Latest news with #BajajFinservSmall
Time of India
03-07-2025
- Business
- Time of India
NFO Update: Bajaj Finserv Mutual Fund launches small cap fund
Bajaj Finserv Mutual Fund has launched Bajaj Finserv Small Cap Fund , an open-ended equity scheme predominantly investing in small cap stocks, that offers quality, growth and value. The fund is open for subscription and will close on July 11. Also Read | Record inflow of over Rs 15,000 crore in May. What is making arbitrage mutual funds gain investors' interest? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Bajaj Finserv Small Cap Fund is designed for investors aiming to build long-term wealth by investing primarily in equity and equity-related instruments of small cap companies, according to a release by the fund house. The recent correction in small caps presents a compelling entry point for long-term investors. Even though over 80% of small-cap companies have posted strong profit growth of 38% and solid return ratios, most of them are still trading 15–45% below their 52-week highs. Live Events This recent market correction has opened up a clear gap between the true value of these companies and their current market prices, said the release. Coupled with structural tailwinds such as the 'Make in India' push, rising formalisation, and digital transformation across sectors, small caps are well-positioned to benefit disproportionately in the next growth cycle, making this an attractive investment opportunity. The equity portion of the fund will be managed by Nimesh Chandan , CIO and Sorbh Gupta, Head - Equity, and the debt portion by Siddharth Chaudhary , Head – Fixed Income. The minimum application amount is Rs 500 (Plus multiples of Re 1), with a minimum additional application of Rs 100 (Plus multiples of Re 1). An exit load of 1% is applicable if the investment is redeemed within six months of the date of the allotment. The fund offers both growth and IDCW (Income Distribution cum Capital Withdrawal) options. 'The launch of the Small Cap Fund reflects our deep conviction in the long-term potential of India's dynamic small-cap universe. Small caps typically exhibit higher volatility than broader indices, underscoring the importance of active management in navigating market fluctuations and identifying quality opportunities,' said Ganesh Mohan , Managing Director, Bajaj Finserv AMC. 'The strategy is built around discovering high-quality companies in the early phases of growth that are positioned to outperform over time. With the recent small cap correction, the NFO is poised to take advantage of this golden opportunity, enabling investors to participate in long term wealth creation as these businesses scale and contribute meaningfully to the economy,' he added. Also Read | JioBlackRock launches mutual fund access on MyJio, calls it a new era of investing Bajaj Finserv Small Cap Fund is well-suited for those looking to benefit from the growth potential of fundamentally strong businesses that are currently trading below their intrinsic value. It also appeals to investors who want to diversify their portfolios by adding small-cap stocks with growth prospects. The fund is benchmarked to the BSE 250 SmallCap Index TRI. 'Our new small cap fund will be a portfolio of quality businesses with scalability that trade below their intrinsic value. Many industries and subsectors are available exclusively in the small cap category. In essence, there are opportunities to pick up leaders in emerging businesses and challengers in others from this small cap space,' said Nimesh Chandan, Chief Investment Officer, Bajaj Finserv AMC. 'The NSE small cap 250 Index is almost flat year on year. However, many companies generated strong profit growth last year. This allows us to invest in those small cap companies at valuations lower than last year after this time correction,' Nimesh Chandan added It goes beyond selecting quality stocks by rigorously filtering out companies with weak governance, inconsistent fundamentals, or financial red flags. This disciplined approach narrows the universe of over 1,100 small-cap stocks to a focused set of high-potential businesses. A key part of the process is our internal forensic and risk-aware analysis, which filters out companies with weak governance or financial red flags. From a universe of around 300-400 small-cap stocks, this disciplined approach narrows the selection to a portfolio of 40– 100 carefully chosen businesses
The Wire
03-07-2025
- Business
- The Wire
Bajaj Finserv Small Cap Fund: Using Quality to Mitigate the Impact of Volatility
