
Introduction
Bajaj Finserv Mutual Fund has announced the launch of its Bajaj Finserv Multi Cap Fund, an open-ended equity scheme designed to capitalize on undervalued opportunities across large-cap, mid-cap, and small-cap stocks. With the New Fund Offer (NFO) opening on February 6, 2025, and closing on February 20, 2025, this fund aims to blend diversification with a disciplined contrarian strategy to deliver long-term wealth creation
Key Features of the Bajaj Finserv Multi Cap Fund
Contrarian Investment Strategy The fund adopts a contrarian approach, targeting undervalued stocks overlooked by the broader market. By identifying pricing inefficiencies, turnaround stories, and companies poised for cyclical growth, it seeks to capitalize on market overreactions and underreactions.
Balanced Market Cap Allocation
Minimum 25% allocation to large-cap, mid-cap, and small-cap stocks each, ensuring diversified exposure.
Remaining 25% allocated flexibly across market caps for tactical adjustments 4.
Benchmark & Philosophy
Benchmark: Nifty 500 Multicap 50:25:25 TRI Index.
INQUBE Investment Philosophy: Combines behavioral insights, quantitative analysis, and rigorous research to identify undervalued sectors and companies.
Fund Management
Equity Portfolio: Managed by Nimesh Chandan (CIO) and Sorbh Gupta, leveraging 24+ years of market experience.
Debt Portion: Overseen by Siddharth Chaudhary for stability.
Investment Flexibility
Minimum Investment: ₹500 (lumpsum/SIP) with additional investments starting at ₹100.
Exit Load: 1% on redemptions exceeding 10% within six months; no exit load after six months
Why Consider This Fund?
Diversification: Exposure to all market segments reduces concentration risk while capturing growth across business cycles.
Margin of Safety: Contrarian investing allows buying undervalued stocks at lower prices, offering a cushion against volatility.
Long-Term Focus: Ideal for investors with a 5+ year horizon to ride out market cycles and realize full potential
Who Should Invest?
Investors seeking high-risk, high-reward opportunities in undervalued assets.
Those comfortable with market fluctuations and aiming for sustainable wealth creation.
Individuals looking to diversify beyond single-market-cap funds
Performance Comparison: Leading multi cap funds
The table below compares the performance of leading multi cap fund:
Scheme Name | NAV | Launch Date | AUM (Crore) | TER (%) | Rtn (%) | Rank | Rtn (%) | Rank | Rtn (%) | Rank | Rtn (%) | Rank | Rtn (%) | |
Kotak Multicap Fund Reg Gr | 18.01 | 03-09-2021 | 16,065 | 1.65 | 12.57 | 11/24 | 22.46 | 1/13 | - | - | - | - | 19.27 | |
Nippon India Multi Cap Gr Gr | 272.43 | 25-03-2005 | 39,385 | 1.55 | 15.56 | 7/24 | 21.97 | 2/13 | 22.86 | 2/8 | 13.55 | 4/6 | 18.09 | |
HDFC Multi Cap Fund Gr | 17.67 | 05-12-2021 | 16,884 | 1.68 | 10.14 | 18/24 | 19.92 | 3/13 | - | - | - | - | 19.69 | |
Axis Multicap Fund Reg Gr | 16.78 | 05-12-2021 | 7,041 | 1.79 | 20.62 | 1/24 | 19.51 | 4/13 | - | - | - | - | 18.0 | |
ICICI Pru Multi Cap Gr | 748.97 | 01-10-1994 | 14,019 | 1.75 | 13.94 | 10/24 | 18.51 | 5/13 | 20.35 | 5/8 | 14.1 | 2/6 | 15.27 |
*Returns shown above are as on Feb 04, 2025
Expert Insights
Ganesh Mohan (CEO, Bajaj Finserv AMC):“This fund unlocks hidden value in overlooked assets, combining contrarian strategies with disciplined allocation to build sustainable wealth” .
Nimesh Chandan (CIO):“Our framework ensures equal opportunities to discover undervalued ideas across market caps, supported by data-driven insights”
Conclusion
The Bajaj Finserv Multi Cap Fund offers a unique blend of contrarian investing and balanced diversification, making it a compelling choice for investors aiming to capitalize on undervalued opportunities. With its structured approach and expert management, the fund aligns well with long-term wealth creation goals.
Disclaimer: Mutual fund investments are subject to market risks. Read the Scheme Information Document (SID) carefully before investing
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them Note: The above information has been sourced from the Scheme Information Document provided by Bajaj Finserv Asset Management. Read the entire document before investing, Disclaimer: Jaiprakash (ARN/Distributor - 70524; brand name Vasundhra Investment) is the distributor of the mutual fund. Please consult your investment advisor before investing
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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