InQuBe - Our investment philosophy
With a vision of generating potential long-term returns for its investors, Bajaj Finserv AMC embraces a unique approach – the InQuBe Investment Philosophy. Let us take you through the core of this investment philosophy, which can guide investors to potential success in mutual fund investments.
InQuBe investment philosophy
At the heart of this philosophy lies a deep appreciation for the fundamental attributes of our company. Bajaj Finserv AMC believes that a company's underlying quality and management play pivotal roles in creating wealth for investors in the long run. And since the markets are not entirely 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.
So, how do we embark on this disciplined pursuit of investment excellence?
Let's delve into the three pillars that underpin Bajaj Finserv AMC InQuBe investment philosophy:
The first pillar, the Information Edge, speaks of the ability to collect relevant information about economies, businesses, and markets ahead of the others. Armed with superior information, we strive to outperform the market.
The second pillar, the Analytical Edge or Quantitative Edge, is a requirement of processing information. Even when the investors don't possess material information, Bajaj Finserv AMC seeks to develop models and algorithms to potentially gain the upper hand in forecasting market moves.
Lastly, the third pillar, the Behavioral Edge, reveals our knack for making optimal decisions by capitalizing on market anomalies arising from behavioural factors. By taking advantage of market overreactions and underreactions, we seize opportunities that others might overlook. Moreover, we continuously enhance our own decision-making processes to avoid behavioural pitfalls.
But the journey doesn't end there. We recognize that our InQuBe investment philosophy isn't a destination, but rather a guide to achieving our goals. We believe our investment process would allow us to withstand the ever-changing landscape of investments.
Fixed-income market
When it comes to the fixed-income market, we adopt a meticulous approach to ensure the quality of the assets. Our focus is to create an investment universe of borrowers who can service and pay back the debt.
Liquidity management
Liquidity management takes centre stage, where we employ tools to monitor the liquidity and duration of the portfolio. Regular stress tests enable us to gauge and understand portfolio liquidity risks effectively.
Risk adjustment
Returns must be evaluated under the lens of risk-adjusted return. We firmly believe in not compromising on quality for the sake of higher returns. The meticulous selection of securities and durations allows us to deliver potentially reasonable returns to investors without taking on excessive risk.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views / opinions or as an investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.