Bajaj Finserv balanced advantage fund NFO leaflet

1. FINANCIAL
INSIGHTS
BEHAVIOURAL
SCIENCE
+
The world believes that markets are governed by financial insights. But that’s half the picture. We know that
markets are not only governed by perfect sciences; they’re also powered by human psychology.
To truly succeed, you need to make decisions that rise above biases and emotions. Which is why,
Bajaj Finserv Balanced Advantage Fund combines the benefits of behavioural sciences and financial wisdom.
Asset allocation approach
Market intrinsic value based on
fundamental factors
Behavioural adjustment
to market valuation
Option of daily rebalancing basis
market conditions
Asset bucketing**
• Gross Equity* – (65-90)%
• Net Equity - (25-90)%
• Debt – (10-35)%
An Open Ended Dynamic Asset Allocation Fund
Presenting Bajaj Finserv Balanced Advantage Fund
INDIA’S FIRST
BALANCED ADVANTAGE FUND
WHERE BEHAVIOURAL SCIENCE
MEETS FINANCIAL INSIGHTS.
**Indicative allocation and this can change based on market conditions and investment opportunity available
*Includes Net Equity & Arbitrage
NFO PERIOD 24th
Nov - 8th
Dec, 2023

2. How market volatility impacts our emotions
Emotional biases that impact our investment decisions
People feel optimistic and positive when the market peaks and anxious when it falls,
which reflects in their investment behaviour.
Source: Bloomberg; Data as on Sep 30, 2023. Past performance may or may not sustain in future
Nifty 50
Overestimating
one’s abilities
and knowledge.
Overconfidence
bias
Focusing on past
performance while
ignoring other
factors.
Trend-chasing
bias
Seeking information
that supports
beliefs and ignores
conflicting data.
Confirmation
bias
Making decisions
based on readily
available
information.
Availability
bias
The tendency to avoid
losses over making
equivalent gains.
Loss aversion
bias
Following the
crowd without
independent analysis.
Herd mentality
bias
Regret aversion
bias
Clinging on to loss
making choices to
avoid regret.
GFC* - Global financial crisis | QE** - Quantitative easing
`-
5,000
10,000
15,000
20,000
25,000
Euphoria
Liquidity Glut
Panic
QE**1, Institutional
revival,
Green shoots
GFC*,
Retail investors exit
Nervous
EU Crisis
Panic
Covid Crisis
Curious
Demonetisation
QE**2
Nervous
Russia-Ukraine War
Confused
Taper Tantrum
Jan-07
Sep-07
May-08
Jan-09
Sep-09
May-10
Jan-11
Sep-11
May-12
Jan-13
Sep-13
May-14
Jan-15
Sep-15
May-16
Jan-17
Sep-17
May-18
Jan-19
Sep-19
May-20
Jan-21
Sep-21
May-22
Jan-23
Sep-23

3. About Bajaj Finserv Balanced Advantage Fund
Model overview
Equity allocation of the model across various market conditions
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
5000
10000
15000
20000
25000
30000
35000
Oct-23
May-23
Dec-22
Jul-22
Feb-22
Sep-21
Apr-21
Nov-20
Jun-20
Jan-20
Aug-19
Mar-18
Oct-18
May-18
Dec-17
Jul-17
Feb-17
Sep-16
Apr-16
Nov-15
Jun-15
Jan-15
Aug-14
Mar-14
Oct-13
May-13
Dec-12
Jul-12
Feb-12
Sep-11
Apr-11
Nov-10
Jun-10
Jan-10
Aug-09
Mar-09
Oct-08
May-08
Dec-07
Jul-07
Feb-07
Sep-06
Apr-06
Nifty 50 TRI Average equity allocation
Note: Model Equity level shown above is for illustration purpose only and should not be used for development or implementation of any investment strategy. It
should not be construed as an investment advice to any party. The net equity allocation is based on internal proprietary model which is derived from retrospective
analysis. Actual allocation and investing experience may vary from the theoretical stance. Fund manager holds the final prerogative to ascertain whether any
security/asset provides investment benefit to the fund and is in keeping with the larger investment goal, strategy and the investment & operational mandate of the
fund. As such the fund manager may or may not choose to invest in a particular holding. The portfolio construction is the purview of the Fund Manager and
allocation may change from time to time. Past performances may or may not sustain in future.
The model intends to remove investment-related biases in equity allocation.
The model combines two broad indicators that identify and confirm market entry
and exit points:
1. Fundamental elements:
Estimating market’s intrinsic worth through
forward EPS, growth premiums and interest
rate considerations, provides a fundamental
foundation for assessing whether the market
is overvalued or undervalued relative to
earnings potential.
2. Behavioural factor:
Sentiment analysis using price indicators
from commodities, currency movements,
yield spreads and yield curve shape, are
often leading indicators of economic and
market shifts. They can signal early warnings
of the market cycles, both bullish and bearish.
Growth
premium
Interest
rates
Composition
adjustments
Satellite allocation basis market sentiment lead indicator
Expected (Forward)
earnings (EPS)
Fair value multiple
(Target P/E ratio)
Nifty intrinsic value
Currency Commodity
`
Fixed income Equity

4. Who should invest?
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This product is suitable for investors who are seeking*:
· To generate wealth creation over long term
· Dynamic asset allocation between equity and equity related instruments
including derivatives, and fixed income instruments
*Investors should consult their financial advisers if in doubt about whether
the product is suitable for them
#The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme
Characteristics or model portfolio and the same may vary post NFO when actual investments are made.
SCHEME
V
e
ry
H
ig
h
H
i
g
h
Moderately
High
Low
to
M
oderate
L
o
w
Moderate
Investors understand that their
principal will be at High risk
BENCHMARK
V
e
ry
H
ig
h
H
i
g
h
Moderately
High
Low
to
M
oderate
L
o
w
Moderate
NIFTY 50 Hybrid Composite
Debt 50:50 Index
RISKOMETER#
Product label
Scheme details
Scheme Name
NFO Period
Scheme Type
Plan
Option
Minimum Application Amount
Minimum Additional Application
Entry Load
Exit Load
Fund Manager
Benchmark Index
SIP/SWP/STP
Bajaj Finserv Balanced Advantage Fund
Opens on November 24, 2023 | Closes on December 08, 2023
An Open Ended Dynamic Asset Allocation Fund
Bajaj Finserv Balanced Advantage Fund - Regular Plan
Bajaj Finserv Balanced Advantage Fund - Direct Plan
Growth & IDCW
Rs. 500 (and in multiples of Re.1)
Rs. 100 (and in multiples of Re.1)
Not Applicable
8% of units up to six months from allotment - Nil | Above 8%
of units within six months- 1% of applicable NAV |
More than six months - Nil
Mr. Nimesh Chandan and Mr. Sorbh Gupta (Equity Portion) |
Mr. Siddharth Chaudhary (Debt Portion)
NIFTY 50 Hybrid Composite Debt 50:50 Index
Available
• Investors who want to add dynamic asset allocation to their portfolio.
• Investors who want diversification in their portfolio.
• Investors who seek professional fund management.
• Investors who want potential capital appreciation with mitigation of downside risk.
• Investors who have a long-term investment horizon of at least five years.
Bajaj Finserv Balanced Advantage Fund
An Open Ended Dynamic Asset Allocation Fund