High credit quality
The fund invests in long-term government securities, minimising credit risk.
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BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
The objective of the Scheme is to generate credit risk-free returns through investments in sovereign securities issued by the Central Government and/or State Government(s) and/or any security unconditionally guaranteed by the Government of India, and/or reverse repos in such securities as per applicable RBI Regulations and Guidelines. The Scheme may also be investing in Reverse repo, Triparty repo on Government securities or treasury bills and/or other similar instruments as may be notified from time to time.
However, there is no assurance that the investment objective of the Scheme will be achieved.
Nimesh Chandan has over 24 years of experience in the Indian Capital Markets. He has spent 18 years in Fund Management- managing and advising domestic and international investors, retail as well as institutional. Prior to joining Bajaj Finserv Asset Management Ltd., he has worked with Canara Robeco Asset Management as Head of Investments, Equities (Domestic and Offshore). He has also worked with other asset management companies including Birla Sunlife Asset Management, SBI Asset Management and ICICI Prudential Asset Management.
Siddharth Chaudhary joined the Company in July 2022 as a Senior Fund Manager – Fixed Income. Prior to this, he was associated with Sundaram Asset Management Co. Ltd from April 2019 - July 2022 as Head Fixed Income – Institutional Business. From April 2017 – March 2019, he served as a Head – Fixed Income, and from August 2010 – March 2017 as a Fund Manager – Fixed Income with Sundaram Asset Management Co. Ltd. During June 2006 – September 2010, he was working as Senior Manager, Treasury Dept in Indian Bank.
| Instruments | Indicative allocations (% of total assets) | |
|---|---|---|
| Minimum | Maximum | |
| Government of India Securities/ State Government Securities, Treasury Bills and Cash Management Bills across maturity | 80% | 100% |
| Other Debt Securities and Money Market Instruments* | 0% | 20% |
*Money market instruments will include commercial papers, commercial bills, Triparty REPO, Reverse Repo and equivalent and any other like instruments as specified by SEBI and Reserve Bank of India from time to time.
An open ended debt scheme investing in government securities across maturity with relatively high interest rate risk and relatively low credit risk
Nil
to view Total Expense Ratio
| Interest rate Risk |
Credit Risk | ||
|---|---|---|---|
| Relatively Low (Class A) |
Moderate (Class B) |
Relatively High (Class C) |
|
| Relatively Low (Class I) |
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| Moderate (Class II) |
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| Relatively High (Class III) |
A-III | ||
A scheme with relatively high interest rate risk and relatively low credit risk.
The PRC matrix identifies the highest amount of potential risk that a debt mutual fund can assume.
This regulation was implemented by SEBI on December 1, 2021, requiring fund houses to categorize schemes under a potential risk class (PRC) matrix.
Bajaj Finserv Gilt Fund
An open ended debt scheme investing in government securities across maturity with relatively high interest rate risk and relatively low credit risk
This product is suitable for investors who are seeking*:
A gilt fund is a type of mutual fund that invests chiefly in government securities. These are bonds and debt instruments issued by the government, so they carry virtually no risk of default. Because of this, gilt funds are considered relatively stable investment avenues and carry lower risk than funds investing in corporate bonds. However, their return potential is affected by changes in interest rates. When interest rates fall, the prices of existing bonds rise, leading to better returns for investors. Conversely, when interest rates rise, the market value of existing bonds falls.
Such funds are suitable for investors who want a lower risk avenue, especially during uncertain times in the financial markets. Gilt funds can also help investors earn better returns over the long term if interest rates decrease.
Gilt mutual funds are debt funds that invest primarily in government securities. G-secs typically hold minimal credit risk due to the backing of the sovereign entity. Gilt funds are mandated to allocate a minimum of 80% of their total assets to government securities. These funds aim to offer relatively stable return potential and the potential for steady income.
Gilt funds invest chiefly in government securities, nearly eliminating credit risk as the government is considered a very reliable borrower. Moreover, such benefits can offer capital appreciation potential when interest rates decline, increasing the value of existing fixed-income securities in the secondary market.
The Bajaj Finserv Gilt Fund can be suitable for moderately conservative investors who are seeking reasonable return potential in the medium term, with less volatility than equity funds. It is also suitable for those who want to mitigate credit risk by investing chiefly in government securities. Additionally, it can be a suitable way for investors to diversify their portfolios to add relative stability.
You can invest online via the Bajaj Finserv AMC investor portal, or through digital aggregators and portals. To invest offline, you can submit the scheme application form at the AMC’s official point of acceptance. You can invest independently through the direct plan or through a registered mutual fund distributor through the regular plan.
NAV is updated every business day. For the most accurate and recent value, check the top left of this scheme page.
AUM figures are updated periodically. Please refer to the most recent fund factsheet for latest information.
The fund’s risk classification is disclosed under SEBI’s Riskometer framework. For the current status, refer to the latest fund factsheet.
Holdings vary with market conditions. Please see the latest monthly portfolio disclosure on the AMC’s official site.
The fund primarily invests in government securities. For detailed allocation, view the latest factsheet or scheme information document.
Returns depend on market movements and interest rate cycles. Check the latest fund factsheet for updated performance figures.
There is no mandatory lock-in but exit loads (if any) may apply. Please check the scheme information document for full details.
Expense ratios vary by plan and are subject to revision. Refer to the latest fund factsheet or the AMC website for the current rates.
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Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
