The Securities and Exchange Board of India (Sebi) has granted Bajaj Finserv Ltd. "final registration" to begin its mutual fund (MF) business, the company announced.
According to a press release issued on Wednesday, Bajaj Finserv Mutual Fund, managed by Bajaj Finserv Asset Management Ltd. (BFAML), will soon offer a variety of MF products in the active and passive segments.
BFAML intends to establish a "future-ready asset management company" by implementing a "tech-driven, multi-channel approach" to serving investors in multiple geographies.Commenting on the development, Sanjiv Bajaj, chairman & managing director of Bajaj Finserv, said, “A resurgent India, rising investor confidence, and digital access to financial services is leading to high adoption of mutual funds.” Sebi’s approval, he added, will enable the company to complete its suite of financial solutions for retail customers.
Ganesh Mohan, chief executive officer at BFAML, said, “It is an opportune time for the group to build its mutual fund offering for investors”, in alignment with the group’s “future-focused, tech-driven philosophy”.
As stated by the company, with the addition of mutual funds, Bajaj Finserv now offers a comprehensive range of financial services to customers, including asset acquisition, lifestyle enhancement through financing, asset protection through insurance, and family protection through life and health insurance, as well as savings, investment, and retirement products.
Bajaj Finserv MF will serve both retail individual and institutional clients.
The number of new fund offerings (NFOs) increased to 228 in 2022 from 140 the previous year, indicating growing market confidence despite headwinds. Fixed-maturity plans received special attention during the Reserve Bank of India's rate hike cycle (RBI).
As per market research firm Morningstar India, asset management companies (AMCs) raised Rs 62,000 crore through NFOs in 2022, a 38% decrease year on year (YoY). Furthermore, according to Morningstar, of the total NFOs in 2022, 179 were open-end funds and 49 were closed-end funds, generating Rs 62,187 crore. There were fewer NFOs in the flexi-cap, multi-cap, and dynamic categories, according to the report.
The number of retail mutual fund folios reached an all-time high of 11,17,60,343 in November 2022, according to the Association of Mutual Funds in India (AMFI), with the contribution from systematic investment plans (sip) totaling Rs 13,306,49 crore.