growing insurance industry.

Investment Objective

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.

About Bajaj Finserv Banking and Financial Services Fund

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:

Rising digital payment adoption
Expanding financial inclusion
Growing demand for banking and financial products
Increasing insurance penetration
Rapid innovation in financial technology

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.

Bajaj Finserv Banking and Financial Services Fund: Regular and Direct Plans

When you invest in the Bajaj Finserv Banking and Financial Services Fund, you have two plans: Direct Plan and Regular Plan.

Direct Plan: You invest directly with the Bajaj Finserv AMC, without involving any intermediaries or distributors. As a result, there’s no commission or distribution fee involved, which means the expense ratio is lower and your potential returns could be slightly higher over the long term.
Regular Plan: This option involves a distributor who helps you with the investment. The mutual fund company pays a commission to the distributor, which is included in the plan’s expense ratio. That’s why regular plans usually have slightly higher costs compared to direct plans.

How does Bajaj Finserv Banking and Financial Services Fund work?

The Bajaj Finserv Banking and Financial Services Fund follows a structured process to identify potential opportunities within India’s financial sector.

It starts with a broad universe of approximately 1,100 listed stocks.
A megatrend-based filter is then applied to shortlist around 180–200 stocks aligned with long-term sector growth themes.
Key megatrends include the rise of digital finance and financial inclusion, supported by increasing adoption of UPI, digital lending, and initiatives like Jan Dhan.
The fund also focuses on companies benefiting from growing participation across banks, NBFCs, mutual funds, and insurance.
From the shortlisted stocks, the fund selects a final portfolio based on detailed research and risk assessment.

This approach aims to create a diversified portfolio aligned with long-term structural shifts in the financial services sector.

Asset Allocation

Instruments	Indicative allocations (% of total assets)
Instruments	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.

WHO IS THIS FUND FOR?

Investors with higher risk appetite and investment horizon of 5+ years
Investors seeking long term wealth creation through the growth story of Indian Financial Services Sector.
Investors looking to diversify their core portfolios through investment in financial services sector

Fund Managers

Nimesh Chandan

Chief Investment Officer

View in detail

Sorbh Gupta

Head – Equity

View in detail

Siddharth Chaudhary

Head – Fixed Income

View in detail

Fund Details

Type of Scheme

Bajaj Finserv Banking And Financial Services Fund

An open ended equity scheme investing in Banking and Financial Services sector

Minimum Additional Purchase Amount

On Ongoing basis

Rs. 100/- and in multiples of Re. 1/- thereafter.

Minimum Redemption/switch out amount

Rs. 500 and in multiples of Re. 0.01/- or the account balance of the investor, whichever is less.

Minimum Application Amount

During ongoing offer:

Fresh Purchase (lumpsum): Rs. 500/- and in multiples of Re. 1/- thereafter Systematic Investment Plan (SIP): Rs. 500 and above: minimum 6 instalments. Minimum amount for switch-in: Rs. 500 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:

Particulars	Upto 10% of units held
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

Plan

Bajaj Finserv Banking and Financial Services Fund – Direct Plan
Bajaj Finserv Banking and Financial Services Fund – Regular Plan

Options/Sub-Option

Options: Growth
Option Income Distribution cum Capital Withdrawal (IDCW) option with Payout of Income Distribution cum Capital Withdrawal sub-option, Reinvestment of Income Distribution cum Capital Withdrawal suboption 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.
For detailed disclosure on default plans and options, kindly refer SAI.

Product Label and Riskometer

This product is suitable for investors who are seeking*:

wealth creation over long term
to invest predominantly in equity and equity related securities of companies engaged in banking and financial services.

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

Documents

Presentation

Application Form

Scheme Information Document (SID)

Key Information Memorandum (KIM)

Statement of Additional Information (SAI)

One pager

Banking and Financial Services Funds: Overview

Banking and Financial Services Funds are sectoral equity mutual funds that primarily invest in companies operating in the financial ecosystem. These may include banks, non-banking financial companies (NBFCs), insurance firms, fintech players, brokerages, asset management companies, credit card issuers, and other businesses that support lending, payments, and financial intermediation. Because these funds focus on a specific sector, they can provide targeted exposure to themes such as rising credit demand, digital payments growth, and formalisation of financial services in India.

However, the sector’s performance can be influenced by interest-rate movements, credit cycles, regulatory changes, and overall economic conditions. As a result, Banking and Financial Services Funds tend to carry higher sector-concentration risk compared with diversified equity funds.

Such funds may be suitable for investors who have a high-risk appetite, understand sector dynamics, and seek opportunities aligned with India’s long-term economic growth. They are typically suitable as a satellite allocation in a broader portfolio.

Why invest in banking, financial services and insurance sector now?

