- By JE Brand Desk
- Thu, 07 Aug 2025 06:00 PM (IST)
- Source:JND
Bajaj Finserv AMC has launched a new fund called the Bajaj Finserv Equity Savings Fund. It is designed for investors who want a mix of growth potential and relative stability. This fund does not behave like a full equity fund, nor is it like a pure debt fund. Instead, it aims to offer a balance by combining equity, debt, and arbitrage strategies.
Let’s understand who this fund is suited for, and why it might fit into your investment plan.
1. The Cautious Optimist
You’re someone who wants the benefits of equity (like long-term growth) but is not comfortable with ups and downs in the market. If this sounds like you, the Bajaj Finserv Equity Savings Fund could be a suitable choice.
Why?
- It gives you equity exposure, but in a limited and measured way (10–40% net equity exposure).
- The fund also invests in debt and arbitrage, which helps to reduce the impact of market volatility.
- Over time, this steady approach may help your money grow through compounding.
- If you are moving away from fixed deposits or other traditional saving options and want relatively better returns with controlled risk, this fund could be a suitable starting point.
Note: Returns on fixed deposits are fixed, whereas mutual funds are subject to market risk.
2. The Income Planner
If you are someone who is planning for regular income, maybe post-retirement or simply to support monthly expenses, this fund can help.
Why?
- The fund is SWP-ready (Systematic Withdrawal Plan), meaning you can set up regular monthly payouts. You can make use of an SWP calculator to decide your monthly SWP amount.
- Since the fund is designed to mitigate the impact of market volatility, your withdrawal experience can be smoother compared to equity funds.
- It may allow you to benefit from moderate growth while still receiving income, without the pressure of timing the market.
- There’s no lock-in, so your money stays flexible and accessible when needed.
- This makes the Bajaj Finserv Equity Savings Fund a practical choice for someone who wants regular withdrawals but doesn't want to keep the entire amount in a traditional savings account or a low-return option.
Note: Returns on savings accounts are fixed; however, returns on mutual funds are subject to market risks.
3. The strategic allocator
Are you someone who keeps an eye on markets and wants to allocate money in a tax-efficient manner? Then this fund might be useful in your portfolio.
Why?
- Since the fund keeps at least 65% in gross equity, it qualifies as an equity fund for tax purposes. That means long-term capital gains (LTCG) are taxed at 12.5% beyond Rs 1.25 lakh, and short-term capital gains (STCG) at 20%, which can be better than debt fund taxation for many.
- You also get the benefit of relatively lesser drawdowns (smaller losses during market falls) compared to a pure equity fund.
- It’s a suitable option when you're shifting between equity and debt based on market conditions, but still want your money working in the background.
- This fund can serve as a tax-efficient parking spot during uncertain times or a transition zone while adjusting your portfolio.
Features of Bajaj Finserv Equity Savings Fund
Let’s quickly go over the key benefits of this fund:
- Blended strategy: It invests in equity, debt, and arbitrage, which aims to balance risk and return. The gross equity exposure is at least 65%, making it eligible for equity-style taxation, which is suitable in many cases.
- Flexibility with stability: Whether you’re planning withdrawals (SWP), reallocating assets, or just want a relatively stable place to park your funds temporarily, this fund offers relatively lesser volatility and tax-efficient options.
- Measured Net Equity Exposure (10–40%): The fund keeps only a limited portion of the money in pure equity, so the ups and downs are not as sharp as in a full equity fund. This helps in reducing short-term shocks while still keeping long-term upside potential.
- Access to REITs & InvITs: By also investing in REITs and InvITs, the fund adds another layer of diversification, helping reduce dependence on stock or bond market movements alone.
To sum up, the Bajaj Finserv Equity Savings Fund is a suitable option if you're looking for a middle ground between risk and relative stability. It gives you equity exposure, but in a controlled way. It also provides income options, flexibility, and tax benefits.
So, if you're a cautious investor, a planner looking for stable income, or aiming for tax-efficient growth, this fund may be worth a look.
NFO period of Bajaj Finserv Equity Savings Fund open till 11th August 2025. Check it out and see if it fits your goals. As always, it’s good to match your investments with your financial plan and risk comfort before investing.
(Disclaimer: Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.)