Bajaj Finserv Asset to launch Nifty 50 ETF and Nifty Bank ETF

Bajaj Finserv Asset Management announces the launch of its first two new Exchange Traded Funds (ETFs) – Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF. The introduction of these ETFs is a strategic move aimed at providing investors with efficient and cost-effective investment options that track the performance of two key benchmark indices in the Indian stock market. These new schemes would be suitable for investors who are seeking long-term capital appreciation, investment in securities covered by Nifty 50 Index and Nifty Bank Index, and gain access to growth of potential market leaders.
The new fund offer will open for initial subscription on 15th January, and close on 18th January 2024. The scheme reopens for continuous sale and repurchase by 29th January 2024. The fund will be jointly managed by Mr. Sorbh Gupta and Mr. Ilesh Savla.
Both these ETFs will be available as tradeable securities for buying and selling on the BSE and NSE platforms by 29th January 2024.
The Bajaj Finserv Nifty 50 ETF and Bajaj Finserv Nifty Bank ETF are designed to replicate the performance of the Nifty 50 and Nifty Bank indices, respectively, subject to tracking error. These indices are widely regarded as barometers of the Indian equity market, comprising large-cap companies across various sectors. By offering ETFs linked to these indices, Bajaj Finserv AMC aims to provide investors with a diversified and transparent investment avenue that aligns with the market movements.
Bajaj Finserv Nifty 50 ETF and Nifty Bank ETF offers 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.
The funds aim to mirror the performance of benchmark indices, with the Bajaj Finserv Nifty 50 ETF aligning with the NIFTY 50 Index and the Bajaj Finserv Nifty Bank ETF mirroring the Nifty Bank Index. The objective is to closely correspond to the respective index returns, subject to tracking errors.
“We are pleased to offer our first two ETFs – the Nifty 50 ETF and Nifty Bank ETF. 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.” stated Mr. Ganesh Mohan, CEO, Bajaj Finserv Asset Management.”
Mr. Nimesh Chandan, CIO, Bajaj Finserv Asset Management said, “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”.