Megatrend investing
This scheme is based on a unique megatrends strategy that makes it a future-ready investment.
Read MoreBAJAJ FINSERV ASSET MANAGEMENT LIMITED.
BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
To generate long term capital appreciation by investing predominantly in equity and equity related instruments across market capitalization
However, there is no assurance that the investment objective of the scheme will be achieved.
Nimesh Chandan has over 26 years of experience in the Indian Capital Markets. He has spent 22 years in Fund Management- managing and advising domestic and international investors, retail as well as institutional. Prior to joining Bajaj Finserv Asset Management Ltd., he has worked with Canara Robeco Asset Management as Head of Investments, Equities (Domestic and Offshore). He has also worked with other asset management companies including Birla Sunlife Asset Management, SBI Asset Management and ICICI Prudential Asset Management.
Sorbh Gupta has over 20 years of experience in the Indian Capital Markets. In November 2022, he was appointed as Head – Equity at Bajaj Finserv Asset Management Limited. Prior to joining Bajaj Finserv Asset Management Limited, he was associated with Quantum Asset Management Company Private Ltd. He has also worked with other financial companies such as Siddhesh Capital Markets Pvt. Ltd. and Pranav Securities Pvt. Ltd.
Siddharth Chaudhary joined the Company in July 2022 as a Senior Fund Manager – Fixed Income. Prior to this, he was associated with Sundaram Asset Management Co. Ltd from April 2019 - July 2022 as Head Fixed Income – Institutional Business. From April 2017 – March 2019, he served as a Head – Fixed Income, and from August 2010 – March 2017 as a Fund Manager – Fixed Income with Sundaram Asset Management Co. Ltd. During June 2006 – September 2010, he was working as Senior Manager, Treasury Dept in Indian Bank.
Equity and equity-related instruments of large cap, mid cap and small cap companies: (65%-100%)
Debt and money market instruments and units of mutual fund schemes: (0%-35%)
Units issued by REITs and InvITs: (0%-10%)
An open ended equity scheme investing across large cap, mid cap, small cap stocks.
NIL
For each purchase of units through Lumpsum / switch-in / Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP), exit load will be as follows:
to view Total Expense Ratio
A flexi cap mutual fund invests in stocks of companies across market capitalizations – large cap, mid cap and small cap. This can help the fund potentially leverage the growth opportunities offered by small and mid cap companies while benefiting from the relative stability of large cap companies.
There is no minimum allocation required in each market capitalization, so the fund manager is free to plan the flexi cap fund investment portfolio as per their growth strategy, market knowledge and insights.
Moreover, the fund manager can dynamically alter the allocation strategy for the flexi cap fund investment based on prevailing market trends. This can potentially help the fund mitigate downside risk or capitalize on segments that are performing well.
Flexi cap funds and multi cap funds both invest across large cap, mid cap, and small cap companies, but they differ in allocation flexibility. Flexi cap funds are dynamic, open-ended equity mutual funds that must invest at least 65% of their assets in equities and can freely adjust allocations across market capitalisations based on market conditions.
Multi cap funds, on the other hand, follow a more structured allocation approach, with a minimum of 25% invested each in large cap, mid cap, and small cap stocks. The choice may depend on an investor’s preference for flexibility or balanced exposure across market segments.
Flexi cap funds are actively managed and invest across market capitalisations based on the fund manager’s strategy and market outlook.
Index funds passively track a benchmark index and aim to deliver market-linked returns at relatively lower costs. The choice may depend on an investor’s risk appetite, investment preference, and financial goals.
Hybrid funds invest in a mix of equity and debt instruments, while flexi cap funds invest predominantly in equities across market capitalisations. Hybrid funds may experience relatively lower volatility, whereas flexi cap funds may offer higher long-term growth potential along with higher market risk. Investors may choose based on their financial goals, investment horizon, and comfort with market fluctuations.
Flexi cap funds invest primarily in equity and equity-related instruments and can be affected by market volatility, economic conditions, and sector-specific developments. Since these funds invest across large cap, mid cap, and small cap stocks, their portfolio allocation may vary based on market conditions and investment strategy.
Flexi cap funds aim to generate potential long-term capital appreciation by investing across market capitalisations. Since these funds invest in equities, returns are market-linked and can vary depending on market conditions, portfolio strategy, and economic trends. Returns are not guaranteed.
Flexi cap funds may be suitable for beginners looking for diversified equity exposure through a single fund. Since these funds invest across large cap, mid cap, and small cap companies, they offer exposure to different market segments. Investors should consider their risk appetite and investment horizon before investing.
Flexi cap funds are generally considered suitable for long-term investing. An investment horizon of five years or more may help investors navigate short-term market fluctuations and participate in the potential long-term growth of equities.
Yes, flexi cap funds can invest in small cap stocks along with large cap and mid cap companies. Fund managers can adjust allocations across market capitalisations based on market opportunities, valuations, and their investment strategy.
Market volatility can affect the short-term performance of flexi cap funds because these funds invest primarily in equities. During volatile market conditions, portfolio values may fluctuate. However, the flexibility to invest across different market capitalisations may help fund managers respond to changing market environments.
Flexi cap funds may be considered as part of a long-term retirement planning approach for investors seeking potential capital appreciation. Their diversified equity exposure across market capitalisations may help investors participate in long-term economic growth. Investors should align investments with their financial goals, age, and risk tolerance.
Bajaj Finserv Flexi Cap Fund follows a megatrends investing approach that focuses on long-term structural trends across technology, regulation, economic growth, sustainability, demographics, and evolving consumer behaviour. The fund looks at themes such as digitisation, manufacturing initiatives like PLI and Make in India, infrastructure growth, clean energy, and changing lifestyle patterns that may influence businesses over time. It also has the flexibility to invest across large cap, mid cap, and small cap companies based on evolving market conditions and opportunities.
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Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
