Latest news with #BajajFinservAssetManagementCompany
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)
&w=3840&q=100)
Business Standard
21-04-2025
- Business
- Business Standard
Bajaj Finserv rolls out low-cost index funds to ride market growth
Bajaj Finserv Asset Management Company (AMC) has launched two new passive funds, the Bajaj Finserv Nifty 50 Index Fund and Bajaj Finserv Nifty Next 50 Index Fund, to expand its offerings in the index fund space. Both are open-ended index funds designed to provide long-term capital appreciation by tracking the performance of their respective benchmark indices. The funds aim to offer investors a low-cost, transparent, and efficient way to participate in India's large-cap equity market. The Bajaj Finserv Nifty 50 Index Fund is benchmarked against the Nifty 50 Total Return Index (TRI), while the Bajaj Finserv Nifty Next 50 Index Fund is benchmarked against the Nifty Next 50 TRI. The schemes replicate the respective indices by investing in the same set of constituent stocks, thereby reducing tracking error. Key highlights of the funds Broad market access: Offers exposure to India's top 100 companies through Nifty 50 and Nifty Next 50 indices. Disciplined approach: Index replication helps minimise short-term volatility and emotional decision-making. Long-term focus: Suitable for investors seeking steady equity growth without frequent portfolio changes. Fund details - Bajaj Finserv Nifty 50 Index Fund: Tracks Nifty 50 TRI; focuses on India's 50 largest companies - Bajaj Finserv Nifty Next 50 Index Fund: Tracks Nifty Next 50 TRI; targets the next rung of high-growth large caps - Fund manager: Ilesh Savla - Structure: Open-ended schemes - Availability: Growth and IDCW (Income Distribution cum Capital Withdrawal) options - Exit/Entry Load: None - SIP/SWP/STP: Available Minimum application: Nifty 50 Index Fund: Rs 500 and in multiples of Rs 500 thereafter Nifty Next 50 Index Fund: Rs 500 and in multiples of Rs 1 thereafter Ganesh Mohan, managing director of Bajaj Finserv AMC, said, 'The launch of our new passive funds reflects our belief that high-quality investment solutions should be accessible, transparent, and cost-effective. As more individuals look for smarter ways to grow their wealth, low-cost passive strategies offer a disciplined and efficient path forward.' Nimesh Chandan, chief investment officer at the AMC, said, 'Index funds offer investors staple, cost-effective exposure to the broader markets. Our current focus on large-cap indices signals our constructive and bullish view on this segment, which we believe offers stability and long-term growth potential in the current environment.'
