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Note: Historical Performance of this scheme is not available because this scheme has not completed 6 months since inception.
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Investment Objective
The investment objective of the scheme is to capitalize on the potential upside of equities while attempting to limit the downside by dynamically managing the portfolio through investment in equity & equity related instruments and active use of debt, money market instruments and derivatives.
However, there is no assurance that the investment objective of the Scheme will be achieved.
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Key Features
NFO Period
November 24, 2023 - December 8, 2023
Scheme Reopens: December 18, 2023
Scheme Reopens: December 18, 2023
Minimum Application Amount
Lumpsum: Rs. 500 and in multiples of Re. 1.
Systematic Investment Plan (SIP):
From Rs. 500 up to Rs. 1,000: minimum 60 instalments.
Above Rs. 1,000: minimum 6 instalments.
Systematic Investment Plan (SIP):
From Rs. 500 up to Rs. 1,000: minimum 60 instalments.
Above Rs. 1,000: minimum 6 instalments.
Category of Scheme
Balanced Advantage Fund
Minimum Additional Application Amount
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Who Should Invest?
This scheme can be suitable for investors who:
Want to add dynamic asset allocation to their portfolio.
Want diversification in their portfolio.
Are seeking professional fund management.
Want potential capital appreciation with mitigation of downside risk.
Have a long-term investment horizon.
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Benefits
Dynamic asset allocation
These funds dynamically allocate assets between equity and debt instruments, aiming to capture some part of the growth during bullish phases while mitigating downside risk during bearish phases.
Optimizing returns
Balanced advantage funds seek to generate consistent returns by leveraging opportunities across both equity and debt markets.
Risk management
By dynamically adjusting the allocation between equity and debt, these funds aim to reduce the impact of market volatility on investment returns.
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Fund Manager
Mr. Nimesh Chandan: Chief Investment Officer
Nimesh Chandan has over 22 years of experience in the Indian Capital Markets. He has spent 17 years in Fund Management- managing and advising domestic and international investors, retail as well as institutional. Prior to joining Bajaj Finserv Asset Management Ltd., he has worked with Canara Robeco Asset Management as Head of Investments, Equities (Domestic and Offshore). He has also worked with other asset management companies including Birla Sunlife Asset Management, SBI Asset Management and ICICI Prudential Asset Management.
Mr. Sorbh Gupta: Senior Fund Manager - Equity
Sorbh Gupta has over 15 years of experience in the Indian Capital Markets. In November 2022, he was appointed as Senior Fund Manager – Equity at Bajaj Finserv Asset Management Limited. Prior to joining Bajaj Finserv Asset Management Limited, he was associated with Quantum Asset Management Company Private Ltd. He has also worked with other financial companies such as Siddhesh Capital Markets Pvt. Ltd. and Pranav Securities Pvt. Ltd.
Mr. Siddharth Chaudhary: Senior Fund Manager - Fixed Income
Siddharth Chaudhary joined the Company in July 2022 as a Senior Fund Manager – Fixed Income. Prior to this, he was associated with Sundaram Asset Management Co. Ltd from April 2019 - July 2022 as Head Fixed Income – Institutional Business. From April 2017 – March 2019, he served as a Senior Fund Manager – Fixed Income, and from August 2010 – March 2017 as a Fund Manager – Fixed Income with Sundaram Asset Management Co. Ltd. During June 2006 – September 2010, he was working as Senior Manager, Treasury Dept in Indian Bank.
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Investment Style and Portfolio Strategy
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Our primary equity strategy is to build a portfolio of high-growth companies that may have achieved reasonable scale or size. Our focus is primarily on identifying companies with robust business models, sustainable competitive advantages, and superior return ratios compared to their industry peers.
Our investment process adheres to the INQUBE philosophy framework, considering key factors such as business fundamentals, management quality, and valuation.
To minimize concentration risk, our fund has the flexibility to invest in companies across various market capitalizations, adopting a sector-agnostic approach. Additionally, we may explore arbitrage opportunities within the Indian equities market.
