NFO Alert: Bajaj Finserv AMC enters the ETF market; launches Nifty 50 and Nifty Bank ETF

Bajaj Finserv AMC has introduced two new fund offerings, namely Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF, which became available for subscription on January 15, 2024. Marking the companys foray into the ETF market, this strategic initiative aims to provide investors with a more cost-effective avenue for investment.

Bajaj Finserv AMC Enters ETF Market

These ETFs are designed to mirror the performance of significant benchmark indices in the Indian stock market, making them an attractive option for long-term investors seeking exposure to securities within the Nifty 50 Index and the Nifty Bank Index, thereby tracking the market leaders.

NFO: Bajaj Finserv Nifty 50 and Nifty Bank ETF

The funds management will be jointly overseen by Sorbh Gupta and Ilesh Savla. The subscription window for this new fund offer opened on January 15, 2024, and is set to close on January 18, 2024. Following this, both ETFs will be available for continuous sale and repurchase until January 29, 2024, on the BSE and NSE platforms.

Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF aim to replicate the performance of Nifty 50 and Nifty Bank indices, subject to tracking errors. These indices are widely recognized as indicators of the Indian equity market, encompassing large-cap companies from various sectors.

The goal of introducing these index-linked ETFs is to provide investors with a diversified and transparent investment option aligned with market movements. The benchmark indices for the fund are Nifty 50 TRI and Nifty Bank TRI.

Benefits of Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF

Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF come with benefits such as consistent liquidity facilitated by market maker on the exchange and real-time tracking of Net Asset Value (NAV) or Indicative NAV (iNAV). These funds boast ample liquidity owing to a substantial number of buyers and sellers for the securities included in the benchmark index, addressing concerns related to Securities Transaction Tax (STT) and brokerage.

The primary objective of these funds is to replicate the benchmark indexs performance, with Bajaj Finserv Nifty 50 ETF aligned with the Nifty 50 Index and Bajaj Finserv Nifty Bank ETF tracking the Nifty Bank Index, striving to approximate the respective index returns, accounting for tracking errors.

Ganesh Mohan, CEO, Bajaj Finserv Asset Management Limited (Bajaj Finserv AMC) said “We are pleased to offer our first 2 ETFs – Nifty 50 ETF and Nifty Bank ETF. The Nifty 50 ETF reflects our commitment to providing large-cap investment options, while the Nifty Bank ETF, comprising leading banking stocks, provides an opportunity to invest in a sector that is the backbone of the Indian economy. Both the schemes symbolise our dedication to offering diverse products that cater to the diverse needs of investors.”

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly-owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.