The sector is seeing rapid transformation, led by policy reforms and increased demand for banking and financial services.
People and businesses across urban and rural areas are using more loans, insurance, and digital financial services.
Initiatives such as UPI and Jan Dhan are boosting financial inclusion, while non-banking financial companies (NBFCs) and fintech platforms are also offering new ways to reach customers.
India is moving towards becoming the world’s third-largest economy by 2030*, of which the BFS sector is expected to be a key driver.
The banking and financial services sector is expected to be one of the key drivers of the country’s growth.
The sector’s valuations are currently below their 14-year average, creating a potentially favourable entry point.[

*Source: Centre for Economics and Business Research (CEBR).

How to invest in Bajaj Finserv Banking and Financial Services Fund

You can invest in Bajaj Finserv Banking and Financial Services Fund both offline and online, directly through Bajaj Finserv Asset Management Ltd or through registered mutual fund distributors or fintech platforms.

To invest online, you can click on the log in/register button on the home page. You can also click on ‘Invest Now’ on this scheme page.
On the investor portal, you can log in with your PAN details or sign up. You can then invest through a quick, straightforward and 100% digital journey.
To invest offline, you can fill out an application form and submit it at any official point of acceptance (OPAT) of the AMC.

What types of investors may consider a banking and financial services fund?

A banking and financial services fund may be suitable for investors who understand market cycles, follow sectoral trends and are comfortable with short-term ups and downs for potentially better long-term gains.

It may also appeal to investors who believe in the potential of India’s journey towards financial inclusion through growing rural credit, digital banking, rising insurance coverage and more.

Such a fund may also be considered as a tactical part of a diversified portfolio that also includes broad market funds and debt or hybrid funds.

A long investment horizon of five years or more is generally suitable for such funds.

Taxation on Bajaj Finserv Banking and Financial Services Fund

Bajaj Finserv Banking and Financial Services Fund follows equity mutual fund taxation. Capital gains from Bajaj Finserv Flexi Cap Fund are taxed based on how long you’ve held the investment.

Short-term capital gains (STCG)
If you sell your mutual fund units within 12 months from the date of allotment, the gains are treated as short-term. These are taxed at 20%, plus any applicable surcharge and cess.
Long-term capital gains (LTCG)
If you sell the units after holding them for more than 12 months, the gains are considered long-term. In this case, gains up to Rs. 1.25 lakh in a financial year are tax-free. Any amount above that is taxed at 12.5%, plus surcharge and cess as applicable.

Frequently Asked Questions

Equity funds tend to be volatile and sectoral and thematic risks carry higher concentration risk because they are exposed to sector-specific risks. So, this fund may be suitable with those for a higher risk appetite, knowledge of sectoral trends, and targeted exposure to the banking and financial services sector. It may also be considered as a part of a diversified portfolio that also has some broad market funds.

Yes, many equity mutual funds allow you to start investing in instalments of Rs. 500 through an SIP (Systematic Investment Plan).

This fund invests mainly in one sector—banking and finance—whereas regular mutual funds usually spread your money across many sectors.

All equity mutual funds require a long investment horizon to manage risks and benefit from potential sector growth.

No. Returns depend on how the financial sector performs. Mutual fund returns are neither fixed nor guaranteed.

The Bajaj Finserv Banking and Financial Services Fund offers exposure to India’s BFSI sector, which includes banks, NBFCs, insurance companies, and fintech firms. Whether this fund suits an investor depends on their financial goals, risk appetite, and investment horizon. Investors are advised to consult a financial advisor before making investment decisions.

Investors who prefer to make and manage their investments independently can invest directly with the asset management company under the direct plan. Since there are no commission costs, the expense ratio for the direct plan is relatively lower, which can result in slightly higher net returns over time.

The fund invests primarily in companies from the banking and financial services sector. Holdings may change from time to time based on market conditions and the fund manager’s strategy. You can refer to the latest fund factsheet for up-to-date information.

The fund primarily allocates assets to equity and equity-related instruments of BFSI companies. For more details, check the ‘Asset Allocation’ section on this page.

The expense ratio differs for Direct and Regular plans and is disclosed periodically. Investors can visit the ‘Downloads’ section on this website for latest information.

Returns are market-linked and depend on sector performance and market cycles. Past performance may or may not be sustained in future.

Yes, investors may switch between plans, subject to applicable rules. Such switches may be treated as redemptions and could have tax implications.

Exit load, if any, is defined in the scheme documents and may vary by holding period. Investors should review the Scheme Information Document before investing.

The NAV of any mutual fund scheme is calculated at the end of every business day. The latest available NAV can be reviewed on the AMC website and the AMFI portal.

You can invest online through the Bajaj Finserv AMC website or through aggregators. You can also invest either online or offline through a mutual fund distributor. Investments can be made via lumpsum or SIP.

The fund follows a megatrend investment strategy, focusing on long-term structural shifts in the BFSI sector. It aims to potentially benefit from the growth of India’s financial ecosystem over time by identifying themes and trends that may shape the sector over the long term.

As a sectoral equity fund, it is labelled Very High Risk on the Riskometer. Investors should assess suitability based on their risk appetite.

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.