Bajaj Finserv said that it has secured a mutual fund license from market regulator Sebi. The company stated that it will soon provide a variety of mutual fund products to investors, including equities, debt, and hybrid funds in both active and passive segments. Bajaj Finserv Asset Management Ltd (BFAML) will be the MF business’s investment manager, and Ganesh Mohan, who has been with Bajaj Finserv for eight years as group head for corporate strategy, will run the AMC as CEO.
The mutual fund business will correspond with the group’s concept of being future-focused and technology-driven. The business strategy, when combined with our innovation Culture and a win-win approach for our partners, is focused on delivering long-term returns for our investors, said Ganesh Mohan.
Ganesh had many managerial positions before joining Bajaj Finserv, including one at the Boston Consulting Group (BCG) for 16 years. The mutual fund industry will inspire a new approach to investment and long-term wealth development with Ganesh Mohan at the helm, according to Sanjiv Bajaj, CMD of Bajaj Finserv.
Nimesh Chandan, Chief Investment Officer, is also a member of the executive team (CIO). Chandan is a seasoned investor with over 22 years of expertise in the Indian financial markets. He has worked in the mutual fund sector for 17 years. The Sebi clearance is strategically crucial for Bajaj Finserv since it allows the business to complete its array of financial products for retail consumers.
To construct a future-ready asset management organization, the company announced it will develop a tech-driven, multi-channel strategy to serve investors across numerous touchpoints and locations. To construct a future-ready asset management organization, the company announced it will develop a tech-driven, multi-channel strategy to serve investors across numerous touchpoints and locations. Furthermore, the mutual fund products would appeal to institutional customers, according to a company release.
The rise in shares after getting the SEBI license.
Shares of Bajaj Finserv gained more than 3% to Rs 1,387.9 on the BSE after the company was granted a mutual fund (MF) license by market regulator SEBI. The business stated that it would soon release a variety of mutual fund products for investors, including equities, debt, and hybrid funds in both active and passive segments.
A view on Indian Mutual Fund Industry.
Taking the data from the first month of this year, the Indian mutual fund industry has assets of Rs 39.62 lakh crore and 42 asset management businesses. Retail investors’ interest in the Indian mutual fund business has increased significantly, says the informatics from the AMFI (Association of Mutual Funds in India). The value of assets held by them spiked 9.3 percent to achieve Rs 23.4 lakh crore in the first month of 2023.
According to the most recent statistics, the value of assets owned by retail investors in mutual funds amounted to Rs 21.40 lakh crore in January 2022. Overall, assets handled by the mutual fund sector climbed by 4.93 percent to Rs 40.8 lakh crore in January 2023, up from Rs 38.89 lakh crore the previous year. Conversely, the worth of institutional holdings has marginally diminished, from Rs 17.49 lakh crore last year to Rs 17.42 lakh crore in the first month of this year.
According to industry experts, the growth in the asset base is mostly due to advanced SIP (Systematic Investment Plan) flows, which surpassed Rs 13,000 crore for the fourth time in a row in January of this year. SIP inflow climbed from Rs 13,573 crore in December to Rs 13,856 crore in January, according to AMFI figures. It marked the fourth month in a row that SIP flows exceeded Rs 13,000 crore.
With the introduction of fund houses such as WhiteOak Capital, Samco, NJ, and Trust in the last few years, competition in the mutual fund sector has increased. According to industry analysts, Zerodha, Unifi Capital, and a few other asset managers will be granted a license to manage money shortly. As more businesses enter the money management market, investors have more alternatives.
About the company- The Bajaj Finserv.
By the Core Investment Companies (Reserve Bank) Directive, 2016, Bajaj Finserv Limited is an unregistered Core Investment Company (CIC). Almost 100 million consumers are served by the company’s companies, which offer financial solutions such as savings, loans, protection, and asset building.
Bajaj Finserv owns 52.49 percent of Bajaj Finance Ltd, a listed non-bank with a bank’s strategy and structure. It owns 74% of Bajaj Allianz General Insurance Company Ltd and 74% of Bajaj Allianz Life Insurance Company Ltd. Bajaj Finance Ltd’s subsidiaries include Bajaj Housing Finance Ltd.
edited and proofread by nikita sharma