Bajaj Finserv Flexi Cap Fund: Features and investment philosophy

Investing in the stock market has always been a topic of interest for investors as they seek ways to grow their hard-earned money over time and build a prosperous future. Among the various investment options available, mutual funds offer the potential for relatively reasonable returns while mitigating risks through diversification.
While the market is flooded with a variety of mutual fund schemes, there is one proposition that stands out - the Bajaj Finserv Flexi Cap Fund. This investment offering is an investment avenue tailored to cater to the evolving needs of Indian investors.
With its distinctive features and a careful focus on long-term trends, the Bajaj Finserv Flexi Cap Fund presents an opportunity for investors to make wealth over the long term. In this article, we will take a look at some of the features of Bajaj Finserv Flexi Cap Fund.

• Table of contents:

1. What are flexi cap funds?
2. Bajaj Finserv Flexi Cap Fund
3. Features of Bajaj Finserv Flexi Cap Fund
4. INQUBE investment philosophy
5. Suitable for which type of investors?

What are flexi cap funds?

Flexi cap funds belong to the category of open-ended equity mutual funds that offer investors the flexibility to invest across companies of varying market capitalization, including large-cap, mid-cap, and small-cap stocks. The primary objective of flexi cap funds is to generate long-term capital appreciation.

Bajaj Finserv Flexi Cap Fund

The Bajaj Finserv Flexi Cap Fund is one such offering in the Flexi Cap Fund category. Let's understand it better:

• Scheme type: An open-ended equity scheme investing across large cap, mid cap, small cap stocks
• Scheme objective: 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.
• Balanced approach: A balanced approach allows investors to benefit from both potential capital appreciation in equities and relative stability in the debt segment. This diversified allocation ensures that investors can tap into opportunities across different segments of the market, balancing growth potential with risk.
• Industry allocation: The fund invests a major portion in the Finance sector, followed by banks, electrical equipment, petroleum products, consumer durables, IT, and others. This industry-wise allocation spreads the risk and allows investors to gain exposure to different sectors of the economy.
• Investment strategy: One of the standout features of the Bajaj Finserv Flexi Cap Fund is its focus on megatrends. Megatrends are long-term, transformative forces that can shape the future and create new opportunities for investors. The fund recognizes the significance of megatrends in shaping the investment landscape and aims to capitalize on them.

Features of Bajaj Finserv Flexi Cap Fund

Open-ended flexibility

Unlike some investment options with rigid lock-in periods, the Bajaj Finserv Flexi Cap Fund offers the flexibility to enter or exit the fund at your convenience. Whether you want to invest a lumpsum amount or choose the convenient route of a Systematic Investment Plan (SIP), this fund caters to both approaches with ease. The minimum application amount is just Rs. 500, and with SIPs, you can start with a minimum of Rs. 500 for 60 instalments or above Rs 1,000 for a minimum of 6 instalments.

Diverse portfolio approach

This fund truly understands the essence of diversification and goes beyond the conventional boundaries of market capitalisation and sectors. By investing across large-cap, mid-cap, and small-cap stocks, it seeks to tap into the full spectrum of opportunities that the market has to offer. This approach allows investors to enjoy the potential growth of companies of all sizes while spreading risks across different segments.

Holistic opportunity utilization

Bajaj Finserv Flexi Cap Fund takes a holistic approach to seize investment opportunities rather than getting swayed by market trends and noise. The fund managers carefully analyze megatrends and growth potential often overlooked by others. This ability to ignore short-term fluctuations and focus on long-term value can be a significant advantage in today's dynamic market.

Smart resource allocation

This fund adopts a dynamic approach to resource allocation based on targeted trends. By allocating resources to sectors and companies showing growth potential, the fund aims to potentially optimise returns for its investors over the long term. This active management strategy enhances the prospects of generating alpha and delivering returns over the long term.

Low turnover ratio

High turnover ratios in mutual funds can lead to increased expenses and, ultimately, reduced returns for investors. The Bajaj Finserv Flexi Cap Fund plan offered by Bajaj Finserv Mutual Fund seeks to have a relatively low turnover ratio. This characteristic helps keep costs in check and is indicative of the fund's long-term investment focus.

INQUBE investment philosophy

A unique feature of Bajaj Finserv Flexi Cap Fund is its INQUBE Investment Philosophy. This has three edges:

• Information edge: Achieving market outperformance through superior information collection.
• Quantitative edge: Outperforming the market by processing information more effectively and utilizing quantitative and analytical models for decision-making.
• Behavioural edge: Outperforming the market through improved decision-making by exploiting crowd overreactions and underreactions. The fund also works to mitigate its own behavioural biases and pitfalls for more rational decision-making.

Suitable for which type of investors?

The Bajaj Finserv Flexi Cap Fund is designed to cater to a specific set of investors. This product is suitable for investors who are seeking:

• Wealth creation and capital appreciation over the long term.
• Investment in equity and equity-related instruments across large-cap, mid-cap, and small-cap stocks.
• Long-term investors who can take on very high risk for potentially higher returns.
• Investors looking to diversify their portfolios across different market capitalization.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Conclusion

The Bajaj Finserv Flexi Cap Fund is a smart investment opportunity which offers a flexible investment approach, a diverse portfolio, and a focus on long-term trends. It also seeks to offer a relatively lower turnover ratio than other funds. So, if you're looking to embark on your investment journey with a fund that thinks differently and aims to provide reasonable return potential, the Bajaj Finserv Flexi Cap Fund could be the appropriate choice for you. Remember, investing is about patience, and thus, it’s important to be invested for the long-term for better results. It is always wise to consult a financial advisor for personalised guidance and for aligning the investment strategy with individual financial goals.

FAQs

How to invest in Bajaj Finserv Flexi Cap Fund?

It’s possible to invest in Bajaj Finserv Flexi Cap Fund either online or offline. You can invest in this scheme by meeting distributors or brokers in person. Moreover, you can invest through your Demat and online trading account. You can also go to Bajaj Finserv Asset Management Ltd. investor portal and create an online account to invest in this scheme.

What are the advantages of megatrends investing approach?

Megatrends investing approach in Bajaj Finserv Flexi Cap Fund offers exposure to industries that are poised for growth. It also allows diversification across sectors and geographies and promotes a long-term investment horizon.

Who should invest in Bajaj Finserv Flexi Cap Fund?

This fund is suitable for investors with a very high risk appetite who seek wealth creation and capital appreciation over the long term. It is also an attractive choice for those looking to invest in equity and equity-related instruments across large-cap, mid-cap, and small-cap stocks.

Who manages Bajaj Finserv Flexi Cap Fund?

The Bajaj Finserv Flexi Cap Fund is managed by Nimesh Chandan and Sorbh Gupta (Equity portion) and Siddharth Chaudhary (Debt portion).

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views / opinions or as an 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 purpose 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.