BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
A Mutual Fund pools money from many investors and invests it in shares, bonds, or other securities based on a defined objective. A professional fund manager oversees the portfolio, makes investment decisions, and seeks to manage risk while earning potential returns. The fund’s market value is reflected in its NAV (Net Asset Value), which is the per-unit price calculated daily. The total market value of all investments managed under a scheme or an Asset Management Company is called Assets Under Management (AUM). Each scheme also carries a SEBI-mandated Riskometer, which indicates its risk level, ranging from low to very high.
Mutual funds collect money from multiple investors and invest it in a diversified basket of securities.
Each scheme is managed by a fund manager who designs and monitors the portfolio.
Every mutual fund scheme follows a defined investment objective and strategy.
Your money is spread across multiple securities, helping reduce dependence on a single investment.
Experienced fund managers handle investments and portfolio decisions on your behalf.
Start investing with relatively small amounts, making mutual funds suitable for many investors.
Open-ended mutual funds allow you to buy or redeem units at the prevailing NAV.
Invest across equities, debt, or a combination of both through professionally managed Mutual Fund schemes. Choose between SIP or lumpsum investment options based on your preference and investment approach. Mutual funds offer market-linked growth opportunities while helping spread risk through diversification. Fund managers identify investment opportunities to earn potential returns while managing risk. Investments can be monitored and managed easily, making them a convenient option for long-term financial planning.
Mutual funds offer a structured way to participate in financial markets through professionally managed portfolios. Here are some of their benefits:
Types of mutual funds can be broadly classified based on the asset classes they invest in. There are three types of mutual funds under this classification– equity, debt and hybrid funds. Let’s take a closer look at each to understand the differences better.
You can invest in Mutual Funds independently (via the Direct Plan) or through a Registered Mutual Fund Distributor (via the Regular Plan). The Direct Plan usually has lower expense ratios, as there is no distributor commission involved. The Regular Plan has higher costs but investors receive guidance on scheme selection, investments, redemptions and portfolio management. The process to invest online is typically as follows:
Mutual fund returns are market-linked and vary based on asset allocation and prevailing market conditions. Understanding return measures and associated risks may help set realistic expectations.
Here are some ways in which Mutual Fund returns may be estimated.
Here are some of the types of risk that Mutual Funds are subject to:
Investors should also assess scheme-specific risk factors before investing.
To invest in a mutual fund offered by Bajaj Finserv AMC, follow these steps:
You can also invest online as well as offline through financial advisors, distributors and on aggregator platforms. You can choose from among debt, equity and hybrid mutual funds and exchange traded funds (ETFs).[
Tax treatment depends on the classification of the scheme and the holding period of units. The tax rates as of February 2026 are detailed below. Since tax rules may change over time, investors should refer to current income tax provisions or consult a tax advisor for updated rules.
To help investors plan their investments and visualise potential outcomes, several Mutual Fund calculators are available online. These tools can support goal-based planning by offering projections under different investment scenarios.
Mutual fund calculators can help investors estimate their potential final corpus based on investment amount, tenure, and assumed rate of return. By adjusting these variables, investors can also understand how small changes may impact long-term wealth creation. However, these projections are purely illustrative, based on assumed returns, and do not assure or guarantee actual performance.
Calculators offered by Bajaj Finserv AMC include online SIP calculator, step-up SIP calculator, ELSS Calculator, lumpsum calculator, compound interest calculator, goal-based calculators, index calculator and much more.
The calculator is an aid, not a prediction tool. It may provide only an indicative picture.
Equity mutual funds
Invest primarily in shares of listed companies and are suited for long-term investing.
Debt mutual funds
Invest in fixed-income instruments such as government securities and bonds.
Hybrid mutual funds
Combine equity and debt investments to offer a balanced investment approach.
Other categories
Include life cycle funds, index funds, and exchange-traded funds (ETFs).
Mutual Funds are investment avenues that pool money from multiple investors and invest it in a diversified basket of securities such as equities, bonds, or money market instruments based on a stated objective. The portfolio is managed by a professional fund manager, and investors hold units whose value is reflected in the NAV.
Mutual Funds offer professional management, diversification, liquidity (in the case of most open-ended funds), and flexible investment options. They also provide transparency through regular disclosures as mandated by SEBI.
