NFO Alert: All you need to know about Bajaj Finserv Balanced Advantage Fund

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Bajaj Finserv Asset Management, 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." The scheme aims to harness the potential gains from equities while actively mitigating potential losses.

This is achieved through dynamic portfolio management involving investments in equities and equity-related instruments, coupled with strategic use of debt, money market instruments, and derivatives to optimise overall performance. Nimesh Chandan, CIO, Bajaj Finserv Asset Management, added, "The crowd is not always wrong. As a result, selling whenever the 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 the 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.