Bajaj Finserv files draft for new mutual fund scheme: Introducing Bajaj Finserv Multi Asset Allocation Fund

Bajaj Finserv, a renowned name in the financial sector, has filed with SEBI to introduce a new mutual fund scheme – the Bajaj Finserv Multi Asset Allocation Fund (BFMAAF). This scheme, designed as an open-ended investment avenue, seeks to offer investors a diversified portfolio across various asset classes, aiming to provide income generation from fixed-income instruments alongside capital appreciation through equity investments and other avenues.

Scheme Category and Type

Bajaj Finserv Multi Asset Allocation Fund falls under the category of Multi Asset Allocation Fund. It is structured as an open-ended scheme, allowing investments in equity, debt, and money market instruments, as well as Gold ETFs, Silver ETFs, exchange-traded commodity derivatives (ETCD), and units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

Investment Objective

The primary objective of the Bajaj Finserv Multi Asset Allocation Fund is to generate income from fixed-income instruments while also aiming for capital appreciation for investors. It will achieve this through investments in equity and equity-related securities, derivatives, Gold and Silver ETFs, exchange-traded commodity derivatives, and units of REITs & InvITs. However, it’s important to note that there’s no guaranteed assurance of achieving the investment objective.

Risk-o-meter

Liquidity

As an open-ended equity scheme, the Bajaj Finserv Multi Asset Allocation Fund offers liquidity by allowing investors to buy or sell units within 5 business days from the date of allotment. Additionally, redemption proceeds will be dispatched within three working days from the date of the redemption request, making it a convenient investment avenue for investors.

Benchmark

The benchmark for Bajaj Finserv Multi Asset Allocation Fund comprises 65% Nifty 50 TRI, 20% NIFTY Short Duration Debt Index, 10% Domestic Prices of Gold, and 5% Domestic Prices of Silver, reflecting the diversified nature of the fund’s investments across asset classes.

Loads

There’s no entry load applicable for Bajaj Finserv Multi Asset Allocation Fund. However, an exit load is applicable for units redeemed or switched out within 1 year from the date of allotment, with a progressive structure based on the percentage of units redeemed. No exit load is payable for units redeemed or switched out after 1 year from the date of allotment, except in cases where rebalancing portfolio timelines, as per SEBI regulations, are not complied with.

Minimum Application and Redemption Amount

During the New Fund Offer (NFO) period, the minimum application amount for lump sum investments is Rs 500, while for Systematic Investment Plans (SIPs), it’s also Rs 500 with a minimum of 6 installments. For ongoing offers, fresh subscriptions require a minimum of Rs 500, with additional applications starting from Rs 100. The minimum redemption or switch-out amount is Rs 500 or the investor’s account balance, whichever is less.

Fund Managers

Bajaj Finserv Multi Asset Allocation Fund will be managed by Mr. Nimesh Chandan and Mr. Sorbh Gupta for the equity portion, and Mr. Nimesh Chandan and Mr. Siddharth Chaudhary for the debt portion. Additionally, a dedicated overseas Fund Manager for investments in overseas securities and a commodity Fund Manager for investments in commodity securities will be onboarded, enhancing the expertise behind the fund’s management.

In conclusion, the Bajaj Finserv Multi Asset Allocation Fund (BFMAAF) will present an opportunity for investors to diversify their portfolios across various asset classes under the guidance of seasoned fund managers. With its flexible investment options, robust liquidity, and focus on income generation and capital appreciation, BFMAAF aims to cater to the investment needs of a wide range of investors in the dynamic market landscape.

Investors may keep an eye on the new fund offer (NFO) of this mutual fund scheme.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.