Pune, Maharashtra, India (NewsVoir) Small Cap Funds are known for their potential to generate higher returns in the long run, but they are often sensitive to market volatility. These market movements are often a result of different factors like limited liquidity, changes in market sentiment or others. In this scenario, selecting the suitable small cap company becomes essential to help mitigate the market swings. However, even a quality portfolio can not be immune to short-term market movements. The Bajaj Finserv Small Cap Fund is built on a quality-focused approach that aims to potentially manage volatility. When you invest in companies with sound fundamentals, they are often potentially better equipped to ride out the market uncertainties. This can help you with an entry point into a sector that's building the long-term growth story of India's small cap sector. Why quality matters in small cap investing The small cap segment comprises companies that are in their nascent stages and operate in niche markets. While this offers you investment opportunities, it also comes with its own risks. Many of these businesses can lack scale or financial resilience to withstand economic downturns. Hence, simply chasing short-term growth in the small cap sector may not be suitable. The Bajaj Finserv Small Cap Fund helps mitigate these market risks through prioritising quality companies that have demonstrated stable earnings, consistent capital allocation and a competitive edge in their niche. While these businesses may not perform in the short-term, they have the potential to grow wealth in the longer run. With the quality-first approach, the fund avoids companies that can have poor governance, unstable performance or unsustainable business models. This can allow you to balance your portfolio throughout market volatility even in a segment like the small caps. A framework for navigating volatility While market swings are a part of an investor's journey, but how a fund is strategized to manage this can make a difference. The Bajaj Finserv Small Cap Fund uses a structured investment approach that combines top-down insights and bottom-up stock selection. In times of market downturns, businesses with strong fundamentals can be better placed to manage costs, maintain market share and potentially bounce back faster. With a focus on these companies, the fund seeks to reduce the effect of volatility on your portfolio. Seeking durable growth, not just momentum While many companies can build momentum in their initial stages, not all growth is sustainable. Some companies can show growth in the short-term but falter later. This can happen due to high debt accumulation, poor management practices and other factors. The Bajaj Finserv Small Cap Fund looks for growth which is backed by businesses with strong fundamentals. This means identifying companies that are not only innovative but also resilient. Having said that, the fund continues to be valuation conscious. This means that while quality and growth are important, value is equally important. Hence, it seeks out companies that are priced below their intrinsic value due to temporary factors and selects them to be a part of your portfolio. This is how the fund's philosophy takes all three elements, quality, growth and value, into consideration to build a balanced mutual fund portfolio. Potential long-term advantages In the long run, quality small cap businesses have the potential to become mid cap or large cap leaders. Hence, if you join these companies' journeys in their early stages, you can potentially benefit from long-term wealth creation, provided you remain invested across market cycles. However, this requires you to build discipline and patience to stay invested during periods of market uncertainty. The Bajaj Finserv Small Cap Fund is designed with an investment philosophy that helps in long-term compounding through a disciplined investment process. It is essential to note that the small cap sector is highly sensitive to market fluctuations. These funds may not be suitable for every investor and hence it is important to check your risk appetite and align your investments to your long-term goals. SIP can support long-term participation Another way to mitigate market risks linked to the small cap segment is through a Systematic Investment Plan. When you invest in SIP, it allows you to invest a fixed amount regularly at a pace you are comfortable with. Here, you neither need to time the market nor commit to lump sum. By spreading your investments over time, SIPs can help average out purchase costs through rupee cost averaging. If you are looking to invest in SIP you can also potentially benefit from the power of compounding that can help you potentially gain wealth in the long run. With a long-term investment plan and a willingness to ride out interim volatility you can invest in SIP and explore the small cap space. You can make use of an SIP calculator to decide on the investment amount. How to invest You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. Investments can be made through direct or regular plans. To learn more about the investment process, visit Units will be available at a offer price of Rs. 10 per unit during the NFO period (June 27, 2025 – July 11, 2025). Conclusion With a 3-in1 advantage, the Bajaj Finserv Small Cap Fund aims to build potential wealth in the long-term while effectively managing market movements. While small caps can be more susceptible to market risks, taking a structured and disciplined approach may offer you a suitable option to get small cap exposure. As always, it is advisable to consult with a financial advisor before making any investment decisions, especially in categories with higher market sensitivity. 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.).
