Bajaj Finserv Asset Management Limited launches its Banking and Financial Services Fund to tap into India’s evolving financial growth story

PIONEER EDGE NEWS SERVICE/Dehradun

Capitalising on India’s accelerating financial growth story, Bajaj Finserv Asset Management Limited announced the launch of its Banking and Financial Services Fund, an open-ended equity scheme investing in Banking and Financial services sector. The New Fund Offer (NFO) opened for subscription on November 10 and closes on November 24. The fund is benchmarked against the NIFTY Financial Services TRI.

India’s Banking and Financial services (BFSI) sector is transforming at an unprecedented pace, expanding well beyond traditional banking to include NBFCs, insurers, AMCs, capital markets, and cutting-edge fintechs. Over the past two decades, the sector’s market capitalisation has skyrocketed nearly 50X^#, powered by rapid digitisation, rising credit penetration, financial inclusion, and bold regulatory reforms. Today, the sector stands at the heart of India’s economic momentum, offering investors a gateway to participate in the country’s financial transformation and long-term wealth creation story.

Built on Bajaj Finserv Mutual Funds’ Megatrends strategy, the fund aims to capture opportunities from India’s evolving financial ecosystem through a diversified portfolio spanning banks, NBFCs, insurers, AMCs, and other capital market participants. It will invest in 45–60 stocks shortlisted from a ~180-200-stock Megatrends universe aligned with long-term structural trends. The portfolio count is indicative, and the actual number will depend on market conditions at the time of making investment.

Backed by megatrends such as UPI adoption, digital lending, Jan Dhan initiatives, and rising participation across NBFCs, mutual funds, and insurance, this scheme is designed for long-term investors with a higher risk appetite seeking wealth creation through focused exposure to the BFSI sector.

Bajaj Finserv Asset Management Limited managing director Ganesh Mohan said, “As India marches toward Viksit Bharat and becomes a Top 3 economy globally, the financial services sector will play a significant role in enabling this growth. India’s increasing affluence and aspirations will drive significant growth across different financial services like lending, insurance, investments, payments and capital market products. BFSI will increasingly be central to India’s growth and will attract both domestic and foreign pools of capital as the economy expands. We believe this gives investors a great opportunity to participate in this megatrend through a dedicated thematic fund which will identify opportunities across the entire financial services spectrum and look to benefit from the future growth in these sectors.”

The company’s CIO Nimesh Chandansaid, “Our investment approach for the Bajaj Finserv Banking and Financial Services Fund is anchored in rigorous research and disciplined stock selection. The fund will invest in 45–60 curated companies from a universe of 180-200 megatrends powered companies, across banking, NBFC, insurance, capital market intermediary, and asset management segments, ensuring both breadth and depth of exposure. While the sector offers multiple growth avenues, we believe superior outcomes are achieved by identifying businesses with sustainable competitive advantages, prudent capital allocation, and strong governance. By focusing on quality and maintaining a long-term orientation, we aim to deliver consistent risk-adjusted returns while giving investors access to the most compelling opportunities within India’s evolving BFSI landscape.”