Bajaj Asset Management Limited has launched the Bajaj Finserv Business Cycle Fund, a new open ended equity scheme from Bajaj Finserv Mutual Fund. The NFO (new fund offer, the window when a fund first sells units) runs from 20-11-2026 to 04-12-2026.
The fund aims to grow your money over the long term by owning companies that suit the stage the economy is in. It moves between sectors as conditions change.
Whether that suits you depends on your goal, time frame and comfort with ups and downs.
Also read: New fund offer (NFO) guide.
Bajaj Finserv Business Cycle Fund NFO details
Fund name | |
Fund type | Open ended equity scheme investing in a business cycles based theme |
Category | Thematic fund |
Nature of scheme | Actively managed equity scheme |
Benchmark | BSE 500 TRI (total return index, which counts dividends as well as price gains) |
Fund managers | Sorbh Gupta (Head, Equity); Bharat Hegde (Associate Fund Manager); Siddharth Chaudhary (Head, Fixed Income, debt portion) |
NFO opens | 20-11-2026 |
NFO closes | 04-12-2026 |
Allotment & reopening date | On or around 11-12-2026 (5 working days after NFO closes) |
Minimum investment | ₹500 and in multiples of ₹1 |
Additional investment | ₹100 and in multiples of ₹1 |
SIP amount | ₹500 and above per instalment, minimum 6 instalments |
NAV | ₹10 per unit |
Stamp duty | 0.005% |
Entry load | NIL |
Exit load | 1% if redeemed or switched out within 3 months of allotment; nil after |
AMC details
AMC name | Bajaj Asset Management Limited (formerly Bajaj Finserv Asset Management Limited) |
Assets under management | ₹5,84,624 crores |
Website | |
Registered office | S. No. 208/1B, Lohagaon, Viman Nagar, Pune 411014 |
Contact number | 1800-309-3900 (toll free) |
Source: AMFI India New fund offer: Bajaj Finserv Business Cycle Fund
What has the AMC launched?
This is an open ended equity scheme in SEBI’s thematic category. Open ended means you can buy and sell units on any business day after the NFO. Thematic means it follows one idea, here the business cycle: the repeating pattern of growth, slowdown and recovery in an economy.
It is an actively managed fund, so the managers choose sectors and stocks themselves. At least 80% of the money goes into companies picked on the business cycle theme. Up to 20% can go elsewhere.
Unlike a sector fund, it is not tied to one industry or company size, and it may stay out of some sectors at times.
How does the strategy work?
Step | What happens? |
1. Read the cycle | The team judges whether the economy is expanding, peaking, slowing or at a low. |
2. Pick leading sectors | It prefers sectors expected to beat the broader market at that stage. |
3. Find companies | It studies each company’s business, management and valuation. |
4. Apply INQUBE | The AMC’s in-house INQUBE approach looks for information, quantitative and behavioural edges. |
5. Size positions | Companies are filtered on size, quality, valuation, growth outlook and risk before weights are set. |
6. Review as the cycle turns | Weights shift when the stage changes, so some sectors may be missing at times. |
A simple example of how this fund works
Picture an economy recovering from a slowdown. Demand is picking up, so the manager may hold more sectors that gain from rising spending. Later, growth looks stretched, so the manager may move towards steadier sectors.
This shows the process only. It is not a forecast, a sector list or a sample portfolio.
How will this NFO allocate its assets?
Instrument | Minimum | Maximum |
Business cycle equity and equity related instruments | 80% | 100% |
Other equity and equity related instruments | 0% | 20% |
Money market and liquid instruments, InvITs, gold and silver ETFs, liquid funds | 0% | 20% |
It may invest up to 20% overseas. It may use derivatives (contracts whose value depends on another asset) for hedging, meaning protection, and other purposes, up to 50% of equity assets each. See our asset allocation page.
Investment strategy and risk controls
Stock selection. A top down view of the economy is paired with bottom up company research. The fund may hold concentrated positions in its favourite companies under the theme.
Risk controls. Debt must be investment grade, and the AMC’s risk team reviews each issuer. If markets push the fund outside its allocation, it must rebalance within 30 business days.
Liquidity. The AMC has 30 business days after allotment to invest the NFO money. Meanwhile it may park cash in short term government backed lending, liquid funds or bank deposits.
