Investing doesn’t have to be about choosing between growth potential and relative stability—some avenues can offer both, in measured proportions. The new Bajaj Finserv Equity Savings Fund is designed for that.
This hybrid fund combines equity with arbitrage and debt opportunities in one portfolio to capture growth potential in some market conditions while mitigating volatility and lowering downside risk.
Launched by Bajaj Finserv AMC, this fund seeks to offer investors a middle ground between the low-risk and low-return profile of traditional avenues and the high-risk high-return potential of equities.
The New Fund Offer (NFO) period for the Bajaj Finserv Equity Savings Fund began on July 28, 2025, and is on till August 11, 2025.
A three-part strategy for growth and stability
The fund follows a hybrid approach, allocating its portfolio across three key components:
- Equity: This portion of the portfolio will seek to offer the potential for long-term capital appreciation by investing in equity instruments using a Growth at Reasonable Price (GARP) strategy. Fund managers will identify companies with sustainable growth potential that are trading at fair valuations or are slightly undervalued when compared to their fundamentals.
- Arbitrage: The arbitrage component will seek to benefit from temporary price differences of the same asset in two market segments. Through this portion of the portfolio, the fund will seek to create a hedged equity position with low directional market risk and reduce overall volatility.
- Debt: The debt portion will focus on quality securities, including AAA-rated and sovereign securities. Through strategic selection and active management, the fund will seek to optimise return potential while managing risk.
Apart from these three, the fund may invest a portion of assets in REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts), adding another layer of diversification. This gives investors the potential for stable asset-backed income and access to alternative growth assets within a traditional mutual fund wrapper.
Through these assets, the Bajaj Finserv Equity Savings Fund aims to fill a space between equity-oriented funds and traditional savings options.
Tax-efficient structure with liquidity
The fund will seek to maintain a cumulative equity exposure (including arbitrage) above 65%, allowing it to qualify for equity taxation. The tax structure will be as follows:
- Short-term capital gains (applicable to units held for less than a year): 20% plus applicable surcharge and cess
- Long-term capital gains (on units held for more than a year): Capital gains of up to ₹1.25 lakh in a financial year are tax-free. Thereon, the tax rate is 12.5% (plus applicable surcharge and cess).
Thus, by maintaining a holding period of at least one year, investors – especially those in higher tax slabs – can reduce their tax burden. This can potentially translate to better post-tax gains than debt-oriented funds or other fixed-income instruments where interest is taxed as per an investor’s tax slab.
Suitable for a range of investors
The fund can be considered by a wide spectrum of investors:
- Those seeking lower drawdowns compared to pure equity funds, especially during periods of market correction
- Investors looking for a moderately aggressive solution that provides exposure to equities without full market risk
- Individuals seeking the potential for better post-tax returns than traditional debt funds
- Those with a short-to-medium investment horizon and a desire for both income and some capital growth potential.
- Those looking for an avenue to temporarily park funds before timing their entry into more aggressive assets.
- New investors seeking a relatively stable first step into the equity markets.
Importantly, the fund is actively managed across all components—equity, debt, and arbitrage—enabling the investment team to adjust allocations based on evolving market conditions to balance risk and return potential in line with Scheme Information Document.
NFO details
- NFO opens: July 28, 2025
- NFO closes: August 11, 2025
- Minimum application amount: For lumpsum – Rs. 500/- and in multiples of Re. 1/- thereafter. For Systematic Investment Plan (SIP)- Rs. 500 and above (minimum 6 instalments)
Those look for a new mutual fund scheme to invest in can consider this fund. Units will be available for an offer price of Rs. 10 during the NFO period. When the fund reopens for subscription (a few business days after the NFO ends), units can be purchased at the applicable Net Asset Value (NAV). Investors are advised to consult their financial advisors to assess suitability before investing.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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Published on July 31, 2025