Credit quality
We endeavor to invest in high-credit-rated AAA bonds, ensuring your investment’s credit quality.
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BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
To generate income by predominantly investing in debt & money market securities issued by banks, public sector undertaking (PSUs), public financial institutions (PFI), municipal bonds and reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and/or any security unconditionally guaranteed by the Govt. of India.
Disclaimer: There is no assurance or guarantee that the investment objective of the scheme will be achieved.
Nimesh Chandan has over 24 years of experience in the Indian Capital Markets. He has spent 18 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.
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 Head – 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.
Instrument: Debt and money market instruments of banks, public sector undertakings, public financial institutions and municipal bonds
Indicative allocation: Maximum 100%, minimum 80%.
Risk Profile: Low to moderate
Instrument: Debt and money market securities (including government securities) issued by entities other than banks, public sector undertakings, public financial institutions and municipal bonds.
Indicative allocation: Maximum 20%, minimum 0%
Public sector entities/undertakings to include those entities:
•In which the Government of India/a State Government has at least 51% shareholding (directly or indirectly).
•Notified/qualifying as public sector entities, in accordance with norms/notified by Government of India/a State Government.
•The debt of which is guaranteed by Government of India/a State Government.
An open ended debt scheme predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds with relatively high interest rate risk and moderate credit risk.
Additional Purchase (Incl. Switch-in): Minimum of Rs. 1,000/- and in multiples of Re.1/- thereafter.
Systematic Investment Plan (SIP):
The applicability of the minimum amount of installment mentioned is at the
time of registration only
For more information, please refer SAI
Not applicable
Nil
to view Total Expense Ratio
| Interest rate Risk |
Credit Risk | ||
|---|---|---|---|
| Relatively Low (Class A) |
Moderate (Class B) |
Relatively High (Class C) |
|
| Relatively Low (Class I) |
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| Moderate (Class II) |
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| Relatively High (Class III) |
B-III | ||
A scheme with relatively high interest rate risk and moderate credit risk.
The PRC matrix identifies the highest amount of potential risk that a debt mutual fund can assume.
This regulation was implemented by SEBI on December 1, 2021, requiring fund houses to categorize schemes under a potential risk class (PRC) matrix.
Banking and PSU Funds are debt mutual funds that invest primarily in debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds.
The objective of a Banking and PSU Fund is to offer the potential for relatively stable returns from fixed income instruments. Banking and PSU Funds may be suitable for investors with a moderate risk appetite looking for a relatively stable debt option with the potential to deliver better returns than very short-term categories. They can be used for medium-term financial goals, portfolio diversification, or as part of a fixed-income allocation.
Banking and PSU mutual funds invest predominantly in debt instruments of banks, public sector undertakings and public financial institutions. They are relatively stable and have the potential to offer modest returns in the short-to-medium term.
All mutual fund investments are subject to market risk. Banking and PSU funds offer relative stability of capital but do entail low-to-moderate risk. They have low credit risk because they invest in high quality securities, including government-backed ones. However, because of the relatively long maturity of the underlying securities, they are exposed to interest rate risk – the risk that the value of a security in the secondary market may fall because of a rise in interest rates in the economy.
Yes, banking & PSU debt schemes are relatively stable as they invest in debt securities of banks and PSUs that are government-backed or owned.
These funds do not have a lock-in period. They are suitable for investors with a short to medium term investment horizon.
You can either visit the AMC website or take assistance from a broker or intermediary platform and invest in this fund through SIP or lumpsum.
NAVs are updated on every business day. Please refer to the AMC’s website or your investment platform for the latest value.
AUM changes periodically. Visit the official fund page or view the latest factsheet for up-to-date data.
The fund’s risk classification is disclosed as per SEBI’s Riskometer. Please check the latest fund disclosures for current information.
Holdings vary depending on market conditions. You can find the latest monthly portfolio on the AMC website.
The fund primarily invests in Debt and money market instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds and Debt and money market securities (including government securities) issued by entities other than banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds. For details, refer to the latest scheme factsheet.
Returns fluctuate based on market dynamics and interest rates. Check the latest fund performance data on the AMC site or financial portals or the latest factsheet.
There is no mandatory lock-in. However, exit load (if any) may apply. Please refer to the Scheme Information Document for full terms.
The expense ratio may vary between Direct and Regular plans. For current figures, view the latest fund factsheet or AMC website.
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Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
