Bajaj Finserv NFOs: Which investors may benefit from NFOs?

These ETFs will track the performance of two major benchmark indices in the Indian stock market.

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These new schemes are a better investment option for investors who want to invest for the long term in securities covered by the Nifty 50 Index and the Nifty Bank Index and track the growth of market leaders (top performing stocks). 

Bajaj Finserv NFOs: NFO will open on January 15

The management of this fund will be done jointly by Saurabh Gupta and Ilesh Savla.

The new fund offer will open for subscription on Monday, January 15, 2024, 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.

Bajaj Finserv Nifty50 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.

The benchmark indices for the fund are Nifty 50 TRI and Nifty Bank TRI.

Bajaj Finserv NFO Benefits

Bajaj Finserv Nifty 50 ETF and Nifty Bank ETF offer benefits like constant liquidity provided by Authorized Partners (AP) on the exchange and closely tracking real time Net Asset Value (NAV) or Indicative NAV (INVA).

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.

Bajaj Finserv NFOs: Will track benchmark index

The fund aims to mimic the performance of the benchmark index, wherein Bajaj Finserv Nifty 50 ETF is aligned with the Nifty 50 Index and Bajaj Finserv Nifty Bank ETF will follow the Nifty Bank Index.

The objective is to approximate the returns of the respective index, subject to tracking errors.

Ganesh Mohan, CEO, Bajaj Finserv Asset Management (Bajaj Finserv AMC) said that 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.

Nimesh Chandan, CIO, Bajaj Finserv Asset Management, said, these ETFs offer investors more affordable, rule-based, no-bias strategies with a focus on keeping investing very simple.

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.