Latest news with #BajajFinservAMC
The Wire
7 hours ago
- Business
- The Wire
NFO Alert: Introducing Bajaj Finserv Small Cap Fund
Pune, Maharashtra, India (NewsVoir) Risk is often misunderstood as something to be avoided, but in investing, it's the fuel that can power long-term returns. It's also important to recognize that risk isn't defined by size – sometimes, even large, familiar companies can fail due to issues like poor governance or excessive debt. Long-term outperformance doesn't come from size alone, but from quality, strong governance, and sustainable growth. The key is not to avoid risk, but to understand it, manage it, and potentially use it to your advantage. This is especially true in the small cap space, which tends to be highly volatile. But in investing, higher risk usually means higher potential returns. To tap into the potential of small caps while mitigating risk through research-backed stock selection, the Bajaj Finserv AMC announces the launch of Bajaj Finserv Small Cap Fund with a 3-in-1 advantage: Quality – companies with distinct competitive advantage, Growth – companies with high scalability potential, and Value – companies that are trading at below their intrinsic value. The New Fund Offer period begins on June 27, 2025 and is on till July 11, 2025. Units will be available at a offer price of Rs. 10 during the NFO. What are small cap funds? Small cap companies are businesses ranked 251st and beyond on the basis of market capitalisation on the stock exchange as per SEBI guidelines. They often operate in emerging sectors and may offer higher growth potential over the long term. For instance, in the past half-a-decade, small caps have outpaced large and mid-caps in profit contribution, growing up to 2.5X faster. Source: Ace Equity, Data as on Dec 31, 2024 Alongside this, small cap funds offer a broader diversification, spanning across sectors, themes and offering exposure to the companies powering India's growth story. Source: BSE, Data as on May 31, 2025 Why invest in small caps now? The FY25 market correction has brought down small cap prices, but the fundamentals of several companies remain strong, creating a suitable entry point. Profit growth and return ratios continue to be healthy, highlighting the strength of earnings potential. Source: Ace Equity Many small caps are leading quietly in niche markets, driving innovation and expansion. This makes it a suitable time to make an entry into the small caps market. Why Bajaj Finserv Small Cap Fund? • Three-pronged alpha strategy: A balanced blend of Growth, Quality, and Value styles. • Differentiated investment process: The proprietary INQUBE framework leverages top-down megatrends, bottom-up stock selection, and behavioural insights. • Investment expertise: Bajaj Finserv AMC has a seasoned investment team with deep multi-sector expertise. The company currently has 78 unique small cap holdings across existing funds. The five pillars of Bajaj Finserv Small Cap Fund • Quality: The fund will focus on companies with sound fundamentals, consistent earnings performance, and sustainable competitive advantages. • Growth: Portfolio will comprise businesses with a long-term growth vision, scalable models, and the potential to sustain performance over time. • Undervalued opportunities: The fund identifies stocks trading below their intrinsic value, often strong companies facing temporary mispricing or undergoing business turnarounds. • Leadership: The fund backs emerging category leaders that dominate niche segments and hold high market share in specific micro-markets. • Governance: The portfolio prioritises companies with transparent business practices, aligned promoter interests, and experienced, credible management teams. Plan steady investments in small cap funds One way to build long-term exposure to small caps is through a Systematic Investment Plan. With the help of an SIP calculator, you can plan your SIPs in a small cap fund. An SIP calculator helps you visualise how regular monthly investments can grow over time. SIPs allows you to invest regularly while managing market volatility through rupee-cost averaging. When you use an SIP calculator, you can set realistic goals, stay consistent and take advantage of the power of compounding as well as rupee cost averaging. With an SIP in Bajaj Finserv Small Cap Fund, you can not only explore the small cap sector but also experience potential growth while mitigating risks. How to invest You can invest in the Bajaj Finserv Small Cap Fund both online as well as offline. Any investment you make can be done directly or through a mutual fund distributor. To learn more about the fund and invest, visit New Fund Offer Opens on: Friday, June 27, 2025 New Fund Offer Closes on: Friday, July 11, 2025 Scheme re-opens on: Within five business days of allotment date Mutual Fund investments are subject to market risks, read all scheme related documents carefully. (Disclaimer: The above press release comes to you under an arrangement with Newsvoir and PTI takes no editorial responsibility for the same.).
