Bajaj Finserv Multi Asset Allocation Fund: Multiple asset classes with growth plus dividend yield combo

As per SEBI's mandate Multi Asset Allocation Fund must investment minimum 10% of its assets in each of at least three asset classes e.g. equity, fixed income, commodities etc. Bajaj Finserv AMC launched Bajaj Finserv Multi Asset Allocation Fund in June 2024. The fund’s equity strategy has an unique blend of dividend yield and growth stocks. Though the fund is relatively new the performance of the fund has been impressive. In this article, we will review Bajaj Finserv Multi Asset Allocation Fund.

Why Multi Asset Allocation?

• Winners rotate across asset classes (see the chart below). In the last 10 years, equity was the top performing asset class 3 times, debt once, gold 4 times and silver 3 times in last 11 years.
  
  

  

  Source: Advisorkhoj, NSE. Equity is represented by Nifty 50 TRI, Debt by Nifty 10 year Benchmark G-Sec Index, Gold and Silver by MCX spot prices, as of 30^th November 2025



• Winners rotate within asset classes as well (see the chart below). In the last 10 years, large cap was the top performing segment 4 times, midcap once and small cap 6 times.
  
  

  

  Source: Advisorkhoj, NSE. Equity is represented by Nifty 50 TRI, Debt by Nifty 10 year Benchmark G-Sec Index, Gold and Silver by MCX spot prices, as of 30^th November 2025

Investing dilemma – Asset allocation

This rotation of winners across and within asset classes results in a dilemma of selecting which asset classes to invest in.

An asset allocation which diversifies your investment across different asset classes provides optimal solution for this investing dilemma. While traditional asset allocation involves allocating your investments between equity and fixed income (debt), a multi asset allocation strategy can provide more effective asset allocation solution due to the counter cyclical relationship between equity and gold (see the chart below).

Source: Advisorkhoj, as of 30^th November 2025

Bajaj Finserv Multi Asset Allocation Fund – Asset allocation

Equity strategy

Dividend yield stocks tend outperform in certain market phases

High dividend yield stocks outperforms in both down trending and up trending market phases (see the chart below, marked in red).

Source: Advisorkhoj, NSE, as of 30^th November 2025

Dividend yield stocks can limit downside risks

The table below shows the biggest market corrections over the last 20 years and drawdown of the Nifty Dividend Opportunities Index versus the broad market index, Nifty 50 TRI. You can see that the dividend yield index was able to limit downside risks compared to the broad market index.

Source: Advisorkhoj, NSE, as of 30^th November 2025

Dividend yield stocks outperformed broad market across different market conditions

The table below shows the rolling returns distribution of Nifty Dividend Opportunities 50 TRI (representing high dividend yield) and Nifty 50 TRI (broad market index) for different investment tenures. You can see that dividend opportunities delivered higher percentage instances of 15% across different investment tenures.

Source: Advisorkhoj, NSE, as of 30^th November 2025

Why invest in dividend yield now?

• Interest Rates are expected to come down


• High Dividend yielding companies are trading at attractive valuations


• Compounding effect of growth and reinvestment of dividend


• Dividend Yield based investing has the potential to minimise impact against volatility


• MF is a more tax-efficient way rather investing directly in high dividend yielding stocks. If you invest directly in high dividend yielding stocks and re-invest the dividends, dividends paid to you will be taxed in your hands (per your income tax rate) and later when you sell your stocks, you will have to pay capital gains tax. Capital Gains Tax applicability in MF happens on redemption.

Debt strategy

The debt portfolio YTM is 6.52%. The average maturity of the portfolio is 1.99 years, while the modified duration is 1.79 years (source: Bajaj Finserv MF Fund Factsheet, as on 30^th November 2025).

Bajaj Finserv Multi Asset Allocation Fund outperformed peer average

Source: Advisorkhoj, NSE, as of 30^th November 2025

Current asset allocation

Source: Bajaj Finserv MF, as on 30^th November 2025. *Includes short term debt, net current assets etc.

Who can invest in Bajaj Finserv Multi Asset Allocation Fund?

• Investors looking for relatively lower volatility compared to pure equity funds


• Investors with investment horizons of 3 years or more


• Investors with a goal of wealth creation/capital appreciation

Investors should consult with their financial advisors or mutual fund distributors if Bajaj Finserv Multi Asset Allocation Fund is suitable for their investment needs.