The new fund offer or NFO of the schemes will open for subscription on January 15 and will close on January 18. The schemes will re-open for continuous sale and repurchase by January 29.
The schemes will be available as tradeable securities for buying and selling on the BSE and NSE platforms by January 29.
Bajaj Finserv Nifty 50 ETF, an open ended exchange traded fund tracking Nifty 50 Index, will be benchmarked against Nifty 50 TRI. Bajaj Finserv Nifty Bank ETF, an open ended exchange traded fund tracking Nifty Bank Index, will be benchmarked against Nifty Bank TRI.
The schemes will be managed by Sorbh Gupta and Ilesh Savla.
The schemes will be suitable for investors who are seeking long-term capital appreciation and want investment in securities covered by Nifty 50 Index and Nifty Bank Index, and gain access to growth of potential market leaders.“The Nifty50 ETF reflects our commitment to provide largecap investment options, while the Nifty Bank ETF, comprising leading banking stocks, offers opportunity to participate in a sector which is the backbone of the Indian economy. Both products embody our dedication to a diverse basket of products that cater to a variety of investor needs,” said Ganesh Mohan, CEO, Bajaj Finserv Asset Management.“These ETFs offer investors more affordable, rule-based, zero-bias strategies that focus on keeping investing very simple. We feel this is a good time to launch Nifty Bank ETF as the banking sector is poised to record substantial growth in the coming years. While, Nifty 50 Index has historically delivered attractive returns which makes it suitable for new investors who are looking to participate in equity markets with a reasonably diverse large cap portfolio,” said Nimesh Chandan, CIO, Bajaj Finserv Asset Management.
The fund house aims to provide investors with a diversified and transparent investment avenue that aligns with the market movements, according to the press release by the fund house.
Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF offer advantages such as continuous liquidity provided by the Authorized Participant (AP) on the exchange and closely tracking real-time Net Asset Value (NAV) or indicative NAV (iNAV). With a lower spread on the exchange, it provides a reduced effective spread, factoring in Securities Transaction Tax (STT) and brokerage, said the press release.