Fashion Value Chain
10 hours ago
- Business
- Fashion Value Chain
NFO Alert: Introducing Bajaj Finserv Small Cap Fund
Risk is often misunderstood as something to be avoided, but in investing, it's the fuel that can power long-term returns. It's also important to recognize that risk isn't defined by size – sometimes, even large, familiar companies can fail due to issues like poor governance or excessive debt. Long-term outperformance doesn't come from size alone, but from quality, strong governance, and sustainable growth. Invest in Bajaj Finserv Small Cap Fund NFO The key is not to avoid risk, but to understand it, manage it, and potentially use it to your advantage. This is especially true in the small cap space, which tends to be highly volatile. But in investing, higher risk usually means higher potential returns. To tap into the potential of small caps while mitigating risk through research-backed stock selection, the Bajaj Finserv AMC announces the launch of Bajaj Finserv Small Cap Fund with a 3-in-1 advantage: Quality – companies with distinct competitive advantage, Growth – companies with high scalability potential, and Value – companies that are trading at below their intrinsic value. The New Fund Offer period begins on June 27, 2025 and is on till July 11, 2025. Units will be available at a offer price of Rs. 10 during the NFO. What are small cap funds Small cap companies are businesses ranked 251st and beyond on the basis of market capitalisation on the stock exchange as per SEBI guidelines. They often operate in emerging sectors and may offer higher growth potential over the long term. For instance, in the past half-a-decade, small caps have outpaced large and mid-caps in profit contribution, growing up to 2.5X faster. Source: Ace Equity, Data as on Dec 31, 2024 Alongside this, small cap funds offer a broader diversification, spanning across sectors, themes and offering exposure to the companies powering India's growth story. Source: BSE, Data as on May 31, 2025 Why invest in small caps now The FY25 market correction has brought down small cap prices, but the fundamentals of several companies remain strong, creating a suitable entry point. Profit growth and return ratios continue to be healthy, highlighting the strength of earnings potential. Source: Ace Equity Many small caps are leading quietly in niche markets, driving innovation and expansion. This makes it a suitable time to make an entry into the small caps market. Why Bajaj Finserv Small Cap Fund Three-pronged alpha strategy : A balanced blend of Growth, Quality, and Value styles. Differentiated investment process : The proprietary INQUBE framework leverages top-down megatrends, bottom-up stock selection, and behavioural insights. Investment expertise: Bajaj Finserv AMC has a seasoned investment team with deep multi-sector expertise. The company currently has 78 unique small cap holdings across existing funds. The five pillars of Bajaj Finserv Small Cap Fund Quality : The fund will focus on companies with sound fundamentals, consistent earnings performance, and sustainable competitive advantages. Growth : Portfolio will comprise businesses with a long-term growth vision, scalable models, and the potential to sustain performance over time. Undervalued opportunities : The fund identifies stocks trading below their intrinsic value, often strong companies facing temporary mispricing or undergoing business turnarounds. Leadership : The fund backs emerging category leaders that dominate niche segments and hold high market share in specific micro-markets. Governance: The portfolio prioritises companies with transparent business practices, aligned promoter interests, and experienced, credible management teams. Plan steady investments in small cap funds One way to build long-term exposure to small caps is through a Systematic Investment Plan. With the help of an SIP calculator, you can plan your SIPs in a small cap fund. An SIP calculator helps you visualise how regular monthly investments can grow over time. SIPs allows you to invest regularly while managing market volatility through rupee-cost averaging. When you use an SIP calculator, you can set realistic goals, stay consistent and take advantage of the power of compounding as well as rupee cost averaging. With an SIP in Bajaj Finserv Small Cap Fund, you can not only explore the small cap sector but also experience potential growth while mitigating risks. How to invest You can invest in the Bajaj Finserv Small Cap Fund both online as well as offline. Any investment you make can be done directly or through a mutual fund distributor. To learn more about the fund and invest, visit New Fund Offer Opens on: Friday, June 27, 2025 New Fund Offer Closes on: Friday, July 11, 2025 Scheme re-opens on: Within five business days of allotment date Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Time of India
18-06-2025
- Business
- Time of India
Smallcaps soar Rs 75 lakh crore in value over 7 years, growing 5x: Study
