Bajaj Finserv Balanced Advantage Fund

A balanced advantage fund, as per SEBI, is a hybrid fund that can dynamically manage its investments between debt and equity. This means that there are no regulatory limits on how much percentage of the balanced fund portfolio should be allocated to either asset class – the fund is free to determine their asset allocation pattern based on their strategy, investment objectives and market outlook.

One should invest in Bajaj Finserv Balanced Advantage Fund is because the fund’s investment approach is rooted in the first principles thinking that the equities market is influenced by both fundamental and behavioural factors. Fundamental factors include economic variables (GDP growth, interest rates, inflation, industrial production, current account deficit, etc.) and corporate aggregates (revenue outlook, earnings outlook, balance-sheet strength, etc.). Behavioural Factors on the other hand, encompass elements such as investor sentiment, herd behaviour, underlying biases, and other similar considerations. Additionally, our fund management team also simultaneously monitors behavioural elements prevalent in the market, utilizing an internally built composite indicator. This indicator is based on multiple factors which captures trends in different markets such as currency fluctuations, commodities trends, fixed income premiums of key securities, and prevailing liquidity momentum in the market.

No market-based investment is risk-free and there is no guaranteed safety. When the market is doing well or if you have a surplus of cash, a lumpsum investment could potentially yield good returns. On the other hand, SIPs can help build wealth over time through small but regular investments. They could also potentially help lower risk somewhat amid volatility though rupee cost averaging. To better understand how these regular investments can accumulate, an SIP calculator can assist you in projecting your future returns based on your investment amount and duration.

The Bajaj Finserv Balanced Advantage Fund can be suitable for investors who have a long-term investment horizon, are comfortable with some amount of risk, want a professional managed portfolio and seek potential capital appreciation with mitigation of risk through diversification and dynamic allocation between debt and equity.

The Net Asset Value or NAV of a scheme is updated daily as it is based on the market performance of the scheme’s underlying assets and the fund’s liabilities. The Bajaj Finserv Balanced Advantage Fund NAV on a given day can be seen on the scheme page.

BAF is suitable investment option for investors who want to build wealth over time and are comfortable taking some risk but also want to diversify their portfolio with some low-risk assets. The fund’s flexibility to choose its allocation pattern can help it capitalise on the potential upside of the equity market while lowering the downside through debt instruments and money market investments, among others.