Bajaj Finserv gets Sebi license to start mutual fund business

Financial services company Bajaj Finserv on Wednesday said that it has received the final registration from the Securities and Exchange Board of India (Sebi) to start its mutual fund business operations under Bajaj Finserv Mutual Fund.

Bajaj Finserv Mutual Fund, with Bajaj Finserv Asset Management Limited (BFAML) as the Investment Manager, will soon offer a range of mutual fund products including equity, debt, and hybrid funds, both in the active and passive segments, to investors. Nimesh Chandan, erstwhile head of equities at Canara Robeco AMC will be heading the investment management function at BFAM.

"The company told the stock exchanges that it had received an in-principle approval from Sebi for sponsoring a Mutual Fund," the financial services company said in a regulatory filing.

Bajaj Finserv Asset Management Limited will create a tech-driven, multi-channel approach to serve investors across various touchpoints and geographies in order to build a future-ready asset management company.

Sanjiv Bajaj, Chairman & Managing Director, Bajaj Finserv, said, “A resurgent India, rising investor confidence and digital access to financial services are leading to high adoption of mutual funds. The approval from SEBI is strategically important for Bajaj Finserv as it enables the company to complete its suite of financial solutions for retail customers. With Ganesh Mohan at the helm, our mutual fund business will inspire a new approach to investing and sustained, long-term wealth creation.”

Ganesh Mohan, Chief Executive Officer, Bajaj Finserv Asset Management Limited, said, “With greater awareness among investors to stay invested over the longer term, it is an opportune time for the Group to build its mutual fund offering for investors. The mutual fund business will align with the Group’s philosophy of being future-focussed and tech-driven. Coupled with our innovation DNA and a win-win approach for our partners, our business model is focused on creating long-term returns for our investors.”

The Indian mutual fund industry has assets worth Rs 39.62 lakh crore and has 42 asset management companies working in the sector as on January 31, 2023.

The Association of Mutual Funds in India (Amfi) recently reported that retail investors' interest in the Indian mutual fund industry has seen a significant surge with the value of assets held by them witnessing a rise of 9.3 per cent to Rs 23.4 lakh crore in January.

In comparison, the value of assets held by retail investors in mutual funds stood at Rs 21.40 lakh crore in January 2022, latest data with showed.

Overall, assets managed by the mutual fund industry increased to Rs 40.8 lakh crore in January 2023 from Rs 38.89 lakh crore a year earlier, representing 4.93 per cent growth in assets.

However, the value of institutional assets has marginally decreased to Rs 17.42 lakh crore in January 2023, from Rs 17.49 lakh crore in January 2022.

Industry insiders believe the increase in asset base is mostly the result of advanced SIP (Systematic Investment Plan) flows, which touched Rs 13,000-crore for the fourth time in a row in January this year.

As per the AMFI data, flows through SIP rose to Rs 13,856 crore in January from Rs 13,573 crore in December. This was the fourth consecutive month when SIP flows remained above the Rs 13,000-crore mark.