Bajaj Finserv AMC has announced the launch of the Bajaj Finserv Low Duration Fund, an open-ended low-duration debt scheme.
This fund is designed for investors who want short-term income, along with liquidity and flexibility.
The New Fund Offer (NFO) will open on February 9, 2026, and close on February 16, 2026.
Fund Details and Key Information
Here are the main details of the Bajaj Finserv Low Duration Fund:
Fund Name: Bajaj Finserv Low Duration Fund
Fund Type: Open-ended low duration debt scheme
NFO Open Date: February 9, 2026
NFO Close Date: February 16, 2026
Minimum Investment: ₹5,000
SIP Amount: ₹1,000
Exit Load: Nil
Benchmark: Nifty Low Duration Debt Index AI
Risk Level: Moderate Risk
Fund Managers: Nimesh Chandan and Siddharth Choudhary
Risk Class: Potential Risk Class B-III (relatively high interest rate risk and moderate credit risk)
Entry Load: Nil
Macaulay Duration and Investment Objective
The fund will have a Macaulay duration of 6 to 12 months, which makes it suitable for investors with surplus or idle funds.
According to the fund house, this scheme aims to be a better alternative to traditional savings options. It may offer better income opportunities while avoiding the high volatility usually seen in equity markets.
Where Will the Fund Invest?
The fund will invest in a diversified portfolio of debt and money market instruments, including:
Money market securities
Corporate bonds
Non-convertible debentures (NCDs)
Third-party repos
Treasury bills
Repos on government securities
The fund will actively manage liquidity and interest rate risk. While the overall duration will remain low, it may also invest in limited long-term securities when needed.
Who Should Invest in This Fund?
This fund is ideal for investors who want to park excess money for 6 to 12 months. It is also useful for systematic investment strategies, such as using a Systematic Transfer Plan (STP) to gradually move money into equity or hybrid funds. This helps reduce market entry risk while still earning income during the investment period.
Fund Manager’s View
Nimesh Chandan, CIO of Bajaj Finserv AMC, said that low-duration funds are suitable for investors looking for stable returns with low volatility.
He explained that interest rates are currently stable, but short-term yields are high due to a slight liquidity shortage in the market, not because of any major economic problem.
He also said that with the start of the new financial year and possible RBI liquidity support, market pressure may reduce. This could give investors a chance to earn regular income and possible capital gains.
Easy Access and Investment Flexibility
The fund is jointly managed by Nimesh Chandan and Siddhartha Choudhary.
Investors can start investing with just ₹5,000, and SIPs are available from ₹1,000.
There are no entry or exit loads, making the fund flexible and easy to access for all types of investors.
