Bajaj Finserv Asset Management has introduced the Bajaj Finserv Balanced Advantage Fund (BAF), an Open-Ended Dynamic Asset Allocation Fund designed for investors interested in both equity and equity-related instruments, including derivatives, as well as fixed-income instruments. The new fund offer is set to open for initial subscription on November 24 and close on December 8, with ongoing subscription availability starting on December 18.
The Bajaj Finserv BAF employs a distinctive investment model that combines Behavioral Sciences and Financial Insights. This approach allows investors to potentially navigate market volatility and optimize returns. Unlike traditional models that rely solely on quantitative factors, Bajaj Finserv AMC's investment team analyzes behavioral aspects, providing investors with potential long-term benefits.
The BAF model estimates fair market value based on future earnings per share, growth expectations, and interest rates, guiding the core investment strategy. By incorporating behavioral indicators, the fund aims to navigate market volatility, optimize returns, and fine-tune entry and exit points. The behavioral approach helps in adjusting equity allocation, increasing it during undervalued market phases and reducing it when the market is overvalued.
Ganesh Mohan, CEO of Bajaj Finserv Asset Management, expressed the company's fresh perspective as a new entrant and highlighted the impact of their unique investment philosophy, INQUBE, which combines Informative, Quantitative, and Behavioral insights to generate alpha. Nimesh Chandan, CIO of Bajaj Finserv Asset Management, emphasized the importance of recognizing market overreactions based on both fundamental and behavioral analyses, stating that their asset allocation strategy is designed to capitalize on market biases.
The fund will be jointly managed by Nimesh Chandan and Sorbh Gupta on the Equity side, with Siddharth Chaudhary overseeing the Debt side.
