Bajaj Finserv Enters Mutual Fund Sector, Aims to Tap Growing Market Valued at ₹40 Lakh Crore
In an ambitious move, Bajaj Finserv, the diversified financial services group, has announced the launch of its ninth entity, Bajaj Finserv Mutual Fund. With 40 competitors already operating in the sector, collectively managing an astounding ₹40 lakh crore of public funds, Bajaj Finserv enters the market poised for significant growth.
Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, revealed in an exclusive interaction with Moneycontrol that the group aims to reduce the proportion of loans facilitated through phone or telemarketing to less than 10%. According to Bajaj, the long-term objective is to eliminate this aspect entirely, shifting focus solely to service-related calls. These proactive measures emphasize the company’s commitment to customer satisfaction and its endeavor to enhance overall user experience.
Bajaj Finserv recognizes the importance of providing users with options to personalize their interactions with the company. As part of their commitment to customer privacy, Bajaj stated, “We want to give people the right to be forgotten by us,” ensuring that users have the freedom to choose whether they wish to be contacted again.
Bajaj Finserv’s foray into the mutual fund sector is strategically aligned with its existing eight subsidiaries, collectively serving close to 70 million customers. Leveraging its strong customer base, the group aims to attract the same clientele to its new venture. Despite being a late entrant to the market, Bajaj remains unfazed and highlights the advantages of entering the sector with a wealth of industry knowledge and insights into successful practices.
As regulatory scrutiny intensifies within the sector, Bajaj Finserv remains undeterred. Ganesh Mohan, the CEO of Bajaj Finserv Mutual Fund, expressed confidence in the industry’s potential, citing the immense growth it has experienced over the past seven years. With the industry’s assets under management (AUM) tripling to ₹40 lakh crore during this period, Mohan believes there is ample room for new players to thrive. Drawing comparisons to international markets, he noted that even smaller countries like Singapore and England have over 1,000 asset management companies (AMCs), while the United States boasts a significantly higher number. Given India’s vast and rapidly growing economy, Mohan envisions significant opportunities for the mutual fund sector to flourish.
Bajaj Finserv’s entry into the mutual fund industry showcases its determination to diversify its financial product offerings further. With its strong customer base, commitment to customer privacy, and a deep understanding of industry dynamics, Bajaj Finserv Mutual Fund aims to carve out a substantial presence in the evolving market, driving innovation and growth in the financial services sector.