Bajaj Finserv Launches Nifty 50 and Nifty Bank ETFs for Easy Investment
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Bajaj Finserv Expands Portfolio with Cost-Effective ETFs
January 12th, 2024:
Bajaj Finserv Asset Management has unveiled two new Exchange Traded Funds (ETFs) – the Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF, aiming to provide investors with accessible and cost-effective options for long-term capital appreciation. The New Fund Offers (NFOs) for these ETFs will be open from January 15th to January 18th, 2024.
Key Details:
- NFO Dates: January 15th, 2024, to January 18th, 2024
- Scheme Category: Exchange Traded Fund (ETF)
- Listing: NSE and BSE
- Benchmark Indices: Nifty 50 TRI and Nifty Bank TRI
Overview:
Bajaj Finserv Nifty 50 ETF and Nifty Bank ETF aim to replicate the performance of the Nifty 50 and Nifty Bank indices, respectively. These indices, known as indicators of the Indian equity market, consist of large-cap companies across various sectors. By offering ETFs linked to these indices, Bajaj Finserv AMC intends to provide investors with diversified and transparent investment avenues aligned with market movements.
Advantages for Investors:
Liquidity: Continuous liquidity provided by Authorized Participants (AP) on the exchange.
Tracking: Close tracking of real-time Net Asset Value (NAV) or indicative NAV (iNAV).
Cost-Effective: Lower spread on the exchange, resulting in a reduced effective spread considering Securities Transaction Tax (STT) and brokerage.
Management and Objectives:
The funds will be jointly managed by Mr. Sorbh Gupta and Mr. Ilesh Savla. The Bajaj Finserv Nifty 50 ETF aligns with the NIFTY 50 Index, while the Nifty Bank ETF mirrors the Nifty Bank Index. The goal is to closely correspond to the respective index returns, subject to tracking errors.
Mr. Ganesh Mohan, CEO of Bajaj Finserv Asset Management, expressed, “The Nifty 50 ETF reflects our commitment to providing large-cap investment options, while the Nifty Bank ETF, comprising leading banking stocks, offers an opportunity to participate in a sector which is the backbone of the Indian economy.”
Mr. Nimesh Chandan, CIO, added, “These ETFs offer investors more affordable, rule-based, zero-bias strategies that focus on keeping investing very simple.”
The New Fund Offer will be open for initial subscription from January 15th to January 18th, 2024. The scheme reopens for continuous sale and repurchase by January 29th, 2024. Both ETFs will be available for buying and selling on the BSE and NSE platforms by January 29th, 2024.
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