Low risk
Investments in short-term and high-quality securities mitigate interest rate and credit risk.
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BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
The investment objective of scheme is to seek to provide current income, commensurate with low risk while providing a high level of liquidity through a portfolio of tri-party repo on government securities or T-bills/repo amd reverse repo. The scheme will provide returns that before expenses, closely correspond to the returns of Nifty 1D Rate index, subject to tracking error.
However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
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.
Tri-Party Repos in Government Securities or Treasury Bills (TREPS): 95% – 100%. Risk Profile – Low
Units of Overnight/ Liquid schemes#, Money Market Instruments (with maturity not exceeding 91 days)*, cash & cash equivalent: 0% – 5%. Risk Profile – Low to Moderate
*Money market instruments will include Government securities, Treasury Bills, Cash Management Bills, CBLO, Repo, Reverse Repo, TREPS, Certificate of Deposits (CDs), Commercial Paper (CPs) and any other securities/instruments as may be permitted by SEBI and RBI from time to time. The Scheme shall make investments in/purchase money market securities with maturity of up to 91 days only.
Investment in repo in corporate debt securities upto 5% of the net asset with maturity of upto 91 days.
#The scheme may invest upto 5% of the net asset in Liquid & Overnight Fund of Bajaj Finserv Mutual Fund and other Mutual Fund without charging any fees, in accordance with the applicable extant SEBI (Mutual Funds) Regulations, 1996 as amended from time to time.
For more details, kindly refer Scheme Information Document.
Bajaj Finserv Nifty 1D Rate Liquid ETF – Growth – An open ended Exchange Traded Fund tracking Nifty 1D Rate Index with Relatively Low Interest Rate Risk and Relatively Low Credit Risk
On an On-going Basis:
On Exchange: Investors can buy/sell units of the scheme in round lot of 1 unit and in multiples thereof.
Directly with the Mutual Fund: Any order placed for redemption or subscription directly with the AMC must be of greater than Rs. 25 Cr. However, the aforementioned threshold of INR 25 crore shall not apply to investors falling under the following categories (until such time as may be specified by SEBI/AMFI):
• Schemes managed by Employee Provident Fund Organisation, India;
• Recognised Provident Funds, approved Gratuity funds and approved superannuation funds under Income Tax Act, 1961.
not applicable
to view Total Expense Ratio
Nifty 1D Rate Index
The broad principles on which the AMC would determine the compensation would include the trading volume, generating liquidity in the market, bid-ask spread in units of ETFs, expense ratio of the ETFs and such other information as may be required to formalize performance based incentive structure.
Maximum Total expenses ratio (TER) permissible under Regulation 52 (6) (c) – Up to 1.00 and additional expenses for gross new inflows from specified cities – Up to 0.30
| Interest rate Risk |
Credit Risk | ||
|---|---|---|---|
| Relatively Low (Class A) |
Moderate (Class B) |
Relatively High (Class C) |
|
| Relatively Low (Class I) |
A-I | ||
| Moderate (Class II) |
|||
| Relatively High (Class III) |
|||
A scheme with relatively low interest rate risk and relatively low 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 Nifty 1D Rate Liquid ETF is an exchange traded fund that invests in short-term debt instruments. These include Tri-party repos in government securities or treasury bills, units of overnight and liquid schemes, money market instruments (maturity not exceeding 91 days) and cash and cash equivalents. It aims to provide returns that mirror the Nifty 1D Rate Index, subject to tracking error.
Offering high liquidity, this ETF can be suitable for those looking for a short-term investment solution that offers better return potential than savings accounts, albeit with some market risk. Investors need a demat account to invest.
ETFs, or Exchange-Traded Funds, are diversified investment avenues that trade on stock exchanges like individual stocks. Similar to mutual funds, ETF investments offer diversification by holding a variety of stocks, bonds, or commodities.
The Nifty 1D Rate Liquid ETF invests in short-term debt securities such as TREPS, overnight securities and other fixed-income instruments with high liquidity and low risk.
This ETF can be suitable for investors looking for a low-risk, highly liquid option to park surplus cash for short durations. It offers the potential for better returns than savings account, albeit with some risk.
While the risk level is low, no mutual fund or ETF is risk free and returns may fluctuate depending on market conditions.
Investors need a demat account to invest in this fund.
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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.
