MUMBAI: Diversified financial services group Bajaj Finserv has forayed into the mutual fund sector by launching a new Asset Management Company (AMC) Bajaj Finserv Mutual Fund on Tuesday, making it the 43rd player in the mutual fund industry with Asset Under Management (AUM) of above `40 lakh crore. The entry of Bajaj group will further intensify competition in the mutual fund industry, which is skewed in favour of big players with the top eight fund houses having a 75% share in industry AUM.
It will aim for differentiation and innovation to grow its business. “We have not set any target to grow our AUM because our focus is on innovation and differentiation,” said Sanjiv Bajaj, Chairman and managing director, Bajaj Finserv, addressing a press conference held to announce the launch of a new company. “We believe the asset management business positions Bajaj Finserv for an exciting new chapter of growth,” he added.
Despite being a late entrant, the management is confident about the prospects of growth of the new entity as the company hopes to leverage Bajaj group’s customer base of 10 crore to drive its mutual fund business. “The launch of asset management helps diversify our retail franchise and leverage Bajaj Finserv companies’ combined strength in financial services across a much larger customer base,” added Bajaj.
The mutual fund will launch three schemes in the fixed income, liquid and money market products by the end of the month, and will have four more soon, depending on regulatory approvals. “Yes, we’re a late entrant but not worried about that. In fact, we want to tap into the advantages of being the late entrant that places us on a better footing. Because this late entry gives us advantages of knowing what works and what doesn’t work,’’ explained Bajaj.