Bajaj Finserv AMC Launches New Fund Offer (NFO) for Bajaj Finserv Small Cap Fund
Bajaj Finserv Asset Management Company (AMC) has launched a New Fund Offer (NFO) for its new mutual fund scheme, Bajaj Finserv Small Cap Fund. The subscription for this small-cap fund will open on June 27, 2025, and close on July 11, 2025.
Bajaj Finserv Mutual Fund is introducing a new offering for investors. The company has launched a new fund, Bajaj Finserv Small Cap Fund, within the small-cap segment, with subscriptions commencing on June 27, 2025, and concluding on July 11, 2025. This is an open-ended equity scheme designed to generate long-term asset growth by investing in small but potentially promising companies. A key feature of this fund is its three primary strategies – Growth, Quality, and Value – which are expected to provide investors with combined benefits.
Investment Start-Up Amount
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Investors can initiate investments in this fund starting from as low as ₹500, making it accessible to a wide range of investors. Subsequent investments can then be made in increments of ₹100 and above, with a multiplier of 1 for amounts exceeding ₹100. This fund is suitable for investors who wish to begin investing at a smaller level while aiming for significant returns. A one percent exit load will be levied on withdrawals made within six months of the allotment date.
Who is this Fund Suitable For
Bajaj Finserv Small Cap Fund is specifically designed for investors who are looking to create wealth over the long term by investing in small-cap companies. The fund house believes that many companies in the market currently trade at undervalued prices despite possessing b fundamentals. These companies have the potential to deliver superior returns to long-term investors.
Three Strategies for Strong Gains
Bajaj Finserv AMC will focus on three key investment strategies within this fund:
- Growth (Megatrends): Investments will be made in companies within market-leading trends and emerging sectors that are expected to experience rapid growth in the coming years.
- Quality (Moat Investing): Companies with b business models, good management, and sustainable competitive advantages will be prioritized.
- Value (Contrarian): Companies currently available at low prices in the market but possessing the potential for b performance in the future will be included.
Team Responsible for Portfolio Management
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The fund’s operations will be overseen by Nimesh Chander (Chief Investment Officer) and Saurabh Gupta (Head of Equity). Siddharth Choudhary (Head-Fixed Income) will manage the debt or fixed income portfolio. This experienced team will carefully analyze small-cap investments to develop a strategy for effectively utilizing investors’ funds.
Why a Unique Opportunity in Small Caps
Recent market data indicates that over 80 percent of small-cap companies have witnessed a 38 percent gain in profits over the last few months. Despite this, these companies continue to trade between 15 and 45 percent below their 52-week highs. This presents a significant opportunity for value investing, which this new fund is poised to capitalize on.
Benchmark of the Fund
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The fund’s benchmark is set at BSE 250 Small Cap Index TRI. This index represents the performance of the 250 smallest listed companies in India. This will facilitate easy comparison with the fund and help investors understand how it’s performing relative to other market options.
Proven Track Record of Bajaj Finserv Mutual Fund
Bajaj Finserv Mutual Fund has already been increasing its allocation to small-cap companies in its flexible cap fund and large and mid-cap fund. For example, the flexible cap fund’s small-cap allocation was 21.8 percent as of January 2025, rising to 26 percent as of May 2025. This indicates the company’s b belief in growth potential within the small-cap sector.
Capitalizing on Market Volatility
According to Ganesh Mohan, MD of Bajaj Finserv AMC, small-cap companies typically exhibit greater volatility than the broader market. However, this volatility can present opportunities for skilled investors who can identify promising companies at the right time. The strategy is to incorporate b quality companies into the portfolio as the market begins to recover.
Why Invest in this Fund
- Low investment amount to start
- Combination of three key investment strategies
- Experienced investment team
- Opportunity to buy good companies at discounted prices during market downturns
- Potential for better returns over the long term
