Bajaj Allianz Life insurance company has launched a mutual fund offering in the unit-linked insurance plan (Ulip) segment. Named Bajaj Allianz Life Dynamic Asset Allocation Fund, it will offer customers the opportunity to allocate between equity and debt. The new fund offer (NFO) will remain open till September 25, 2023. The benchmark index for the fund is Crisil Dynamic Asset Allocation Index (45 per cent equity and debt each, and 10 per cent liquid).
According to Bajaj Allianz Life, the asset allocation between debt and equity of the fund will be very dynamic in nature. So, when market valuations get more expensive, the fund will reduce equity exposure. Alternatively, with more attractive market valuations, it will increase equity exposure.
The asset allocation range of the fund will be 10-90 per cent in each equity and equity-related instrument and debt and debt-related instruments, and up to 80 per cent in money market instruments.
“It is based on an in-house quantitative model with limited qualitative input from the fund manager and aims to optimise risk-return. This investment strategy will help to minimise volatility and downside risk during market corrections,” the insurer said in a press statement.
The fund will also seek to minimise volatility and protect against the downside during market corrections, while striving for growth.
“By following this strategy, the fund endeavours to shield investors from excessive market fluctuations, thus providing a level of stability that can be especially appealing during uncertain times,” Bajaj Allianz Life said in the press release.
Sampath Reddy, chief investment officer, Bajaj Allianz Life Insurance, said: “A common challenge that retail investors face is in managing asset allocation independently, depending on changing market conditions or outlook. The Baja Allianz Life Dynamic Asset Allocation Fund is a significant addition to our Ulip offerings and will enable investors to seamlessly move their funds in line with market trends. This feature aims to provide customers with peace of mind by dynamically handling asset allocation through a proprietary quantitative model and insights from fund managers. With a disciplined approach, the fund empowers investors on their path to achieving life goals.”
