The Bajaj Finserv Balanced Advantage Fund NFO: Key Details

A look at the Bajaj Finserv Balanced Advantage Fund NFO, along with all the important details you need before applying to it

Bajaj Finserv Balanced Advantage

Bajaj Finserv Asset Management Limited has come up with a new open-ended dynamic asset allocation fund. Named Bajaj Finserv Balanced Advantage Fund, this new fund offer (NFO) is available from 24 November 2023 to 8 December 2023.

  • Balanced advantage funds have a high equity exposure of at least 65%

  • Bajaj Finserv has a consolidated market cap of around Rs 2.57 lakh crores

  • Motilal Oswal has the best-performing balanced advantage fund in one-year returns, while HDFC has the best five-year returns

Here is a look at some of the important information related to this NFO.

Bajaj Finserv Balanced Advantage Fund – Key Information

  • The opening NAV of the fund is Rs 10
  • The minimum application amount for lump sum investment is Rs 500 and in multiples of Rs 1

  • Systematic Investment Plan (SIP) contribution starts from Rs 500

  • In SIP, a minimum of 60 instalments must be paid if the SIP contribution is between Rs 500 and Rs 1,000. For contributions above Rs 1,000, the minimum instalment is six

  • The Bajaj Finserv Balanced Advantage Fund offers direct and regular plans, with growth and Income Distribution cum Capital Withdrawal (IDCW) options. IDCW further has payout, reinvestment and transfer sub-options

  • There is no entry load. Exit load is 1% if more than 8% of the allotted units are redeemed or switched within 6 months of allotment. There is no exit load thereafter

  • The scheme will follow the NIFTY 50 Hybrid Composite Debt 50:50 Index as the benchmark

  • Equity and equity-related instruments will have a minimum allocation of 65% and a maximum of 90%. Debt and money-market instruments can have a minimum and maximum allocation of 10% and 35% respectively

  • Mr Nimesh Chandan is the chief investment officer of the fund, while Mr Sorbh Gupta and Mr Siddharth Chaudhary are the senior fund managers for equity and fixed income, respectively

Investment Decision

A balanced advantage fund allocates assets between fixed and equity instruments through a fundamental and behavioural model. The scheme aims to achieve risk-adjusted returns in different market conditions, thereby achieving mid to long-term growth for the investors.

As an investor, you should note that balanced advantage fund schemes are also offered by several other AMCs as well. These funds rely on the fundamental analysis tools that help the scheme assess the fair market value in the market. The behavioural models study the market sentiments to identify bearish and bullish patterns. When considered together, the fund managers can spot instances of under-reaction and overreactions in the market. 

Also ReadMulti-Asset Allocation: Choosing Between Balanced Advantage Funds And Multi-Asset Allocation Funds

Conclusion

Balanced advantage funds invest heavily in equity and equity-related instruments, which puts them in the high-risk category. Therefore, you should consider the existing risk exposure in your portfolio before investing. 

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Also Read: Balanced Advantage Fund: Get The Best Of Equity And Debt In A Single Fund With Favourable Taxation

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