In addition to equity investments, our scheme also allocates funds to debt securities and money market instruments. Investment strategy focuses on capturing term and credit spreads and maintaining a balance between safety, liquidity, and return aspects of various investments.
Our investment approach combines a top-down perspective for assessing interest rate trends and sector allocation with a bottom-up approach for selecting individual securities and instruments.
The fund management team will take an active view of interest rate movements by keeping a close watch on various parameters of the Indian economy, as well as developments in global markets. Investment views and decisions will be taken based on factors such as prevailing interest rate scenario, quality of the security/instrument, maturity profile, liquidity, growth prospects, and any other relevant factors in the opinion of the fund management team.
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Product Label and Riskometer
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This product is suitable for investors who are seeking*:
- To generate wealth creation over long term
- Dynamic asset allocation between equity and equity related instruments including derivatives, and fixed income instruments
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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Scheme Documents
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Balanced Advantage Fund - Overview
A Balanced Advantage Fund is a hybrid mutual fund investing in both debt and equity-related instruments. The allocation is decided as per the fund manager’s investment strategy and the scheme’s investment objective – there is no minimum allocation requirement.
The equity component of the fund can help generate potential capital appreciation, while the debt component can potentially mitigate risk and lend relative stability to the portfolio. The fund’s risk level can range from moderate to very high, depending on the typical equity-debt ratio.
The fund can also dynamically manage its allocation pattern, which means that it can increase or decrease the weightage of debt and equity in response to market trends.
Investors who seek potential capital appreciation with risk mitigation and have a long-term investment horizon can consider a balanced advantage fund investment. Those who want a balance of debt and equity and seek an actively managed portfolio can also look to invest in balanced advantage funds.
You can invest in Bajaj Finserv Balanced Advantage Fund either in lumpsum or through SIPs, depending on your financial goals and investment strategy.
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Frequently Asked Questions
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A balanced advantage fund, as per SEBI, is a hybrid fund that can dynamically manage its investments between debt and equity. This means that there are no regulatory limits on how much percentage of the balanced fund portfolio should be allocated to either asset class – the fund is free to determine their asset allocation pattern based on their strategy, investment objectives and market outlook.
One should invest in Bajaj Finserv Balanced Advantage Fund is because the fund’s investment approach is rooted in the first principles thinking that the equities market is influenced by both fundamental and behavioural factors. Fundamental factors include economic variables (GDP growth, interest rates, inflation, industrial production, current account deficit, etc.) and corporate aggregates (revenue outlook, earnings outlook, balance-sheet strength, etc.). Behavioural Factors on the other hand, encompass elements such as investor sentiment, herd behaviour, underlying biases, and other similar considerations. Additionally, our fund management team also simultaneously monitors behavioural elements prevalent in the market, utilizing an internally built composite indicator. This indicator is based on multiple factors which captures trends in different markets such as currency fluctuations, commodities trends, fixed income premiums of key securities, and prevailing liquidity momentum in the market.
No market-based investment is risk-free and there is no guaranteed safety. When the market is doing well or if you have a surplus of cash, a lumpsum investment could potentially yield good returns. On the other hand, SIPs can help build wealth over time through small but regular investments. They could also potentially help lower risk somewhat amid volatility though rupee cost averaging.
The Bajaj Finserv Balanced Advantage Fund can be suitable for investors who have a long-term investment horizon, are comfortable with some amount of risk, want a professional managed portfolio and seek potential capital appreciation with mitigation of risk through diversification and dynamic allocation between debt and equity.
The Net Asset Value or NAV of a scheme is updated daily as it is based on the market performance of the scheme’s underlying assets and the fund’s liabilities. The Bajaj Finserv Balanced Advantage Fund NAV on a given day can be seen on the scheme page.
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- Bajaj Finserv Asset Management Limited has been referred to as Bajaj Finserv AMC.
Copyright: All Rights reserved at Bajaj Finserv Asset Management Limited
