Investing isn’t just about picking the right avenues, it’s also about potentially optimising every rupee invested. The Bajaj Finserv Multi Asset Allocation Fund follows a unique approach by focusing on companies that not only offer long-term growth potential but also have a track record of paying high dividends.

Through this approach, the fund’s portfolio recorded a dividend yield of 2.7% as of February 28th, 2025 — higher than the Nifty 50 dividend yield of 1.45% for the same period.

Growth and dividend payout strategy

A multi asset allocation fund is a hybrid fund that invests in at least three asset classes. Such funds are dynamically managed, meaning that the fund manager can freely adjust the portfolio between the three asset classes, as long as they maintain a minimum 10% allocation to each asset class.

The Bajaj Finserv Multi Asset Allocation focuses on equities, debt instruments and commodities. It may also invest in other securities like exchange traded commodity derivatives, REITs and InvITs.

For its equity portion, the fund focuses on companies that have the potential for growth while also offering high dividend payouts. Investing in such companies allows investors to Dividend yield is a measure of how much a company pays as dividends relative to its stock price. Companies with strong dividend payouts often have steady cash flows and a good track record.

These dividends, when reinvested, can increase the potential opportunities for compounded growth and therefore, enhance long-term growth potential.

Portfolio allocation strategy

The fund adopts the following approach for different asset classes in its portfolio:

1. Equity: Growth and dividend payout

  • The fund invests in a mix of companies that are growth-oriented and those with the potential of yielding dividends.
  • It looks at factors like dividend track record, payout ratios, and cash flow growth before selecting stocks.
  • Companies with potentially strong financials, including return on capital employed (ROCE) and return on equity (ROE), are given preference.
  • The fund will seek to maintain an equity-oriented portfolio to optimise growth potential and qualify for favourable equity taxation.

Note: The fund manager retains the discretion to pursue investment opportunities regardless of the style, with the aim of optimizing the risk-reward trade-off for the portfolio from time to time.

2. Fixed income: Potential for relatively stable returns

  • For the debt portion, the fund follows a dynamic duration management strategy, which means the duration of the portfolio is adjusted based on interest rate movements.
  • Investments are made in high credit-quality instruments to mitigate credit risk.

3. Gold and commodities: A hedge against volatility

  • The fund may allocate up to 55% of its portfolio to gold exchange-traded funds (ETFs), silver ETFs, and commodity derivatives.
  • Gold is often considered a good hedge against equity market fluctuations, so having exposure to it may help balance risk.

4. Real estate and infrastructure investments

  • The fund may allocate up to 10% of its portfolio to real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
  • These investments can enhance diversification and offer the potential for long-term appreciation.

A diversified option for investors

The Bajaj Finserv Multi Asset Allocation Fund offers exposure to multiple asset classes, making it a diversified investment option. By investing in equities, fixed income, commodities, REITS and InvITs, the fund aims to balance growth potential with risk management.

For investors looking for a mix of long-term wealth creation and relative stability, this fund may be an option to consider. The growth and dividend payout strategy can further optimise return potential through dividend reinvestment. Its allocation across equity, fixed income, commodities, and other assets provides flexibility and can help mitigate the impact market fluctuations. This makes the fund a suitable choice for those seeking a balanced and actively managed investment avenue.

You can invest in the Bajaj Finserv Multi Asset Allocation Fund both online and offline. You can invest via the following modes:

  1. Directly through Bajaj Finserv Asset Management Limited
  2. Through a registered mutual fund distributor
  3. Through aggregator platforms

Investment options include Systematic Investment Plan (SIP) and lumpsum. The minimum investment amount for lumpsum Rs. 500/- and in multiples of Re. 1/- thereafter and SIP is Rs. 500 (minimum six instalments for SIP). Investors can use mutual fund tools such as SIP calculator, lumpsum calculator and SIP step up calculator for help with planning their investments.  

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