Bajaj Finserv Balanced Advantage Fund NFO Review, Offer Details

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Article Content

Objective
Bajaj Finserv Balanced Advantage Fund NFO Details
Who Can Invest?
Bajaj Finserv Balanced Advantage Fund Asset Allocation
Concluding Remarks

Bajaj Finserv Mutual Fund has launched a new NFO in the Dynamic Asset Allocation Category named Bajaj Finserv Balanced Advantage Fund

Bajaj Finserv Mutual Fund has launched a new dynamic asset allocation fund, Bajaj Finserv Balanced Advantage Fund, that dynamically manages assets between equities and debt instruments. The Bajaj Finserv Balanced Advantage Fund NFO opening and closing dates is from 24th November 2023 to 8th December 2023.

Objective

The Bajaj Finserv Balanced Advantage Fund’s investment objective is to capitalize on the potential upside of equities while attempting to limit the downside. The fund aims to do this by dynamically managing the portfolio through investment in equity & equity-related instruments and active use of debt, derivatives and money market instruments.

Bajaj Finserv Balanced Advantage Fund NFO Details

Fund Name	Bajaj Finserv Balanced Advantage Fund
NFO Opening Date	24th November 2023
NFO Closing Date	8th December 2023
Type of Fund	Open-ended equity scheme
Fund Manager	Mr. Nimesh Chandan and Mr. Sorbh Gupta (Equity Portion) Mr. Siddharth Chaudhary (Debt Portion)
Minimum Investment Amount	INR 500
Minimum Additional Purchase Amount	INR 1
Minimum SIP	INR 500 (60 Installments)
Exit Load	0-1%
Suitability	Very High
Benchmark	Nifty 50 Hybrid Composite Debt 50:50 Index TRI
Plans	Bajaj Finserv Balanced Advantage Fund – Direct Plan Bajaj Finserv Balanced Advantage Fund – Regular Plan

Note:

All additional investment amounts should be multiple of INR 1/-

Minimum Redemption: INR. 500 and in multiples of Re. 0.01/- or the account balance of the investor whichever
is less

Exit Load:

If 8% units are redeemed within 6 months from the date of allotment then nill, if more than 8% of units were redeemed then 1%.

If redeemed after 6 months from the date of allotment: NIL

Who Can Invest?

Bajaj Finserv Balanced Advantage Fund is an open, dynamic asset allocation mutual fund that invests in both equity and debt instruments. The fund employs a fundamental strategy to evaluate equity market valuations at any given time in order to determine its desired net equity position. Therefore, the fund seeks to provide investors with optimal participation in the equity market. The net equity and arbitrage position exposure assists the investor in achieving equity capital gains taxation at all times.

The debt exposure aims to provide the fund with an income strategy. The fund strives to deliver a risk-adjusted return while minimizing volatility through active management of its net equity position.

Since the portfolio is investing in equities, a high-risk tolerance level is required for investing in the scheme. Investors who aim to get exposure to equity and debt at the same time can consider Mirae Asset Balanced Advantage Fund.

Popular Balanced Advantage Funds

Bajaj Finserv Balanced Advantage Fund Asset Allocation

Types of Instruments	Indicative Allocation Minimum	Indicative Allocation Maximum	Risk Profile
Equity and equity-related instruments	65%	90%	Very High
Debt securities (including securitized debt), money market instruments (including Triparty REPO, Reverse Repo and equivalent)	10%	35%	Low to Moderate

Concluding Remarks

Bajaj Finace Balanced Advantage Fund is an open-ended dynamic asset allocation fund that aims to invest dynamically across both equity and debt schemes. Investing across different asset classes will offer a different risk-return profile. And also offers relatively low correlation to each other in comparison to other investments within the same asset class. The fund manager will dynamically determine asset allocation between debt and equity depending on prevailing economic market and market conditions. The equity-debt mix at any point in time will be a function of various factors like equity valuations, interest rates, asset classes and risk management etc.

Also, the Scheme may periodically employ an internal proprietary algorithm to analyze the market and identify asset allocation opportunities.

Bajaj Finserv Balanced Advantage Fund is aimed at investors who wish to get exposure to both equity and debt schemes. Furthermore, it is considered to be an equity scheme, and a medium to long-term investment horizon is advisable. Moreover, since the Mirae Asset Balanced Advantage Fund does not guarantee returns, it is wise to monitor the investments closely.