Bajaj Allianz Mutual Fund NFO Review:Bajaj Allianz Mutual Fund has recently launched a New Fund Offer (NFO), in which subscription is open till September 15. Launched under the name of Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund, this scheme is a passive mutual fund. This fund, which tracks the Nifty 200 Alpha 30 Index, will invest in those 30 companies which have the highest alpha score. Subscription in this NFO, which opened on 1 September 2024, will continue till 15 September 2024. Its initial net asset value (NAV) is Rs 10.
What is the purpose of this NFO of Bajaj Allianz?
The corpus of Bajaj Allianz Nifty 200 Alpha 30 Index Fund will be invested in the 30 best performing stocks included in the Nifty 200 Alpha Index. These stocks are selected on the basis of their high alpha score from among the companies included in Nifty 200, which includes mid-cap companies apart from large caps. The high alpha score of this index tells how much better the performance of these stocks has been than their benchmark. That is, all the stocks included in it will be of the top 30 companies giving better returns than the benchmark. By tracking this index, investors get the benefit of investing in a balanced portfolio of midcap and largecap companies.
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Why invest in Bajaj Allianz Nifty 200 Alpha 30 Index Fund?
This fund invests in the top 30 companies in terms of performance of Nifty 200, giving you an opportunity to participate in the growth of the best performing companies. Along with this, this fund focuses on companies that have high growth potential and are leading the market. Being an index-based fund, investors can easily monitor the clarity and performance of their investments. The selection of stocks is done by following the benchmark index, due to which there can be no personal bias in the investment. Due to investment in different sectors and companies included in the index, this fund also gives investors an opportunity for diversification.
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Talking about the features of this new NFO, Tarun Chugh, Managing Director and CEO, Bajaj Allianz Life Insurance said, “We want to provide our customers with a reliable way to achieve their long-term financial goals. Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund gives customers an opportunity to achieve their financial goals amid the historical performance of the Indian economy and equity market. Historical data of the last 5 years indicates that the Nifty 200 Alpha 30 Index has consistently outperformed other market-cap indices with a balanced allocation between large and midcap stocks. In addition, this fund is based on a diversified and passive investment strategy, which has great growth potential. Along with these features, customers will also get the benefit of this fund being linked with ULIP.
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For which investors is this fund right?
This fund invests in large and midcap companies, so its performance is likely to be affected by market fluctuations. In such a situation, this fund is suitable only for those investors who have the ability to take risks. Investors who are willing to take high risks for high returns in the long term can consider investing in this NFO. Here long term means that investors should be prepared to invest for at least 5 to 10 years.
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Key features of Bajaj Allianz Nifty 200 Alpha 30 Index Fund
- NFO period: 1st to 15th September 2024.
- Starting NAV: Rs 10
- Minimum investment: Rs 1,700 per month
- Risk level: High
- Benchmark Index: Nifty 200 Alpha 30 Index.
Past Returns of Benchmark Index:
– Last 5 years average return: 34.24% p.a.
– Last 10 years average return: 25.89% p.a.
