Bajaj Finserv launches Banking & Financial Services Fund to tap India’s fast-growing digital finance ecosystem

Bajaj Finserv Asset Management Ltd has announced the launch of its Banking and Financial Services Fund, an open-ended equity scheme aimed at capturing opportunities emerging from India’s rapidly accelerating digital finance landscape. The New Fund Offer (NFO) opened on November 10 and will close on November 24, 2025.

The company said India’s digital transformation — from UPI payments to online lending and fintech-led financial inclusion — is reshaping how consumers and businesses access financial services. The new fund seeks to invest in companies leading and benefiting from these structural shifts.

According to industry data, UPI transaction value has surged nearly fivefold, rising from ₹41 trillion in FY21 to ₹236 trillion in FY25. Non-cash household transactions are projected to increase from 38% in FY23 to 62% in FY28, underscoring India’s move toward a digitally enabled payments economy.

The fund will also tap into the growth of digital lending, which is expanding beyond metros. Tier-2 and smaller cities are expected to account for more than 80% of digital disbursements — estimated at around USD 60 billion — by FY28. Fintech-driven lending innovations are enabling individuals, small businesses, and borrowers new to credit to access funds with fewer barriers.

Government initiatives like the Pradhan Mantri Jan Dhan Yojana have strengthened India’s financial inclusion framework. Jan Dhan accounts have multiplied nearly 18 times in a decade, from 33 million in FY14 to 540 million in FY24, with deposits touching ₹2.3 trillion. Direct benefit transfers delivered through these accounts have boosted efficiency and reduced leakages.

Bajaj Finserv AMC said the new fund will invest across banks, NBFCs, insurers, fintechs, asset managers and other companies aligned with these long-term megatrends. The portfolio is expected to comprise 45–60 stocks selected from a universe of around 180–200 BFSI-sector players.

“For investors looking to align with India’s digital finance transformation, this fund offers diversified exposure to multiple growth drivers within the financial ecosystem,” the company said.

The scheme will reopen for subscriptions within five business days from the allotment date. Investors have been advised to read all scheme-related documents carefully as mutual fund investments are subject to market risks.