Bajaj Finserv gets SEBI license to commence Mutual Fund business

Bajaj Finserv has received the final registration from the Securities and Exchange Board of India (SEBI), as the start of its mutual fund operations under the name Bajaj Finserv Mutual Fund.

As of the start of its mutual fund operations under the name Bajaj Finserv Mutual Fund, Bajaj Finserv stated that it has received the final registration from the Securities and Exchange Board of India (SEBI), the financial markets regulator (BFMF). This brings a new asset manager to the Indian mutual fund sector, which, as of 31 January 2023, had 42 asset management firms managing assets of Rs 39.62 trillion. Several mutual fund schemes across categories, in the active and passive segments, are anticipated to be introduced by Bajaj Finserv Mutual Fund, with Bajaj Finserv Asset Management (BFAM) serving as the Investment Manager.

The chairman and managing director of Bajaj Finserv, Sanjiv Bajaj, stated that “a resurgent India, increased investor confidence, and digital access to financial services are driving to significant adoption of mutual funds. Bajaj Finserv’s receipt of the SEBI’s permission is crucial from a strategic perspective because it permits the company to finish developing its portfolio of financial services for retail clients. Our mutual fund company will pioneer a new way to investing and long-term, sustained wealth building with Ganesh Mohan at the lead.

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According to Ganesh Mohan, CEO of Bajaj Finserv Asset Management Ltd, “Now that investors are more aware of the benefits of long-term investing, it is a good moment for the Group to expand its mutual fund offering for investors. The mutual fund industry will adhere to the Group’s future-focused and technologically advanced philosophies. Our business model is concentrated on generating long-term profits for our investors thanks to our innovation DNA and a win-win strategy for our partners. The Canara Robeco AMC’s former head of equity, Nimesh Chandan, will lead the BFAM’s investment management department.

After the introduction of fund houses like WhiteOak Capital, Samco, NJ, and Trust, the rivalry in the mutual fund sector has increased. Industry watchers anticipate that a few additional asset managers, like Zerodha, Unifi Capital, and others, will shortly receive a license to manage money. Investors now have more options as more businesses enter the money management industry.