CNN Central News & Network–ITDC India Epress/ITDC News Bhopal : Markets don’t move in a straight line. Some days they rally. On others, they slide. And sometimes, they move sideways — neither rising nor falling sharply.

A strategy that can adapt to and leverage different market conditions can be a suitable addition to a portfolio.

Enter the Bajaj Finserv Equity Savings Fund, a hybrid fund that combines equity, debt, and arbitrage strategies in a way that aims to respond to each phase of the market.

The scheme’s New Fund Offer period began on July 28, 2025, and ends on August 11, 2025. Read on to find out more about how the Bajaj Finserv Equity Savings Fund seeks to navigate fluctuations in the market and how you can invest.

Sideways markets: Arbitrage opportunities

A sideways market is when stock prices move within a narrow range without a clear upward or downward trend. It usually reflects market uncertainty, where investors are waiting for stronger signals before making significant moves.

In this phase, returns from equities may not be high. This is where arbitrage and debt benefit a portfolio. In a sideways market:

Arbitrage strategies can capture small and brief pricing gaps between two markets (eg: the cash and future markets). Multiple small spreads can potentially add up to reasonable returns when managed strategically.

Debt instruments can offer relatively stable returns through interest income and act as a buffer against volatility.

The Bajaj Finserv Equity Savings Fund may increase allocation to these components when the market lacks clear direction (within regulatory limits and as per allocation pattern mentioned in the Scheme Information Document).

Bull market: Potential for upside

When markets rise, the value of stocks can increase on the back of earnings expansion, economic momentum, and investor optimism. In such conditions, the equity component of the portfolio can potentially capture upside opportunities.

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