Building your portfolio for tomorrow with Bajaj Finserv Banking and Financial Services Fund

Over the past few years, the way we manage money has changed dramatically. From digital payments and mobile expense trackers to online investing and borrowing, our financial lives have become faster and more connected. Now, imagine this shift playing out across a country of over a billion people, that’s the scale of transformation reshaping India’s financial landscape today.

The Bajaj Finserv Banking and Financial Services Fund is built around this shift. It focuses on long-term trends, called megatrends, that are shaping the future of how India banks, spends, and invests. Through a well-defined process and the InQuBe investment philosophy, it looks for companies that may benefit as these changes gather pace.

The New Fund Offer is currently live, having opened on Monday, November 10, 2025, and will close on Monday, November 24, 2025. The scheme will reopen for subscriptions within five business days after allotment.

Investing in megatrends shaping India’s financial future

Every major change in the financial world begins with a trend that builds quietly over time. This fund looks at five such megatrends, i.e. technology, economy, regulation, demographics, and society, to identify where the next opportunities may come from.

Technology: The rise of digital payments and lending
India is moving steadily toward becoming a cash-light economy. Non-cash transactions are expected to grow from 38% in FY23 to 62% in FY28. That means more digital payments, more online lending, and more inclusion. What’s remarkable is how this change is no longer limited to big cities. Tier 2 and smaller towns are likely to account for over 80% of the roughly USD 60 billion in digital lending disbursements by FY28 (estimates). The future of finance, it seems, is truly digital and increasingly local.

Economic: Financial inclusion through Jan Dhan accounts
Ten years ago, opening a bank account wasn’t always easy. Today, it’s almost universal. The number of Jan Dhan accounts has gone up nearly eighteen times, from 33 million in FY14 to 540 million in FY24, with deposits totalling Rs. 2.3 trillion. These accounts have helped the government deliver benefits directly and made banking part of everyday life for millions. Financial inclusion like this lays the foundation for a stronger, broader financial system.

Demographic: A younger, more prosperous India
India’s working-age population is rising, and so are household incomes. By 2030, around three-fourths of all Indian households are expected to fall into middle- and high-income categories. With this shift comes a greater need for loans, insurance, and investment options. As more people earn and save, demand for financial services is set to grow, creating opportunities for the entire BFSI sector.

Social: Fintechs making credit more accessible
For many Indians, getting their first loan used to be difficult. Fintech companies have changed that. They’re offering small-ticket loans, personal loans, and business loans, especially to women and first-time borrowers. The combination of mobile internet, digital IDs, and online lending platforms has made credit easier to access. It’s a social shift that’s expanding opportunity and deepening financial inclusion.

Source: Reserve Bank of India, Periodic Labour Force Survey (2023), GSMA (2023), Mobikwick RHP, Redseer, Jeffries

How the fund builds its portfolio

The Bajaj Finserv Banking and Financial Services Fund doesn’t just pick stocks, it follows a clear, data-driven process. It starts with a large universe* of around 1,100 companies. From there, a megatrends filter narrows the list to about 180–200 names within the BFSI space.

Using the proprietary InQuBe framework, the list is then refined further to build a focused portfolio of around 45–60 stocks. This structured approach helps balance diversification with depth, spanning banks, NBFCs, fintechs, and other financial service players. The actual number of holdings may change depending on market conditions at the time of investment.

*The portfolio count is indicative, and actual number will depend on market conditions at the time of making investment.

The thinking behind the InQuBe investment philosophy

The InQuBe investment philosophy is what drives how the fund is managed. It’s based on three simple but powerful ideas, having the suitable information, analysing it effectively, and understanding investor behaviour.

1. Information edge
It starts with information. The idea is to gather meaningful insights early, about companies, sectors, or the broader economy. Having that information at the opportune time may help in identifying opportunities before they become obvious to the market.

2. Analytical or quantitative edge
Next comes analysis. Even when everyone has access to similar information, how it’s processed makes all the difference. Bajaj Finserv AMC uses models and algorithms to study patterns and trends, helping make data-driven decisions rather than emotional ones.

3. Behavioural edge
Finally, there’s behaviour, the most human part of investing. Markets often overreact or underreact to events, and that creates opportunities. By recognising these behavioural patterns, the investment team may identify value where others aren’t looking. It’s also about constantly learning from past decisions to make future ones more balanced.

Together, these three edges, information, analytical, and behavioural, form the foundation of how the fund approaches investing.

Conclusion

If you’ve been thinking about how to make your portfolio more future-ready, this may be one way to start. The Bajaj Finserv Banking and Financial Services Fund aims to look at where India’s financial system is heading, not just where it stands today. It combines megatrend-based insights with a structured process to help you participate in that journey.

Whether you prefer a one-time investment or a systematic investment plan, this fund may offer a suitable way to align your portfolio with India’s fast-evolving financial landscape.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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