Adapting to market changes with Bajaj Finserv Flexi Cap Fund: A strategic approach

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A flexi cap fund can be a strategic addition to your investment portfolio. These schemes have the flexibility to invest in companies across market capitalisations depending on the economic situation.

Here, we will discuss Bajaj Finserv Flexi Cap Fund from Bajaj Finserv Asset Management Limited. This open-ended equity scheme offers a dynamic and versatile investment approach. Let’s check it out in detail.

  • Table of contents
  1. Understanding Bajaj Finserv Flexi Cap Fund
  2. Features of Bajaj Finserv Flexi Cap Fund
  3. FAQ

Understanding Bajaj Finserv Flexi Cap Fund

Bajaj Finserv Flexi Cap Fund is an investment option that is not bound by strict caps on market capitalisation. This gives the fund the flexibility to invest across large cap, mid cap, and small cap stocks. The primary objective of Bajaj Finserv Flexi Cap Fund is to generate long-term potential capital appreciation by investing predominantly in equity and related instruments across market capitalization.

However, there is no assurance that the investment objective of the Scheme will be achieved.

Features of Bajaj Finserv Flexi Cap Fund

Asset allocation: The asset allocation pattern of the scheme specifies that the fund will allocate between 65% to 100% of its funds to equity and equity-related instruments. These investments will cover companies falling under the categories of large cap, mid cap, and small cap, as defined by SEBI. To explain, large cap companies are those ranked from 1st to 100th, mid cap from 101st to 250th, and small cap from 251st onwards.

The fund management team rearranges the portfolio based on prevailing market conditions and the AMFI listing of stocks every 6 months. Emphasis is given to companies with a competitive advantage, especially in sectors with substantial growth opportunities.

Balancing between growth and valuation is crucial in building the portfolio.

However, the fund manager will exercise discretion to select sectors with growth potential over the medium to long term, considering factors such as growth prospects and valuations.

In bearish market conditions, the fund manager may allocate up to 35% of the portfolio to debt and money market instruments to preserve capital.

Benchmark: The benchmark index for this fund is the S&P BSE 500 TRI, providing a standard against which performance can be measured.

Plans offered: Investors can choose from two plans:

  • Bajaj Finserv Flexi Cap Fund – Direct Plan
  • Bajaj Finserv Flexi Cap Fund – Regular Plan

Minimum application amount: The minimum application amount for fresh subscriptions is Rs. 500, with subsequent multiples of Re. 1. For additional applications, the minimum amount is Rs. 100, with multiples of Re. 1. For those interested in a Systematic Investment Plan (SIP), they can start with a minimum of Rs. 500, up to Rs. 1,000, requiring a minimum of 60 instalments. If the SIP amount is above Rs. 1,000, a minimum of 6 instalments are needed to begin investing.

In an ever-changing financial landscape, it's crucial to have investment options that can adjust to shifting market dynamics. Bajaj Finserv Flexi Cap Fund offers just that – a strategic approach that allows you to navigate equity market changes while aiming for long-term capital appreciation. The plan has the flexibility to invest in companies across market capitalisations, offering investors agility and adaptability. However, always remember that all investments come with inherent risks, and seeking advice from financial advisors or distributors is essential to make sound investment decisions.

FAQs:

What are the advantages of Bajaj Finserv Flexi Cap Fund? Bajaj Finserv Flexi Cap Fund provides the flexibility to invest across different market caps, making it suitable for varying equity market conditions.

Is there a guaranteed return with Bajaj Finserv Flexi Cap Fund? No, there's no guarantee of returns with Bajaj Finserv Flexi Cap Fund. The fund aims to provide long-term capital appreciation but is subject to market risks.

How can I invest in Bajaj Finserv Flexi Cap Fund? You can invest in Bajaj Finserv Flexi Cap Fund through a Systematic Investment Plan (SIP) with a minimum of 60 instalments if your investment amount is between Rs. 500 and Rs. 1,000, or with a minimum of 6 instalments if your SIP amount is above Rs. 1,000.

What is the benchmark for Bajaj Finserv Flexi Cap Fund? The benchmark for Bajaj Finserv Flexi Cap Fund is the S&P BSE 500 TRI, which is used to measure its performance.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. This document should not be treated as an endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purposes only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals, and horizon. This information is subject to change without any prior notice.