BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
A Systematic Investment Plan (SIP) lets you invest in a mutual fund scheme in small, regular amounts, like monthly contributions over a chosen period. While SIPs are often thought of as long-term tools, you may also choose a SIP for 1 year to save for a short-term goal or explore how mutual funds work.
The final value depends on the chosen fund’s performance.
Past performance may or may not be sustained in future.
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Our total Assets Under Management as on January 31, 2026.
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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.
Quality and liquidity
Build long-term wealth with Bajaj Finserv AMC’s equity mutual funds, designed to invest in a diversified portfolio of stocks Know More
Diversify your portfolio to reduce risk and get relatively stable growth potential. Invest in Bajaj Finserv AMC’s debt mutual funds. Know More
Benefit from a balanced investment strategy that combines growth potential with relative stability Know More
Grow your wealth over time with Bajaj Finserv AMC’s Index Funds. Get access to diversified, cost-effective investing. Know More
Invest in ETFs for intra-day trading flexibility, cost-efficiency and diversification. Know More
Debt or hybrid funds may exhibit relatively lower volatility. Scheme documents provide fund details and historical performance.
No. SIPs are taxed according to fund type and holding period.
SIPs are market-linked; FDs offer fixed returns. Choice depends on risk profile and expected outcomes. Returns on fixed deposits are fixed, however, returns on mutual funds are subject to market risks.
SIPs are subject to market fluctuations. Returns are not guaranteed.
Minimum contributions can start from Rs. 500/month. Requirements differ across funds.
Some funds allow contribution changes. Check scheme documents.
SIPs can be paused or stopped per fund rules. Charges may apply as per scheme documents.
No SIP guarantees specific returns. Past performance may not continue.
Some equity funds may have recorded high returns, but past performance is not indicative of future results.
A 1-year SIP can help you build the habit of saving regularly while exploring mutual fund investing without a long-term commitment. It can also be used to save for short-term goals such as a yearly trip, a gadget or an emergency fund. Returns are market-linked and may fluctuate.
A short-term SIP may suit individuals who want to try mutual fund investing before committing long-term, or those saving for goals within a year. It can also be a part of an overall portfolio for investors looking for short-term exposure. Those preferring debt-oriented SIPs may find it suitable if they want to limit the impact of market fluctuations.
Starting a 1-year SIP is straightforward. First, select a scheme that fits your goal and risk comfort. Decide the monthly amount you wish to invest, choose a 12-month tenure, complete your KYC online or offline, and start the SIP through your bank or AMC platform. This approach allows you to begin investing without a large lump sum.
Returns from a 1-year SIP vary depending on the fund type. Equity funds may fluctuate due to market ups and downs, hybrid funds offer a mix of growth and stability, while debt funds are relatively less volatile and may deliver modest returns. Past performance may or may not be sustained in future.
SIP returns are usually calculated using the XIRR method, which accounts for multiple monthly investments. SIP calculators can provide an indicative picture of potential returns, but they are not prediction tools.
When selecting a 1-year SIP, consider your risk comfort and understand how much short-term market fluctuation you can tolerate. Be clear about your financial goal for the year and check whether the SIP allows flexibility to change instalment amounts or schedules if needed. Focus on funds that are potentially suitable for your goal rather than chasing high returns.
How do 1-year SIP plans work?
To start a 1-year SIP, first pick a fund that aligns with your goal and risk comfort, and decide on the monthly contribution you wish to invest. Continue investing for 12 months, after which you may redeem the units. For example, investing Rs. 3,000 per month in a Flexi Cap Fund for 12 months means a total investment of Rs. 36,000. The final value may be slightly higher or lower depending on market movements. For illustrative purpose only.
Types of SIP Funds Suitable for 1-Year Horizon
For a 1-year SIP, debt funds may be potentially more stable and suitable for short-term investing. They focus on fixed-income instruments, which generally experience lower volatility compared to equity-heavy funds. Choosing a debt fund can help align your investment with short-term goals while potentially reducing the impact of market fluctuations.
Examples of SIP for 1 Year
| Fund Category | Monthly Investment | Total Invested | Assumed ROI (Annualised) | Final Amount* |
|---|---|---|---|---|
| Large Cap | Rs. 5,000 | Rs. 60,000 | 8% | ~Rs. 62,500 |
| Flexi Cap | Rs. 5,000 | Rs. 60,000 | 10% | ~Rs. 63,000 |
| Mid Cap | Rs. 5,000 | Rs. 60,000 | 12% | ~Rs. 64,000 |
| Small Cap | Rs. 5,000 | Rs. 60,000 | 13% | ~Rs. 65,000 |
*Note: This is for illustration purposes only. This example uses an assumed return rate. Mutual fund returns are not guaranteed and can fluctuate based on market trends. Past performance may or may not be sustained in future and is not a guarantee of any future returns.
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Bajaj Finserv Limited, an unregistered Core Investment Company (CIC) under RBI Regulations 2020, is a part of the renowned Bajaj Group.
One of India’s leading and most diversified financial services institutions, Bajaj Finserv Ltd provides simple financial solutions to crores of people every day through its group companies. Through continuous innovation, it strives to enrich the lives of communities across the length and breadth of the country and make financial security accessible to all.
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.