Potential benefits of this fund
Potential benefit | Why does it matter? |
Flexible across sectors | The fund can shift as the economy moves instead of staying in one sector. |
Not limited by company size | It can hold large, mid and small companies. |
Defined research process | The INQUBE approach guides stock selection. |
Spread across sectors | The SID says the portfolio will be diversified by sector and market capitalisation. |
Low entry amount | You can start with ₹500, as a lumpsum or SIP. |
Open ended | You can redeem on any business day. |
Key risks of this NFO
Risk | What does it mean? |
Market risk | Markets, rates, policy and global events move prices, so the NAV can rise or fall. |
Theme and concentration risk | A single theme and concentrated positions mean a few wrong calls hurt more. |
Cycle timing risk | The managers may misjudge the stage of the cycle. |
Liquidity risk | Thinly traded shares may be hard to sell at a fair price. |
Derivatives risk | Futures and options can lose value if prices move unexpectedly. |
Overseas and currency risk | Foreign holdings can lose value if the rupee moves against other currencies. |
Interest rate and credit risk | The small debt part can fall when rates rise, and an issuer may fail to repay. |
Who may consider this fund?
These points are our interpretation, not SID statements.
Investor type | Why it may fit |
Goal 7 to 10 years away, such as retirement | Time to ride out slowdowns and recoveries. |
Existing diversified equity investor | A smaller slice with a sector rotation style. |
Investor who can sit through weak phases | Theme funds can lag before the cycle turns. |
Salaried SIP investor starting small | The ₹500 SIP minimum keeps the first step low. |
Also read: Should you invest in a new fund offer (NFO)?
Who may not find it suitable?
Investor type | Why it may not fit |
Needs the money within 3 to 5 years | Equity can fall in the short term, and a 1% exit load applies within 3 months. |
Wants to match the market | The fund is actively managed, so results depend on the managers’ calls. |
Dislikes sharp swings | A theme fund can fall more than a broad fund. |
Has no emergency fund | A forced exit in a weak market can lock in losses. |
How does it compare with traditional investment options?
Option | Risk | Return potential | Volatility | Liquidity | Horizon | Suitable investor |
Fixed deposit | Low | Fixed, usually lower | Very low | Early exit may carry a penalty | 1 to 5 years | Safety seeker |
Debt mutual fund | Low to moderate | Moderate | Low to moderate | High | 1 to 3 years | Stability seeker |
Hybrid fund | Moderate | Moderate to higher | Moderate | High | 3 to 5 years | Balanced investor |
Equity mutual fund | High | Higher, not assured | High | High | 5 years or more | Growth seeker |
This new fund | Higher | Higher, not assured | High | High; 1% exit load | 5 years or more | Long term, theme tolerant |
The table is general and does not rank products.
NFO review by Zenith Finserve
This fund fits a goal at least five to seven years away, held next to a core diversified equity fund. The managers must judge where the economy is heading and which sectors will lead. That is a judgement call, and no returns are promised.
Because it can hold fewer sectors than the broad market, it will behave differently from its benchmark, the BSE 500 TRI. Expect stretches where it trails and others where it leads. Think of it as a smaller slice next to a diversified core.
As a new fund, it has no record to check. Ask whether you need this money inside five years. If you do, a different product fits better. Match it to your time horizon before you apply.
How Zenith Finserve can help
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments.
We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Explore our mutual fund advisory services.
Similar NFOs on Zenith and how this fund compares?
Part A: open Zenith coverage. No other business cycle NFO is covered yet. These open NFOs give context:
- Parag Parikh India Flexi Cap Fund NFO: active flexi cap fund; open until 27-11-2026.
- Abakkus Dynamic Asset Allocation Fund NFO: active asset allocation fund; open 16-11-2026 to 30-11-2026.
- Invesco India Nifty Metal Index Fund NFO: passive single sector fund; opens 16-11-2026.
Part B: comparison with existing funds. Both follow a business cycle theme. Figures come from each AMC’s own page, as of the dates shown.
Item | This NFO | ||
Mandate | Active; 80% to 100% in business cycle equities | Shifts between cyclical and defensive sectors | Top down sector calls, then stock picking |
Benchmark | BSE 500 TRI | Nifty 500 TRI | Nifty 500 TRI |
Costs | Base expense ratio up to 2.10% | Base expense ratio: Regular 1.87%, Direct 0.87% | Total expense ratio 1.97% on 29-05-2026 (plan not stated) |
Liquidity | Exit load 1% within 3 months | Within 1 year, nil on up to 10% of units, 1% on the rest | Exit load 0.5% within 90 days |
Key risk | Theme and cycle timing | Same | Same |
Launch and record (Regular Growth) | Opens 20-11-2026; no record yet | Launched 20-08-2014. July 2026: 1 year -0.66%, 3 years 14.26%, 5 years 14.94% (Nifty 500 TRI: 3.37%, 12.29%, 12.53%) | Launched 28-09-2022. 31-05-2026: 1 year 4.17%, 3 years 15.22%, since launch 14.42% |
Why these two: same theme. HSBC has the longer record, and Kotak uses the same top down then bottom up process.
