India's 43rd Asset Management Company Launched Today
The country's newest mutual fund house has arrived. Bajaj Finserv, India's 43rd asset management company (AMC), will be launched on June 6. Bajaj Finserv AMC is a subsidiary of Bajaj Finserv, the holding company for the Pune-based Bajaj Group's various financial services businesses. This will also be the first fund house with a base in Pune. Mutual fund houses are typically based in Mumbai, though some new-age fund houses are opening in Bengaluru as well.
At the moment, it has received approval from capital market regulator Securities and Exchange Board of India (SEBI) to launch seven schemes. Three are debt funds (a liquid fund, an overnight fund, and a money market fund), and three are equity funds (a balanced advantage fund, a large- and mid-cap fund, and a flexi-cap fund). The fund house has also received permission to launch an arbitrage fund. Shorter-term debt funds are essential in a mutual fund's portfolio because they enable investors to begin systematic transfer plans (STPs). An STP facilitates the transfer of funds from a debt fund (typically a liquid fund or a similar scheme) to an equity fund.
The new fund house joins a long list of newly established fund houses in India's Rs 40 trillion mutual funds industry. Five mutual funds have entered the industry between 2021 and now. ITI and WhiteOak mutual funds launched their first schemes in 2019. NJ and Trust mutual funds launched their first set of schemes in 2021. In 2022, Samco Mutual Fund launched its first scheme.