Bajaj Finserv Asset Management Limited launches Bajaj Finserv Multi Asset Allocation Fund with Growth and Dividend Payout Strategy

Highlights:

· An open-ended scheme investing in equity and equity related instruments, debt & debt derivatives and money market instruments, Gold ETFs, Silver ETFs, exchange traded commodity derivatives and in units of REITs and InvITs

· Fund offers attractive current valuation to investors eyeing high dividend-yield companies, aiming to capitalize on compounding growth through dividend reinvestment, especially amid expected declining interest rates and anticipated growth in dividend value

· NFO opens on 13th May 2024, and closes on 27thMay 2024

· The Benchmark of the fund is 65% Nifty 50 TRI + 25% NIFTY Short Duration Debt Index + 10% Domestic Prices of Gold

India, May 13, 2024: Bajaj Finserv Asset Management Limited (Bajaj Finserv AMC) has announced the launch of Bajaj Finserv Multi Asset Allocation Fund, an open-ended scheme designed to provide investors with a diversified investment avenue. This fund offers exposure to various asset classes including equity with high dividend yield strategy, debt with dynamic duration management, commodities, and real estate investment trusts (REITs) or infrastructure investment trusts (InvITs).

Bajaj Finserv Multi Asset Allocation Fund invests across different asset classes with varying allocations. It maintains a diversified portfolio with an equity allocation ranging from 35% to 80%, employing a dividend yield strategy, multi-theme & multi-sector approach, and multi-cap orientation. The fund allocates 10% to 55% to fixed income instruments, employing dynamic duration management with macro and quantitative inputs, while emphasizing quality portfolio and a safety-first approach. Furthermore, it allocates 10% to 55% to commodities, providing exposure to gold ETFs, silver ETFs, and exchange-traded commodity derivatives, thereby offering upside potential and acting as a hedge against equity volatility. Also, the fund may allocate 0% to 10% to REITs/InvITs, focusing on investments for regular income, diversification, and an opportunistic approach.

Speaking on the launch of the product, Mr. Ganesh Mohan, CEO, Bajaj Finserv AMC, said “Bajaj Finserv Multi Asset Allocation Fund provides investors with a unique opportunity to access multiple asset classes through a single investment avenue. It is India’s first Multi Asset Fund to offer a dividend yield strategy that aims to provide a combination of stability and growth to investors. The fund’s asset allocation decisions are driven by a comprehensive evaluation of macroeconomic factors, valuation metrics, and investor behaviour. The investment philosophy, INQUBE, focuses on gaining an information edge, quantitative edge, and behavioural edge to outperform the market. Our aim is to offer a well-rounded portfolio that can navigate through various market scenarios and deliver consistent returns.”

Nimesh Chandan, CIO, Bajaj Finserv AMC highlighted the fund’s investment strategy, saying, “We believe in a disciplined approach to asset allocation, considering macroeconomic factors, valuation metrics, and investor behaviour. Our focus on dividend yield-based investing in the current scenario has the potential to minimise impact against volatility and maximise returns for the investors. Investors who are seeking reasonable returns, professional asset allocation, and an all-weather investment avenue with low volatility compared to pure equity funds can consider Bajaj Finserv Multi Asset Allocation Fund.”

The fund will be jointly managed by Nimesh Chandan and Sorbh Gupta on the Equity side, Nimesh Chandan and Siddharth Chaudhary on the Fixed Income side and Vinay Bafna on Commodities Investment.

The new fund offer will open for initial subscription on 13th May, and close on 27th May 2024. After that, it would be open for subscription on an on-going basis on or before 6th June 2024.

Entry load – not applicable

Exit load – For each purchase of units through Lumpsum / switch-in / Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP), exit load will be as follows:

· if units are redeemed / switched out within 1 year from the date of allotment:

o up to 30% of units allotted are redeemed/switched out – Nil

o any redemption / switch-out of units in excess of 30% of units allotted – 1% of applicable NAV

If units purchased or switched in from another scheme of the Fund are redeemed or switched out after 1 year from the date of allotment, no exit load is payable.

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