About Us

Investment Philosophy

Our Investment philosophy reflects the idea, that we as an organization believe may generate a good return on equity investment in the long term, for our investors. It dictates our goals and guides decision making.

Equity
At Bajaj Finserv Asset Management, we focus on the fundamental attributes of companies. We believe it is the quality of the company’s business and management that creates or destroys wealth for the investors over the long term. And since the markets are not completely efficient i.e. they don’t factor in the future accurately into the prices, there is an opportunity to invest in good companies at a price which may be lower than their intrinsic value.
To achieve our objective in a disciplined pursuit, we have a three-stage investment process. This process encompasses all the important aspects of fundamental research (information edge). It also involves tools developed internally which support better analysis (analytical edge) and improve decision making (behavioural edge). It is a process that is conscious of market inefficiencies and biases.

Fixed Income
For the fixed income market, the most important aspect is the quality of the asset. Our focus is to create an investment universe of borrowers who have the ability to service and pay back the debt. We evaluate whether there is adequate cover and understand the covenants wherever applicable on securities.
Next comes liquidity management. Here, we use tools to monitor liquidity and duration of the portfolio. It is important to conduct the stress tests regularly to understand portfolio liquidity risk.
Returns have to be evaluated under the lens of risk-adjusted return. We wouldn’t compromise on the quality curve for higher returns. Right selection of security and duration seeks to provide the investors reasonable returns without taking commensurate risk.
Our investment philosophy guides us on our goals and our investment process provides the path to it.