Short-term avenue
The fund can be a suitable place to park funds for short-term goals
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BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
Short-term goals
Liquidity and flexibility
The investment objective of the Scheme is to generate optimal returns for its investors through a portfolio constituted of debt and money market securities. The Macaulay duration of the portfolio is managed between 6 months and 12 months, resulting in a low duration investment with relatively high interest rate risk and moderate credit risk. The Scheme seeks to offer a short-term savings avenue with low risk while balancing yield and liquidity.
However, there is no assurance that the investment objective of the Scheme will be achieved.
Short-term avenue
The fund can be a suitable place to park funds for short-term goals
Read MoreMaturity profile
Short maturity profile makes the fund less sensitive to interest rate changes compared to other debt funds.
Read MoreLiquidity and flexibility
Short maturity profile enables efficient liquidity management for investors.
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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.
| Instruments | Indicative allocations (% of total assets) | |
|---|---|---|
| Minimum | Maximum | |
| Debt and Money Market Instruments* (including Triparty Repos on Government Securities or treasury bill & Repo, units of mutual funds) such that the Macaulay duration of the portfolio is between 6 months and 12 months. | 0% | 100% |
*Money market instruments will include commercial papers, commercial bills, Triparty REPO, Reverse Repo and equivalent and any other like instruments as specified by SEBI and Reserve Bank of India from time to time.
Bajaj Finserv Low Duration Fund
An open ended low duration debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 6 months to 12 months (please refer to page no. 34 of the SID)# with relatively high interest rate risk and moderate credit risk.
# Please refer to the page number of the Scheme Information Document on which the concept of Macaulay Duration has been explained.
During ongoing offer
Nil
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.
The Bajaj Finserv Low Duration Fund is an open-ended debt scheme investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 6 and 12 months. Investors who typically allocate to liquid or money market funds may consider investing incrementally in this fund to potentially benefit from market volatility or rate cut cycles, without significantly changing the duration of their portfolios.
The fund may also be suitable for investors seeking the potential to benefit from any downward movement in rates without taking exposure to long-duration instruments. The fund may also serve as an avenue to park surplus funds or for short-term goals.
The Bajaj Finserv Low Duration Fund will invest across money market instruments, corporate bonds, and non-convertible debentures. It will allow selective exposure to securities beyond one-year maturity (while maintaining the required Macaulay duration of 6 to 12 months) to enhance return potential. Fund managers may actively manage the portfolio by adjusting maturity, credit exposure, and instrument selection based on interest rate conditions and liquidity considerations. Low duration fund returns are influenced by factors such as interest rate movements, credit quality of holdings, and prevailing market conditions, and may vary over time.
Those investing in the Bajaj Finserv Low Duration Fund can choose between two plans:
Regular plan
A regular plan involves investing through a mutual fund distributor who supports investors with scheme selection, application processes, and transactions. The expense ratio for this plan is typically higher, as it includes distributor commissions paid by the asset management company. However, investors receive guidance that may help them align their investments with their financial goals and risk profile.
Direct plan
A direct plan is designed for investors who are comfortable making and managing their own investment decisions. These plans generally have a lower expense ratio, which may contribute to higher net returns over the long term. However, investors need to research market conditions, make scheme selections, and monitor their investments independently.
You can invest in the Bajaj Finserv Low Duration Fund in the following ways:
Online: You can visit Bajaj Finserv AMC’s official website and navigate to the transaction portal from the ‘Invest Now’ button on this page or the Login/Register tab on the home page. There, you can invest through a seamless and secure digital process. You can also invest through an aggregator platform, on MF Utility, or through a Registrar and Transfer Agent.
Offline: You can fill out the application form and submit it at the nearest official point of acceptance (OPAT) of Bajaj Finserv AMC. If you’re investing through a distributor, they will typically help you with filling out and submitting the application form.
Capital gains and income from the Bajaj Finserv Low Duration Fund will be taxable as follows:
The suitability of this fund depends on the investor’s financial goals, risk appetite, investment horizon, liquidity needs, and overall portfolio allocation. The fund may be suitable for investors seeking a relatively stable investment avenue for short-term goals.
A low duration fund is a debt mutual fund that invests in debt and money market instruments while maintaining a portfolio Macaulay duration of 6-12 months. Such a fund seeks to manage interest rate risk while generating accrual-based returns over a short time horizon.
The portfolio Macaulay duration of a low duration mutual fund is 6 to 12 months. It may be suitable for short-term goals.
The scheme’s inception date is February 20, 2026.
While they seek to maintain relative stability and manage interest rate risk, low duration debt funds are not risk-free – as with all market-linked instruments, returns are not guaranteed and low duration fund performance depends on market conditions.
The minimum investment amount may vary from one fund house to another. For the Bajaj Finserv Low Duration Fund, the minimum SIP amount is Rs. 1,000 (with minimum six instalments). It is recommended to check the scheme documents for up-to-date information and terms and conditions.
A low duration fund is a scheme that invests in debt and money market securities while maintaining a Macaulay duration of 6 to 12 months for its portfolio. It falls under the category of debt mutual funds.
The low duration fund taxation structure is the same as that of all debt funds. Capital gains from low duration funds are taxed as per an investor’s income tax slab. Income distributed to investors who opt for the IDCW option is also taxed as per applicable slab rates.
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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.
