Investment in Bajaj Finserv Equity Savings Fund: Reasons and Advantages
The Bajaj Finserv Equity Savings Fund, a new offering from Bajaj Finserv Asset Management Limited, is a low-risk, actively managed hybrid equity mutual fund that caters to investors seeking a balance between risk and return.
This unique fund combines a mix of growth-oriented equities (65-90% allocation), low-risk equity arbitrage strategies, and income-generating debt instruments (10-35%) to create a portfolio that targets capital appreciation, income stability, and volatility reduction. The fund is designed for relatively conservative investors seeking tax-efficient, steady long-term wealth creation with controlled risk.
The investment strategy of the Bajaj Finserv Equity Savings Fund is centred around net long equity (65-90%), focusing on multi-cap, multi-sector stocks chosen using a Growth at Reasonable Price (GARP) approach and driven by data analytics combined with qualitative factors. The fund also employs a low-risk arbitrage component to capture price differences between cash and derivatives markets, helping reduce overall portfolio volatility and delivering steady returns.
To further add stability, the fund invests in high-quality fixed income securities (AAA-rated and sovereign) to generate stable income and add portfolio stability. The fund also has the flexibility to invest in derivatives, overseas securities, REITs, and InvITs for diversification. Dynamic asset allocation and hedging strategies are applied to manage equity, debt, and derivative risks effectively.
The Bajaj Finserv Equity Savings Fund is expected to provide long-term capital appreciation with lower volatility than pure equity portfolios. Its minimum 65% equity allocation (including arbitrage) qualifies it as an equity-oriented fund, making it eligible for favourable long-term capital gains tax (12.5%) with an exemption of up to Rs 1.25 lakh per year, enhancing post-tax returns compared to traditional fixed income or debt schemes.
The balanced mix aims to offer inflation-beating, tax-efficient returns with reduced volatility and the potential to navigate varying market cycles. Risk mitigation includes rigorous credit analysis for debt, hedging via derivatives and arbitrage, and a disciplined stock selection process.
The fund is suitable for investors seeking lower-risk exposure to equities but desiring long-term capital growth, looking for regular stable income generation through debt components, concerned about tax efficiency in higher tax brackets, and preferring a diversified portfolio that manages market volatility and risk dynamically.
In summary, the Bajaj Finserv Equity Savings Fund is an all-in-one strategic hybrid solution for conservative investors aiming for steady wealth creation with limited downside risk and tax benefits. The fund can serve as a suitable parking option for investors who have exited equity markets and are waiting for the right time to re-enter or have a large cash withdrawal. It can also be an addition to an investor's portfolio for those looking for a relatively stable place to park their funds, particularly for retired individuals wanting low volatility and relatively better returns than traditional investment options.
Investors can invest in the Bajaj Finserv Equity Savings Fund through a Systematic Investment Plan (SIP) and can estimate their potential returns using an SIP calculator. The New Fund Offer for the Bajaj Finserv Equity Savings Fund opened on 28 July 2025 and will end on 11 August 2025.
[1] Source: Bajaj Finserv Equity Savings Fund - Overview [2] Source: Bajaj Finserv Equity Savings Fund - NFO Details [3] Source: Bajaj Finserv Equity Savings Fund - Risk and Return [4] Source: Bajaj Finserv Equity Savings Fund - Portfolio [5] Source: Bajaj Finserv Equity Savings Fund - FAQs
This fund, the Bajaj Finserv Equity Savings Fund, caters to individuals interested in personal-finance and investments, offering a balanced approach to finance by combining investments in growth-oriented equities, low-risk equity arbitrage strategies, and income-generating debt instruments. The goal of this strategy is to provide investors with capital appreciation, income stability, and volatility reduction over the long term, making it suitable for those seeking a controlled-risk environment in their personal-finance and investing ventures.
