Bajaj Finserv Asset Management Limited announces the launch of Bajaj Finserv Low Duration Fund, an open ended low duration debt scheme designed for investors seeking short-term income with liquidity and flexibility. The New Fund Offer (NFO) opens on February 9, 2026, and will close on February 16, 2026. The Bajaj Finserv Low Duration Fund will maintain a Macaulay duration between 6 months and 12 months, positioning it as a suitable solution for investors with surplus funds.
Speaking on the fund’s launch, Nimesh Chandan, CIO, Bajaj Finserv AMC said, “The Low Duration Fund offers an all-weather solution for investors seeking consistent returns with low volatility at the short end of the yield curve. Although policy rates are near neutral, short-term yields remain elevated due to tight liquidity from a busy credit season rather than macro stress. As the new financial year begins, better rate transmission and calibrated RBI liquidity support should ease pressures, creating an opportunity to capture accrual income with potential capital gains. The fund actively manages liquidity and duration to deliver stable, risk-adjusted returns across cycles.”
The scheme aims to provide an alternative to traditional savings avenues by offering
potentially better accrual opportunities without exposure to equity market volatility. The fund will invest in a diversified portfolio of debt and money market instruments, including money- market securities, corporate bonds, Non-Convertible Debentures (NCDs), Triparty Repos on Government Securities, Treasury Bills and repos, while actively managing liquidity and interest rate risk. It may also have limited exposure to longer-maturity securities while keeping overall duration low.
The fund is ideal for investors looking to park surplus funds for 6–12 months and can also be used for phased allocation strategies, such as deploying money gradually into equity or hybrid funds through a Systematic Transfer Plan (STP), helping manage market entry risk while earning accrual income in the interim.
The scheme will be jointly managed by Nimesh Chandan and Siddharth Chaudhary and is
benchmarked against the NIFTY Low Duration Debt Index A-I. The scheme falls under Potential Risk Class B-III, indicating relatively high-interest rate risk and moderate credit risk.