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Bajaj Allianz Life launches unique ULIP fund with dynamic asset allocation. Key things to know


Bajaj Allianz Life has launched a unique fund proposition in the ULIP segment. Bajaj Allianz Life’s Dynamic Asset Allocation Fund offers customers the opportunity to allocate between equity and debt, dynamically. The benchmark index is 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 in-house quantitative model with limited qualitative input from the fund manager and aims to optimize risk return. This investment strategy will help to minimize volatility and downside risk during market corrections.

For example: In a scenario, 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 as follows:

Equity 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 on the launch,

“Having been a part of the industry for over three decades, I have observed that a common challenge retail investors face is managing asset allocation independently, depending on changing market conditions or outlook. We are pleased that Bajaj Allianz Life’s 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 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.”

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 asset manager and insurer. 

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Updated: 02 Sep 2023, 06:28 AM IST

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.