Available under Bajaj Life's unit-linked insurance plans, the fund enables policyholders to pursue capital appreciation while benefiting from the dual advantage of life cover and a disciplined, rules-based investment approach.
The fund tracks a customized index aligned to the BSE 500 Momentum Value 50 Index, which measures the performance of the top 50 companies in the BSE 500 based on their combined momentum and value scores. Constituent weights are based on a combination of multifactor score and market capitalisation, capped at 4% per stock.
The fund's investment strategy is built on two well-established, rules-based factors:
Value: Assessed using a company's Book Value-to-Price, Earnings-to-Price and Sales-to-Price ratios
Momentum: Based on a stock's 12-month price change, excluding the most recent month
To ensure the portfolio remains aligned with evolving momentum and valuation trends, the index is rebalanced and reconstituted quarterly.
Speaking on the launch, Srinivas Rao Ravuri, Chief Investment Officer, Bajaj Life Insurance, said, “Momentum and value represent two distinct investment approaches, with momentum seeking to participate in stocks demonstrating sustained market strength, while value focuses on companies trading at relatively attractive valuations.
The Bajaj Life BSE 500 Momentum Value 50 Index Fund brings these characteristics together through a systematic, rules-based approach, seeking to identify companies that demonstrate both attractive valuations and positive price momentum. We believe this differentiated strategy can help investors access equity market opportunities through a disciplined and systematic investment framework.”