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Savings+ is a new and innovative facility provided by Bajaj Finserv Asset Management Ltd that helps investors make their idle money work for them. It helps you seamlessly invest surplus funds from your account into the Bajaj Finserv Liquid Fund or Bajaj Finserv Overnight Fund. Both are low-risk/low-to-moderate risk debt mutual funds that are relatively stable, highly liquid, and have the potential to offer better returns than traditional savings accounts.
Manage Your Idle Money With Savings+
This article tells you more about how Savings+ can help you manage your idle money smartly and potentially earn higher returns on it than with a regular savings account at a higher risk than savings account.
How does Savings+ work
Traditional bank accounts are popular for their safety and reliability, but typically offer low returns that may not keep up with inflation. That’s where Savings+ can come in. By helping you transfer an amount of your choosing seamlessly from your bank account to the Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund, Savings+ encourages you to reap the relatively higher return potential of these debt mutual funds.
The minimum investment amount is just Rs 100, and you can invest whenever you have extra funds – there is no fixed investment schedule you need to adhere to. However, it is recommended that you invest regularly to build a disciplined investing habit and tap into the growth potential of these schemes.
Plus, you always have easy access to your money, as Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund offer insta-redemption. This means you can instantly redeem up to 90% of your funds, or Rs. 50,000, whichever is lower. The balance amount, if redeemed, will be credited to your account within one business day.
How to put extra money in Savings+
Investing in mutual funds is easier than ever with Savings+. Through a quick and straightforward process, you can transfer funds to the Bajaj Finserv Liquid Fund or Bajaj Finserv Overnight Fund in minutes. Here are the steps involved:
Visit the Savings+ page on www.bajajamc.com and click on ‘Invest Now‘. Then, log in or sign up on the investor portal and navigate to Savings+.
Provide some basic details such as your PAN and link your bank account. On the Savings+ transaction portal, you will be shown the typical surplus funds in your bank account – money that lies idle after all your investments/expenses have been made. With this information at your fingertips, you can make informed decisions about how much to invest. However, you need not invest all your surplus money – you can choose any amount starting from Rs. 100.
Enter your investment amount and choose between the Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund.
You can also track the progress of your investments whenever you wish to by logging into the investor portal and looking at your portfolio summary.
Benefits of Savings+ for idle money investment
By using Savings+ for your surplus funds, you can access the benefits of low-duration debt funds. Here are some of the benefits of Savings+
Market-driven returns: Unlike savings accounts, which offer fixed but low returns, liquid and overnight funds offer returns based on market movements. They have the potential to offer higher returns than savings accounts and are less risky than long-duration debt funds and equity funds. However, unlike with bank accounts, returns are not guaranteed with Savings+ investments.
Flexible investing: With Savings+, you can make lumpsum investments whenever you wish to – there is no fixed schedule. However, you are encouraged to follow a disciplined savings schedule to optimise return potential.
Gradual transition from saving to investing: You can invest any amount of your choosing, starting at Rs. 100. So, if you’re risk-averse and are unsure about mutual fund investments, you can start with a nominal amount and assess the risk-reward balance of the investment.
Strategies for optimising Savings+
Maintain investment discipline: Even though you can invest as you wish, consider establishing a routine similar to an SIP investment by consistently setting aside a fixed monthly amount.
Top-up your investments when you have extra funds: In months when you have extra money available, you can add to your Savings+ investment.
Limit redemptions: While having easy access to your money through liquidity and instant redemption is beneficial, try to use your investment for its intended purpose. If it is meant for emergency, use it only for important and unforeseen expenses.
Set larger investment goals: Although liquid and money market funds can be suitable for short-term goals or emergency funds, they usually dont generate long-term capital growth. An effective investment plan should consider short, medium, and long-term goals.
Conclusion
Savings+ by Bajaj Finserv Asset Management Ltd offers a smart way to manage idle cash by investing in low-risk, highly liquid fixed-income instruments. By keeping a portion of your money in your bank account and investing an amount of your choosing through Savings+, you can combine the stability of your savings accounts with the potential for higher returns from liquid and overnight funds. Whether you need to maintain an emergency fund or save for short-term goals, Savings+ offers a flexible and potentially rewarding investment option.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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