When you invest in a Mutual Fund, you purchase units of a diversified portfolio that may comprise multiple stocks, debt securities, or other instruments; you do not directly own these securities, but hold units that represent a proportionate share of the pooled investments. In contrast, buying stocks gives you direct ownership in a single company. Fixed deposits, on the other hand, are fixed-income instruments that typically offer predetermined returns, unlike Mutual Funds, which are market-linked and subject to market risk.
Mutual funds are subject to market risk, and returns may fluctuate based on economic and market conditions. Debt funds may also carry credit and interest rate risks.
An AMC manages Mutual Fund schemes by making investment decisions in line with the scheme objective and regulatory guidelines. It is responsible for operations, compliance, risk management, and investor servicing.
Equity funds primarily invest in shares, debt funds invest in fixed income instruments, and hybrid funds invest in a mix of both. The risk-return profile varies depending on the asset allocation.
Equity-oriented funds are commonly considered for long-term goals due to their growth potential over time. However, suitability depends on individual risk appetite and financial objectives.
Index funds passively track a specific market index and aim to replicate its performance (subject to tracking error). Actively managed funds seek to outperform a benchmark through active stock selection.
ELSS (Equity Linked Savings Schemes) are diversified equity Mutual Funds that qualify for tax deduction under Section 80C of the Income Tax Act, 1961, under the old tax regime. Investments made in ELSS are eligible for deduction within the overall Section 80C limit of Rs. 1.5 lakh per financial year, and the scheme has a mandatory lock-in period of three years.
You can select a suitable scheme based on your goals and risk profile. You can then visit Bajaj Finserv AMC’s official website and navigate to the transaction portal from the top right corner of the home page. Here, you can invest through a guided and end-to-end digital process. Investments can also be made through registered distributors, aggregator platforms or by visiting a Bajaj Finserv AMC official point of acceptance.
The minimum investment amount varies by scheme and investment mode (SIP or lumpsum). Investors should refer to the respective Scheme Information Document for details.
Yes, Bajaj Finserv AMC has a 100% digital process that enables convenient online investing.
Investors can track investments through account statements, the AMC’s online portal, or consolidated account statements (CAS). Additionally, NAV updates are published daily and portfolio disclosures are published regularly.
Bajaj Finserv AMC offers several Mutual Fund schemes, each with its own investment approach and strategy, in line with regulatory guidelines and stated objectives. You can visit the individual scheme pages to learn more about each scheme and its investment strategy.
Funds can be compared using metrics such as CAGR, benchmark performance and risk-adjusted return metrics over similar time periods. Past performance may or may not be sustained in future.
NAV represents the per-unit value of a Mutual Fund scheme calculated at the end of each business day. It reflects the market value of the underlying portfolio, net of expenses.
Periodic reviews, such as annually or in line with major life events, may help assess alignment with financial goals. Frequent short-term monitoring based solely on market volatility may not be necessary.
Returns may be calculated using absolute return, CAGR, or XIRR, depending on the investment type and duration. The method used should align with the investment pattern and holding period.
The minimum investment amount depends on the scheme and asset management company’s policies. Some schemes may allow SIPs starting at Rs. 100.
Several schemes allow SIP investments starting from relatively small amounts such as Rs. 500, depending on scheme terms. Investors should check the minimum SIP requirement of the chosen scheme.
Yes, several schemes permit lumpsum or SIP investments starting at Rs. 1,000, subject to scheme-specific conditions. Refer to the relevant scheme documents for precise limits.
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The calculator alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. This tool is created to explain basic financial / investment related concepts to investors. The tool is created for helping the investor take an informed investment decision and is not an investment process in itself. Bajaj Finserv AMC has tied up with AdvisorKhoj for integrating the calculator to the website. Mutual Fund does not provide guaranteed returns. Also, there is no assurance about the accuracy of the calculator. Past performance may or may not be sustained in future, and the same may not provide a basis for comparison with other investments. Investors are advised to seek professional advice from financial, tax and legal advisor before investing in mutual funds.
Need help planning your investments?
Bajaj Finserv Limited, an unregistered Core Investment Company (CIC) under RBI Regulations 2020, is a part of the renowned Bajaj Group.
One of India’s leading and most diversified financial services institutions, Bajaj Finserv Ltd provides simple financial solutions to crores of people every day through its group companies. Through continuous innovation, it strives to enrich the lives of communities across the length and breadth of the country and make financial security accessible to all.
Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
