Bajaj Asset Management has launched the Bajaj Finserv BSE Top 10 Banks ETF, with the New Fund Offer open from July 13 to July 15, 2026. This passive fund tracks the ten largest banking stocks on the BSE, providing investors with a low-cost, rules-based investment option in the Indian banking sector.
Bajaj Asset Management has expanded its product offerings with the launch of the Bajaj Finserv BSE Top 10 Banks ETF. The New Fund Offer (NFO) for this scheme began on July 13, 2026, and will remain open for subscription until July 15, 2026. This launch allows investors to gain exposure to the banking sector through a passive investment strategy, which aims to replicate the performance of the BSE Top 10 Banks Total Return Index.
Investment Structure and Costs
The fund is designed to mirror the largest ten banks listed on the BSE 500, with rankings determined by their free-float market capitalization. By using a passive approach, the fund eliminates the need for active stock selection, focusing instead on tracking the index composition. Investors can participate in the NFO with a minimum investment of ₹500, and additional investments can be made in multiples of ₹1. The fund house has confirmed that there are no entry or exit loads applicable to this ETF, which helps keep the overall cost of investment lower for retail participants.
Portfolio Diversification and Risk Management
To prevent the over-concentration of capital in any single institution, the underlying BSE Top 10 Banks Index follows specific rebalancing rules. The index undergoes rebalancing every six months to align with the latest market data. Furthermore, it enforces caps on individual stock weights at 33%, while the combined weight of the top three banking constituents is restricted to a maximum of 63%. This structure is intended to manage concentration risk, a common concern for investors tracking index-heavy sectors.
Operational Details and Management
Once the NFO period closes, the ETF units will be listed on stock exchanges, allowing investors to buy or sell them during regular market hours just like individual stocks. The fund will be managed by Ilesh Savla, who serves as the Senior Equity Dealer and Fund Manager at Bajaj Asset Management. While the fund provides direct exposure to top-tier banks, Bajaj Asset Management has classified the product under a 'Very High' risk profile, consistent with thematic equity investments that concentrate on a single sector. Because the fund is heavily tied to the performance of a small group of large banks, its returns will be directly influenced by interest rate cycles, regulatory changes affecting the banking sector, and the overall credit growth in the Indian economy. Investors looking to add this to their portfolio should monitor these sector-wide factors alongside the fund's expense ratio once it becomes operational after listing.