Bajaj Finserv ELSS Tax Saver Fund - Direct (G): NFO Details

Investment Objective and Strategy

Objective:

To generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities while offering deduction on such investment made in the scheme under Section 80C of the Income Tax Act, 1961. 

However, there is no assurance that the investment objective of the Scheme will be achieved.

Investment Strategy:

The Bajaj Finserv ELSS Tax Saver Fund - Direct (G) adopts a growth-oriented investment strategy, focusing on long-term wealth creation through disciplined equity investments. The fund emphasizes a diversified portfolio of high-quality stocks across various sectors and market capitalizations, leveraging thorough research and a bottom-up stock selection approach. It aims to capture growth opportunities in companies with strong fundamentals, sustainable business models, and robust growth potential. By blending core and tactical allocations, the fund seeks to balance risk and reward while taking advantage of market dynamics. The mandatory three-year lock-in period further allows the fund manager to take a long-term view, minimizing the impact of market volatility.

Why Invest in Bajaj Finserv ELSS Tax Saver Fund - Direct (G)?

• Tax Benefits: Save up to ₹1.5 lakh annually under Section 80C.
• Wealth Creation: Long-term capital growth through equity investments.
• Lower Costs: Direct plan with reduced expense ratios for higher returns.
• Diversified Portfolio: Exposure to high-quality stocks across sectors and market caps.
• Professional Management: Expertise in stock selection and risk management.
• Mandatory Lock-in: Encourages disciplined, long-term investment approach.

Strength and Risks - Bajaj Finserv ELSS Tax Saver Fund - Direct (G)

Strengths:

The Bajaj Finserv ELSS Tax Saver Fund - Direct (G) stands out for its robust equity-driven approach, combining tax efficiency with long-term wealth creation. Its diversified portfolio minimizes concentration risk while capitalizing on growth opportunities across sectors and market caps. Managed by experienced professionals, the fund employs a research-driven, bottom-up strategy to identify high-potential stocks with strong fundamentals. With a lower expense ratio in the direct plan, it enhances cost efficiency, ensuring better returns for investors. The three-year lock-in period aligns with long-term goals, reducing short-term volatility concerns and fostering disciplined investing.

Risks:

Risks of Bajaj Finserv ELSS Tax Saver Fund - Direct (G):

• Market Risk: As an equity-focused fund, returns are subject to market volatility and economic fluctuations.
• Concentration Risk: Although diversified, sectoral or stock-specific overexposure may impact performance during downturns.
• Lock-in Period: The mandatory 3-year lock-in restricts liquidity, making it unsuitable for short-term needs.
• Performance Risk: Returns are not guaranteed and depend on market performance and fund manager decisions.
• Economic and Policy Risks: Macroeconomic changes or adverse government policies could affect equity markets and fund performance.

Investors should consider their risk appetite and investment horizon before investing.