Bajaj Finserv AMC launches new BFSI growth fund

Bajaj Finserv Asset Management Company (AMC) has launched the Bajaj Finserv Banking and Financial Services Fund, an open-ended equity scheme aimed at capturing long-term opportunities in India’s expanding Banking, Financial Services and Insurance (BFSI) sector. The New Fund Offer (NFO), which marks the first subscription window for a new mutual fund, opens on November 10, 2025, and closes on November 24, 2025.

India’s financial system is rapidly transforming due to rising digital adoption, favourable demographics, regulatory reforms and deeper financial inclusion. As India moves toward becoming the world’s third-largest economy by 2030 with a projected GDP of USD 7.3 trillion, the BFSI sector will remain central to supporting economic expansion. Estimates indicate that the banking system alone will require nearly USD 4 trillion in additional capital over the next two decades. Credit to priority sectors rose 85 percent between 2019 and 2024, while Unified Payments Interface (UPI) transaction values have grown almost fivefold between FY21 and FY25. The expansion of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts has further strengthened access to formal finance.

The BFSI sector’s market capitalisation has increased nearly 50 times over the past two decades, rising from ₹1.8 trillion in 2005 to ₹91 trillion in 2025. Banks have maintained steady credit and deposit growth, Non-Banking Financial Companies (NBFCs) have improved profitability, insurance assets have grown nearly tenfold since FY07, and India has emerged as the world’s fourth-largest equity market by capitalisation.

The Bajaj Finserv Banking and Financial Services Fund aims to tap into this momentum through a diversified investment approach. It will invest in 45–60 carefully selected companies from a broader universe of around 200 BFSI-linked firms covering banks, NBFCs, insurers, asset management companies (AMCs), capital-market intermediaries and fintech innovators. According to Bajaj Finserv AMC, current sector valuations remain attractive, trading below their 14-year average, supported by stronger balance sheets and improved earnings visibility.

The fund is designed to be accessible to all investors. It chooses the best 45–60 companies from the BFSI space and aims to benefit from India’s growing use of digital payments, rising loan demand, increasing adoption of banking services and expanding insurance coverage. The NFO is open for everyone, not just companies.

The scheme will reopen for continuous investment within five business days after unit allotment. Investors are advised to evaluate whether the fund aligns with their long-term goals and risk appetite.

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.