The Business Bytes
TBB BUREAU
MUMBAI, NOV 21, 2023
Newly-formed Bajaj Finserv Asset Management has announced the launch of a Balanced Advantage Fund (BAF) — schemes that dynamically invest in both equity and debt.
The new fund offer (NFO) for the scheme opens on November 24 and closes on December 8.
Speaking on the launch of the product, Bajaj Finserv Asset Management CEO Ganesh Mohan said, “Given that we are a new entrant, we have the opportunity of looking at things afresh. Our BAF is yet another example of that approach. Here, both Behavioural Sciences and Financial insights are ‘balanced’, to help us make our investment decisions. Our unique investment philosophy (INQUBE), seeks to combine the Informative, Quantitative and Behavioural edge to generate alpha. While this forms the plank for almost all our products, it is in our Balanced Advantage Fund that one will really be able to see a more pronounced impact of our behavioural tools.I’m certain you will see many more behavioural sciences-based ideas and products being talked about in the industry in the near future.”
Bajaj Finserv Asset Management CIO Nimesh Chandan said, “The crowd is not always wrong. As a result, selling whenever equity market rises and purchasing every time the market falls may not be the best asset allocation approach. It is critical to recognize where the crowd has overreacted in greed or fear and capitalize on that response. We have designed an asset allocation strategy based on the study of fundamental as well as the behavioural cycle of the market. Fundamental analysis tools provide us with an assessment of the market’s fair value, while behavioural analysis techniques provide us with the change in market bias between bullish and bearish. When these indications are combined, they show whether the market has overreacted or underreacted in either way.”
The fund will be jointly managed by Nimesh Chandan and Sorbh Gupta on the Equity side and Siddharth Chaudhary on the Debt side.