Past performance may or may not be sustained. A base expense ratio excludes GST and brokerage, so it is not a like for like match with a total expense ratio.
Is Bajaj Finserv Business Cycle Fund NFO good to invest in?
It depends on your goal and your comfort with ups and downs. The fund is an actively managed equity scheme that follows a business cycle theme, so it can lag the broader market for long stretches.
It has no track record yet. It may suit a long term goal as a smaller slice next to a core equity fund. Check your time frame first, then decide.
What is the Bajaj Finserv Business Cycle Fund review in one line?
It is a new, actively managed thematic equity fund that rotates across sectors and company sizes as the economy moves through its cycle. Its strengths are flexibility and a defined research process.
Its limits are theme concentration, dependence on the managers’ calls and the lack of any track record. The full NFO review above covers fit, risks and time frame.
What does Bajaj Finserv Business Cycle Fund invest in?
It invests 80% to 100% in equity and equity related instruments of companies picked on the business cycle theme.
Up to 20% can go to other equity, money market instruments, liquid instruments, InvITs, gold and silver ETFs, and units of liquid, overnight and money market funds. It may also invest up to 20% overseas and use derivatives within SEBI limits.
When does the Bajaj Finserv Business Cycle Fund NFO open and close?
The NFO opens on 20-11-2026 and closes on 04-12-2026, according to the AMC’s scheme page. Units are expected to be allotted on or around 11-12-2026, 5 working days after closing.
The SID leaves the dates blank, so confirm them on the AMC’s website before you apply. SEBI allows an NFO to stay open for at most 15 days.
What is the minimum investment and SIP amount in this NFO?
You can invest from ₹500 as a lumpsum, in multiples of ₹1. SIPs start at ₹500 per instalment for a minimum of 6 instalments, with daily, weekly, fortnightly, monthly and quarterly options.
After the NFO, each additional purchase starts at ₹100. The NFO price is ₹10 per unit.
What is the exit load of the Bajaj Finserv Business Cycle Fund?
The exit load is 1% of the applicable NAV if you redeem or switch out units within 3 months of allotment.
After 3 months, no exit load applies. Entry load is NIL and stamp duty is 0.005%. The exit load applies to each purchase, including each SIP instalment, so every instalment has its own 3 month clock.
What is a business cycle, and why does it matter for a mutual fund?
A business cycle is the repeating pattern of growth, slowdown and recovery in an economy. The SID describes four phases: expansion, peak, contraction and trough.
Different sectors tend to lead in different phases, so a fund that reads the phase well may hold the right sectors at the right time. Misreading the phase can cost you.
Who are the fund managers of the Bajaj Finserv Business Cycle Fund?
Sorbh Gupta, Head of Equity, and Bharat Hegde, Associate Fund Manager, manage the equity portion. Siddharth Chaudhary, Head of Fixed Income, manages the debt portion.
Mr Gupta has over 18 years of experience in Indian capital markets, and Mr Chaudhary has worked in treasury and fixed income since 2006.
Does this fund have a lock-in period?
No. It is an open ended scheme, so you can redeem on any business day.
The SID says redemption proceeds are dispatched within 3 working days, and the scheme reopens for sale and repurchase within 5 working days of allotment. An exit load of 1% applies if you leave within 3 months.
Which benchmark does the fund use, and what does TRI mean?
The fund is benchmarked to the BSE 500 TRI. TRI stands for total return index, which counts dividends as well as price changes. The index covers the top 500 companies across large, mid and small sizes.
The SID says it suits the fund because the portfolio will not be tied to any market cap and will be spread across sectors.
What is the difference between the Regular and Direct plans?
Both plans invest in the same portfolio but have separate NAVs. The Direct plan is for investors who buy straight from the fund, and the Regular plan is for those who invest through a distributor with an ARN code.
Each plan offers a Growth option and an IDCW (income distribution cum capital withdrawal) option. Growth is the default option.
How long should I stay invested in a business cycle fund?
The SID says the fund aims at long term wealth creation but gives no fixed period.
In our view, a business cycle fund needs enough years to cover at least one slowdown and recovery, so five to seven years is a reasonable minimum.
Invest only money you will not need earlier, and review the fund once a year.
