Bajaj Allianz Life launches a unique ULIP fund with dynamic asset allocation. Key things you should know | spcilvly

Bajaj Allianz Life has launched a unique fund proposition in the ULIP segment. The Bajaj Allianz Life Dynamic Asset Allocation Fund offers clients the opportunity to make allocations between equity and debt dynamically. The benchmark index is the Crisil Dynamic Asset Allocation Index (45% equity, 45% debt and 10% liquid).

The asset allocation (between debt and equity) of the fund will be more dynamic/active in nature. It is based on an internal quantitative model with limited qualitative input from the fund manager and aims to optimize risk return. This investment strategy will help minimize volatility and downside risk during market corrections.

For example: in a scenario where market valuations become more expensive, the fund will reduce exposure to equities. Alternatively, with more attractive market valuations, exposure to the stock will increase. The fund’s asset allocation range will be as follows:

Equity instruments and equity-related instruments: 10%-90%;

Debt and debt-related instruments: 10%-90%;

Money market instrument: 0%-80%.

Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life Insurance, said at the launch:

“Having been part of the industry for over three decades, I have observed that a common challenge faced by retail investors is managing asset allocation independently, depending on changing market conditions or outlook. We are pleased that the Bajaj Allianz Life Dynamic Asset Allocation Fund, a significant addition to our ULIP offerings, will enable investors to seamlessly move their funds in line with market trends. This feature aims to provide peace of mind to clients by dynamically managing 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 their life goals.”

Bajaj Allianz Life Insurance is one of India’s leading and fastest growing private life insurers. The company is a partnership between two powerful and successful entities in their own right: Bajaj Finserv Limited, one of India’s most diversified non-banking financial institutions, and Allianz SE, one of the world’s leading insurers and asset managers.

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Updated: September 2, 2023, 06:28 am IST

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