Bajaj Finserv Mutual Fund has recently introduced the Bajaj Finserv Balanced Advantage Fund (BAF), a dynamic asset allocation fund that opens for subscription on November 24 and closes on December 8. With a unique investment model combining behavioural sciences and financial insights, the fund aims to provide investors with a distinctive approach to navigating the ever-changing landscape of the market.
Key Features:
Investment Model: Bajaj Finserv BAF employs a distinctive investment model that goes beyond traditional quantitative methods. In addition to considering future earnings per share, growth expectations, and interest rates, the fund incorporates behavioural aspects into its decision-making process.
Behavioural Indicator: Unlike many funds, Bajaj Finserv's BAF model includes a behavioural indicator to navigate market volatility. This indicator helps optimize returns by fine-tuning entry and exit points, guiding equity allocation based on market valuation.
Market Fair Value Estimation: The fund's core investment strategy revolves around estimating the fair market value through a comprehensive analysis of future earnings, growth expectations, and interest rates. This ensures a well-informed approach to investment decisions.
Balanced Approach: CEO Ganesh Mohan emphasizes the importance of a balanced approach, combining both behavioural sciences and financial insights. This unique investment philosophy is designed to generate alpha and is particularly evident in the Bajaj Finserv Balanced Advantage Fund.
Management Team:
Equity Management: Nimesh Chandan and Sorbh Gupta jointly manage the equity side of the fund, employing a strategy based on fundamental analysis and behavioural cycles of the market.
Debt Management: Siddharth Chaudhary oversees the debt side, ensuring a well-rounded asset allocation strategy that considers both market fundamentals and behavioural analysis.
Expert Insights:
Nimesh Chandan, the Chief Investment Officer at Bajaj Finserv Mutual Fund, highlights the synergy between fundamental analysis and behavioural cycles. The combination of these tools helps the investment team assess the market's fair value and identify potential market overreactions or underreactions.
How will the Scheme allocate its assets? - Under normal circumstances, the asset allocation of the Scheme will be as follows:
Conclusion:
Bajaj Finserv Balanced Advantage Fund offers investors a fresh perspective on asset allocation, blending quantitative analysis with behavioural insights. With a focus on market fair value estimation and a balanced approach, the fund aims to provide investors with the tools needed to navigate market fluctuations and potentially enhance returns over the long term. Investors should carefully consider their risk tolerance and investment objectives before making any decisions.
Disclaimer:
Investments in mutual funds are subject to market risks, and past performance does not guarantee future results. Investors are advised to read the scheme-related documents carefully before making any investment decisions. The views and opinions expressed in this blog are for informational purposes only and should not be construed as financial advice. Please consult with a financial advisor before making any investment decisions.
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them Note: The above information has been sourced from the Scheme Information Document provided by Bajaj Finserv Asset Management. Read the entire document before investing, Disclaimer: Jaiprakash (ARN/Distributor - 70524; brand name Vasundhra Investment) is the distributor of the mutual fund. Please consult your investment advisor before investing
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.