BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
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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.
