New Fund Offer: Bajaj Finserv AMC has announced a new exchange fund. Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF are the company's first ETF products, and their launch is a strategic move aimed at providing investors with better and cost-effective investment options. To do. These ETFs track the performance of two major benchmark indices in the Indian stock market. These new schemes are a better investment option for investors who want to invest in securities covered by Nifty 50 Index and Nifty Bank Index for long term. Also want to achieve returns similar to the growth of market leaders (top performing stocks).
Growth is coming in banking sector
Nimesh Chandan, CIO, Bajaj Finserv Asset Management, said that these ETFs offer investors a more affordable, rule-based, no-business strategy, which is focused on making investing very easy. We believe this is a good time to launch Nifty Bank ETF as the banking sector is poised to register huge growth in the coming few years. The Nifty 50 index has historically delivered attractive returns making it suitable for new investors who want to participate in the equity market with a diversified large cap portfolio.
Focus on different needs of investors
Ganesh Mohan, CEO, Bajaj Finserv Asset Management, said that we are pleased to launch our first 2 ETFs – Nifty 50 ETF and Nifty Bank ETF. Nifty 50 ETF reflects our objective of providing largecap investment options. Whereas Nifty Bank ETF, which consists of leading banking stocks, provides an investment opportunity in a sector that is the backbone of the Indian economy. Both the schemes are different types of products, which meet different needs of investors.
Large-cap companies from different sectors in the index
Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF are designed to replicate the performance of Nifty 50 and Nifty Bank indices subject to tracking errors. These indices are widely considered as barometers of the Indian equity market, which includes large-cap companies from different sectors. By offering these index-linked ETFs, Bajaj Finserv AMC aims to provide investors with a diversified and transparent investment option that is in line with market movements.
Bajaj Finserv Nifty 50 ETF and Nifty Bank ETF offer benefits such as continuous liquidity provided by Authorized Partners (AP) on the exchange and closely tracking real time Net Asset Value (NAV) or Indicative NAV (INAV) . There is a large number of buyers and sellers for the securities included in the benchmark index for these funds, which means there is no problem of liquidity. That is, they provide better liquidity keeping in mind the Securities Transaction Tax (STT) and brokerage.
Performance like benchmark index
The fund aims to mimic the performance of the benchmark index, wherein Bajaj Finserv Nifty 50 ETF is inline with the Nifty 50 index and Bajaj Finserv Nifty Bank ETF behaves like the Nifty Bank index. The objective is to approximate the returns of the respective index, subject to tracking errors.
When will you be able to invest?
This fund will be jointly managed by Saurabh Gupta and Ilesh Savla. The new fund offer will open for subscription on January 15 and will close on January 18, 2024. Both these schemes will reopen for continuous sale and repurchase till January 29, 2024. Both these ETFs will be available as tradable securities for buying and selling on BSE and NSE platforms till January 29, 2024.