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BAJAJ FINSERV BALANCED ADVANTAGE FUND

An Open Ended Dynamic Asset Allocation Fund

NFO DATE: 24th November - 8th December, 2023

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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
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.
Category of Scheme
Balanced Advantage Fund
Minimum Additional Application Amount
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Type of Scheme
An Open Ended Dynamic Asset Allocation Fund
Minimum Redemption Amount
Rs. 500 and in multiples of Re. 0.01/- or the account balance of the investor whichever is less
Plan
Bajaj Finserv Balanced Advantage Fund – Direct Plan
Bajaj Finserv Balanced Advantage Fund – Regular Plan
Load Structure/Lock-In Period
Entry load – Not applicable
Exit load – 1% of applicable NAV if excess of 8% of units allotted redeemed/switched out within 6 months from the date of allotment.
Nil, if redeemed/switched out after 6 months from the date of allotment.
The scheme will not levy exit load in case the timelines for rebalancing portfolio as stated in SEBI circular dated March 30, 2022 is not complied with.
Options/Sub-Option
• Growth option
• Income Distribution cum Capital Withdrawal (IDCW) option
IDCW option will offer the following sub-options:
• Payout of IDCW sub-option
• Reinvestment of IDCW sub-option
• Transfer of IDCW sub-option
Benchmark Index
NIFTY 50 Hybrid Composite debt 50:50 Index
Opening NAV
₹10 / Unit
Asset Allocation Pattern

Equity and equity-related instruments#:
Maximum: 90%, Minimum: 65% (Risk profile - Very high)

Debt and money market instruments and units of mutual fund schemes:
Maximum: 35%, Minimum: 10% (Risk profile - Low to moderate)

#The gross equity and equity related exposure would be normally maintained between 65%-100%, the net equity exposure can be brought down below 65% through various derivative strategies.

For detailed asset allocation, please refer to the Scheme Information Document

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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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Frequently Asked Questions

 
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Bajaj Finserv Balanced Advantage Fund is designed to strategically allocate assets by dynamically adjusting the balance between equity and fixed income. This method is based on a fundamental and behavioural model, which helps in avoiding emotional decision-making influenced by market dynamics. The primary goal of this fund is to aim for risk-adjusted returns throughout different market conditions, ultimately assisting investors in reaching their medium to long-term financial objectives.

One should invest in this fund 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.

Bajaj Finserv Balanced Advantage Fund broadly works on two factors:

1) Fundamental:
a. 1 Year forward earnings per share
b. Fair Value Multiple (Target PE Ratio) that is derived on the basis of growth premium, interest rate, and composition adjustments
2) Sentimental:
a. Currency
b. Commodity
c. Fixed Income
d. Equity

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NFO Documents
 
Presentation ImageName
Application Form ImageName
Scheme Information Document (SID) ImageName
Key Information Document (KIM) ImageName
Statement of Additional Information (SAI) ImageName
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Mutual fund investments are subject to market risks, read all scheme related documents carefully