NFO Alert: Bajaj Finserv Mutual Fund launches Money Market Fund; all you need to know

Bajaj Finserv Mutual Fund announced the launch of the Bajaj Finserv Money Market Fund, an open-ended debt scheme investing in money market instruments with relatively low-interest rate risk and moderate credit risk.

The scheme opened for public subscription on July 17, 2023, and will close on July 20, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

Q. What kind of mutual fund scheme is this?

This is an open-ended debt scheme investing in money market instruments with relatively low-interest rate risk and moderate credit risk.

Q. What is the main objective of investing in this fund?

The investment objective of the scheme is to generate regular income through investment in a portfolio comprising money market instruments. However, there is no assurance that the investment objective of the scheme will be achieved.

Q. How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of Rs 1000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation (% of net assets) of the scheme’s portfolio will be as follows:

Q. Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched many such funds in the past. You may view some of them in the table below.

Q. How will the scheme benchmark its performance?

The scheme benchmark would be Nifty Money Market Index B-I. The composition of the aforesaid benchmark is such that, it is most suited for comparing the performance of the scheme. The Trustees may change the benchmark in the future if a benchmark better suited to the investment objective of the scheme is available.

Q. Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be “Nil”.

Q. Who will manage this scheme?

Siddharth Chaudhary and Nimesh Chandan are the designated fund managers of this scheme.

Q. Does the fund contain any inherent risk?

The scheme involves “Moderate Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to moderate risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.