India's small-cap stocks have added a staggering Rs 75 lakh crore in market value since 2017, ballooning from Rs 17 lakh crore to Rs 92 lakh crore by end-2024, a fivefold jump driven by a 27.6% compound annual growth rate, according to a study by Bajaj Finserv Asset Management Company (AMC). This sharp rise dwarfs the returns of large-cap and mid-cap peers and underscores the growing clout of small caps in India's equity landscape. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read Now Undo The study found that while large-cap and mid-cap indices posted a CAGR of 14.5% and 21.6% respectively between 2017 and 2024, small caps have firmly outpaced them. More telling was the contribution of small-cap companies to the overall market capitalisation, which rose 1.4 times over the past three years, even as their share of corporate profits swelled 2.5 times in the last four years. Despite a modest 4% rise in the small-cap index since FY24, the segment saw a 38% jump in profit after tax (PAT) during FY25, climbing from Rs 21,669 crore to Rs 29,941 crore. Bajaj Finserv AMC pointed out that this decoupling between prices and earnings suggests 'unrealized value' in the space. Moreover, the study noted that '74% of the top 250 small-cap companies reported a double digit returns on capital employed (ROCE),' signaling strong fundamentals despite recent price corrections. Live Events Quality is key as volatility persists The second half of FY25 saw a correction in small-cap stocks, with most still trading below their 52-week highs as of April 2025. This has opened up 'an opportunity to accumulate quality small caps at better valuation,' the study said. Still, the volatility underscores the importance of selectivity. Bajaj Finserv AMC warns that 'nearly 50% of small-cap companies from 2017 have declined into the micro-cap category,' reinforcing the risk of indiscriminate exposure. Although 196 small-cap IPOs hit the market since 2020, only four have transitioned to mid-cap status and none to large-cap territory — further highlighting the need for careful stock selection. Quality index outshines peers Bajaj Finserv AMC emphasized that quality small caps have consistently outperformed their broader counterparts. 'The Nifty Small Cap 250 Quality 50 TRI has outperformed the Nifty Small Cap 250 TRI in 14 of the last 19 financial years,' the study said. In fact, the quality index 'delivered higher returns than all other indices in nine financial years from FY10,' with evidence that it has weathered volatility better in 17 of the past 19 financial years. Additionally, in some years, the Small Cap Quality index 'has exhibited lower standard deviation than large caps,' the study said, underlining its potential for steadier performance. While smallcaps remain prone to cyclical movements and elevated risk, the study presents a case for investors to reassess the segment with a quality lens. The long-term outperformance of quality indices and growing earnings power signal a maturing sector, albeit one that still demands rigorous screening and discipline. Also read | Neither largecaps, nor smallcaps! India Inc's Q4 result season belongs to the middle order
Economic Times
18-06-2025
- Business
- Economic Times
Smallcaps soar Rs 75 lakh crore in value over 7 years, growing 5x: Study
India's small-cap stocks have added a staggering Rs 75 lakh crore in market value since 2017, ballooning from Rs 17 lakh crore to Rs 92 lakh crore by end-2024, a fivefold jump driven by a 27.6% compound annual growth rate, according to a study by Bajaj Finserv Asset Management Company (AMC). ADVERTISEMENT This sharp rise dwarfs the returns of large-cap and mid-cap peers and underscores the growing clout of small caps in India's equity landscape. The study found that while large-cap and mid-cap indices posted a CAGR of 14.5% and 21.6% respectively between 2017 and 2024, small caps have firmly outpaced them. More telling was the contribution of small-cap companies to the overall market capitalisation, which rose 1.4 times over the past three years, even as their share of corporate profits swelled 2.5 times in the last four years. Despite a modest 4% rise in the small-cap index since FY24, the segment saw a 38% jump in profit after tax (PAT) during FY25, climbing from Rs 21,669 crore to Rs 29,941 crore. Bajaj Finserv AMC pointed out that this decoupling between prices and earnings suggests 'unrealized value' in the the study noted that '74% of the top 250 small-cap companies reported a double digit returns on capital employed (ROCE),' signaling strong fundamentals despite recent price corrections. The second half of FY25 saw a correction in small-cap stocks, with most still trading below their 52-week highs as of April 2025. This has opened up 'an opportunity to accumulate quality small caps at better valuation,' the study said. ADVERTISEMENT Still, the volatility underscores the importance of selectivity. Bajaj Finserv AMC warns that 'nearly 50% of small-cap companies from 2017 have declined into the micro-cap category,' reinforcing the risk of indiscriminate exposure. Although 196 small-cap IPOs hit the market since 2020, only four have transitioned to mid-cap status and none to large-cap territory — further highlighting the need for careful stock selection. Bajaj Finserv AMC emphasized that quality small caps have consistently outperformed their broader counterparts. 