Bajaj Finserv to launch India’s first multi-asset fund with dividend yield strategy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Finserv Asset Management Company (Bajaj Finserv AMC) has announced the launch of Bajaj Finserv Multi Asset Allocation Fund. This will be India’s first multi-asset fund with dividend yield strategy, the mutual fund house said.

The new fund offer (NFO) of the scheme will open on May 13 and close on May 27. After that, it will be open for subscription on an ongoing basis on or before June 6, 2024.

The benchmark of the fund will be 65% Nifty 50 TRI plus 25% NIFTY Short Duration Debt Index plus 10% domestic prices of gold.

Bajaj Finserv Multi Asset Allocation Fund will invest across different asset classes with varying allocations.

It will maintain a diversified portfolio with an equity allocation ranging from 35-80%, employing a dividend yield strategy, multi-theme and multi-sector approach, and multi-cap orientation.

The fund will allocate 10-55% to fixed income instruments.

Further, it will allocate 10-55% to commodities, providing exposure to gold ETFs, silver ETFs, and exchange-traded commodity derivatives, according to the mutual fund house statement.

Also, the fund may allocate 0-10% to REITs/InvITs, focusing on investments for regular income, diversification, and an opportunistic approach.

While entry load will not be applicable, an exit load will be there for each purchase of units through lumpsum/switch-in /systematic investment plan (SIP) and systematic transfer plan (STP).

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 exit load will be as follows:

If units are redeemed/switched out within one year from the date of allotment:

• Up to 30% of units allotted are redeemed/switched out – Nil.
• Any redemption/switch-out of units in excess of 30% of units allotted — 1% of applicable NAV.
• If units are purchased or switched in from another scheme of the fund are redeemed or switched out after one year from the date of allotment, no exit load is payable.

Speaking on the launch of the product, Ganesh Mohan, CEO, Bajaj Finserv AMC, said. “Bajaj Finserv Multi Asset Allocation Fund provides investors with an opportunity to access multiple asset classes through a single investment avenue. The fund’s asset allocation decisions are driven by a comprehensive evaluation of macroeconomic factors, valuation metrics, and investor behaviour. 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, “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.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow