Bajaj Finserv Low Duration Fund - Regular (G)

The scheme is an open ended actively managed debt scheme which aims to provide optimal returns to its investors by investing in debt and money market securities with Macaulay duration of the portfolio between 6 to 12 months, resulting in a low duration investment with relatively high interest rate risk and moderate credit risk. The Scheme seeks to offer a short-term savings avenue with low risk while balancing yield and liquidity. The fund management team will use a top-down approach in the investment process, taking into account various factors such as interest rate view, term structure of interest rates, systemic liquidity, RBI`s policy stance, inflationary expectations, government borrowing program, fiscal deficit, global interest rates, and currency movements. The AMC will rigorously evaluate the securities proposed for investment to control risks, and the investment process will be carried out with a focus on generating reasonable returns with low volatility. The investment manager will invest in debt securities that are rated investment grade by credit rating agencies, or unrated debt securities that the manager believes to be of equivalent quality. However, the Scheme shall not invest more than 5% of its net assets in unrated debt and money market instruments, other than government securities, treasury bills, derivative products such as Interest Rate Swaps (IRS), Interest Rate Futures (IRF), etc. The Scheme may use derivative instruments like Interest Rate Swaps, Interest Rate Futures, Forward Rate Agreements, or other derivative instruments for the purpose of hedging and non-hedging, portfolio balancing and other purposes, as permitted under the Regulations. Hedging using Interest Rate Futures could be perfect or imperfect, subject to applicable regulations. Usage of derivatives may expose the Scheme to certain risks inherent to such derivatives. It may also invest in securitized debt. The in-house research team of the AMC will emphasize on credit analysis to determine credit risk, using a thorough evaluation process that includes the operating environment of the company, its past and future prospects, and its short and long term financial health. The AMC may also consider the ratings of approved credit rating agencies as determined by SEBI. The fund management team will also study macroeconomic conditions, including the political and economic environment and factors affecting liquidity and interest rates, to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same. The fund may also invest in other schemes managed by the AMC or in the schemes of other mutual funds, subject to prevailing regulations, and may use derivative instruments such as interest rate swaps and futures for hedging and non-hedging, portfolio balancing, and other purposes, subject to regulatory approval. It is important to note that the AMC/sponsors/trustee do not guarantee that the investment objective of the scheme will be achieved, and no guaranteed returns are being offered under the scheme.