'The Nifty Small Cap 250 Quality 50 TRI has outperformed the Nifty Small Cap 250 TRI in 14 of the last 19 financial years,' the study said. In fact, the quality index 'delivered higher returns than all other indices in nine financial years from FY10,' with evidence that it has weathered volatility better in 17 of the past 19 financial years. ADVERTISEMENT Additionally, in some years, the Small Cap Quality index 'has exhibited lower standard deviation than large caps,' the study said, underlining its potential for steadier smallcaps remain prone to cyclical movements and elevated risk, the study presents a case for investors to reassess the segment with a quality lens. The long-term outperformance of quality indices and growing earnings power signal a maturing sector, albeit one that still demands rigorous screening and discipline. ADVERTISEMENT Also read | Neither largecaps, nor smallcaps! India Inc's Q4 result season belongs to the middle order (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
18-06-2025
- Business
- Business Standard
How to make money in stock market? Bet on small-caps, say analysts
Investing in quality small-cap stocks for the long-term is a good way to make money in the stock markets, suggest analysts. A recent note by Bajaj Finserv AMC suggests India's small-cap segment has delivered healthy growth over the past seven calendar years, with market capitalisation (market-cap) of this basket surging fivefold – from ₹17 trillion in 2017 to ₹92 trillion by the end of 2024 — reflecting a robust compound annual growth rate (CAGR) of 27.6 per cent during this period. In comparison, large-cap and mid-cap segments recorded CAGR of 14.5 per cent and 21.6 per cent, respectively, during the same period, Bajaj Finserv AMC shows. The contribution of small-caps to the overall market-cap has grown 1.4 times over the last three years, the note said. At the same time, their contribution to corporate profits has surged 2.5 times in the past four years. This trend, Bajaj Finserv AMC said, reflects the increasing prominence of the small-cap segment and the broader range of investment opportunities it now presents. The Nifty Small Cap 250 Quality 50 total returns index (TRI) has outperformed the Nifty Small Cap 250 TRI in 14 of the last 19 financial years, Bajaj Finserv AMC findings reveals. Overall, the quality index delivered higher returns than most other indices in nine financial years from FY10. The road ahead Market experts believe that small-cap segment holds promise even at the current juncture, provided investors do their homework diligently, invest in quality stocks and stay put for the long term. 'I continue to believe India is a small-cap market. While the headline indexes - the BSE Sensex and the Nifty 50 - may not deliver much return for the next couple of years, at smaller levels there are amazing companies in India,' said Shankar Sharma, founder, GQuant Investech. As of April 2025, most small-caps continue to trade below their 52-week highs, making the segment appealing from a valuation standpoint, experts suggest. While the small-cap index gained only 4 per cent since fiscal year 2023-24 (FY24), profit after tax (PAT) of companies in this segment grew by 38 per cent, highlighting the segment's unrealised value, the Bajaj Finserv AMC note said. "Despite the price correction, small-cap profits rose to ₹29,941 crore in FY25 from ₹21,669 crore in FY246. Moreover, 74 per cent of the top 250 small-cap companies reported a double digit returns on capital employed (ROCE), indicating strong underlying fundamentals," the note said. At the bourses, meanwhile, the Nifty Smallcap 250 index has seen an impressive run in the last two years till date with a gain of 64.4 per cent. The Nifty 50 index, on the other hand, moved up 32 per cent during this period, ACE Equity data shows. Transformers & Rectifiers (India) has been the top performer among small-cap stocks, rallying 1,132 per cent in the last two years till date. Wockhardt, Garden Reach Shipbuilders, IFCI, Multi Commodity Exchange of India, JSW Holdings, Godfrey Phillips India and PG Electroplast are some of the other stocks that zoomed between 365 per cent and 703 per cent during this period, ACE Equity data shows. "Most macroeconomic parameters remain conducive for the markets. Only major concern for the Indian equity market is ongoing war between Israel and Iran. Any possible rise in oil prices beyond $90 a barrel would impact the domestic equities quite significantly. Otherwise, the Indian market outlook – especially for the small and mid-cap segment - remains very robust," said G Chokkalingam, founder and head of research at Equinomics Research.
