Bajaj Finserv banks rely on technology, the advantage of latecomers to make their mark in MF biz
Bajaj Finserv Mutual Fund, the newest company to enter the wealth management business, is leaning on the edge of last-mover and offering a differentiated product to make its mark in the futures business. Support is growing rapidly. Including this fund house, there are 41 companies in the space.
The fund house has received approval from the market regulator to launch four debt funds and three equity funds. It will launch liquidity, money market, overnight and arbitrage funds this month. It will then introduce large- and mid-cap funds, balanced advantages, and flexible capitalization.
As one of the most diversified and technology-based financial services groups, Bajaj Finserv MF also plans to launch a passive large-cap fund. The funder feels the active large-cap fund will find it difficult to beat the benchmark large-cap index due to its structure.
Full-stack service
Sanjiv Bajaj, CEO, Bajaj Finserv, said the company is committed to being a comprehensive financial solutions provider to meet India’s growing needs and build deep, long-term relationships. than customers who have invested in the company.
The latecomer advantage helps the company learn from the mistakes of others and capitalize on the success of its competitors so it doesn’t have to reinvent the whole wheel while offering a differentiated product, he said. for investors.
When asked if the group would apply for a banking license to complete its financial solutions group, Bajaj said the company can provide most banking services through its NBFC branch. The stack appears to be complete in the next five years, he adds, and there are no plans to apply for a banking license.
The company says more than 16,000 distributors have registered for the mutual fund business and it will leverage its 70,000 customers who have already experienced its various product offerings on NBFCs, fixed deposits, loans and insurance. dangerous.
The company will have 10 branches and invest heavily in technology to serve investors in smaller cities. The company’s latest technology empowers distributors in 15 seconds.
Common technology platform
Ganesh Mohan, CEO, Bajaj Finserv Asset Management, said the company plans to develop a common technology platform for distributors to handle all financial products including funds. support.
He said, even with nominal growth, the assets under management of the MF sector will touch 90-950,000 yen in fiscal year 2030 from 40,000 yen currently.
While investors feel that 41 mutual funds in India are too many, the US has 6,000 mutual funds compared to 1,000 and 800 in Singapore and Brazil, he added.
