BAJAJ FINSERV ASSET MANAGEMENT LIMITED.

Megatrends

3-in-1

Bajaj Finserv

Small Cap Fund

Invest in Quality, Growth and Value

An open ended equity scheme predominantly investing in small cap stocks.

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MEGATRENDS INVESTING

Bajaj Finserv

Flexi Cap Fund

Tap into the Trends of the Future

An open ended equity scheme investing across large cap, mid cap, small cap stocks.

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QUALITY OVER QUANTITY

Bajaj Finserv

Large Cap Fund

Invest in a Concentrated Strategy

An open ended equity scheme predominantly investing in large cap stocks.

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MOAT INVESTING

Bajaj Finserv

Large and Mid Cap Fund

Invest with a Moat Strategy

An open ended equity scheme investing in both large cap and mid cap stocks

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LONG-TERM GROWTH

Bajaj Finserv

Mutual Fund SIP

Sabse Intelligent Plan

Start with ₹500 per month & let compounding do the work

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MEGATRENDS INVESTING

Bajaj Finserv

Banking And Financial Services

Invest in BFSI Megatrends

An open ended equity scheme investing in Banking and Financial Services sector

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MEGATRENDS INVESTING

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Consumption Fund

Invest in Consumption Megatrends

An open ended equity scheme following consumption theme

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NEW

Bajaj Finserv

Low Duration Fund

For Your Short-Term Needs

An open ended debt scheme

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Across many Indian cities today, metro lines rise above traffic, expressways shorten travel distances, and cranes reshape skylines. These visible changes reflect a broader transformation in how the country builds, moves, and lives. Alongside services and consumption, infrastructure creation is also a key lever in India’s growth journey. Kilometres of new roads, additional power generation capacity, and expanding housing supply indicate the country’s development priorities. Urbanisation is contributing to this shift, as a rising share of the population moves from rural areas to cities in search for economic opportunities. Source: Government of India, Ministry of Finance. Economic Survey 2023–24. Table Of Contents: ● The foundation beneath progress ● Growing urbanisation ● Long-term shifts and megatrends ● The challenges ● Impact on other sectors ● A nation in motion The foundation beneath progress Infrastructure is a key aspect of development. Better roads, railways, ports, and power networks may support productivity over time. Such investment may support economic activity across sectors. Demand may increase for cement, steel, machinery, and construction services, while employment generation may support consumption. Over the long term, efficient infrastructure may help reduce logistics costs and attract additional private investment. These outcomes are not guaranteed but represent potential benefits as connectivity improves. Infrastructure development may also contribute to broader regional growth. A well-built highway can transform a small manufacturing town into an export cluster. A rural solar park can light up industrial sheds hundreds of kilometres away. Better highways, airports, and transmission lines may help smaller towns participate more actively in manufacturing and services. Read Also: Transform Your Future with Infrastructure Mutual Funds Growing urbanisation India’s urban population share is expected to increase in the coming decades and by 2035, more than 40% of the country’s population will live in urban areas (Source: UN World Cities Report 2022). Cities may enable productivity improvements when people and businesses cluster together, share services, and access larger markets. However, cities need strong infrastructure to handle this transition. Congestion, water scarcity and limited housing supply may reduce the benefits of urban expansion. Effective planning, sustainable mobility systems and affordable housing are increasingly important for supporting urban living conditions. Long-term shifts and megatrends Infrastructure development and urban expansion can also be viewed through the lens of broader megatrends. Megatrends refer to large, long-term structural shifts—such as demographic changes, technological progress, sustainability transitions and evolving consumer behaviour—that may influence economies and societies over multiple decades. These trends do not guarantee outcomes, but they may provide a framework for understanding how areas like connectivity, energy transition and urban planning may evolve over time. Read Also: The Convergence Effect: Overlapping Megatrends in India The challenges Logistics and connectivity Historically, the movement of goods within India faced bottlenecks such as delays at state borders and uneven road quality. Reforms in the GST tax structure and measures such as e-way bills, along with initiatives like PM Gati Shakti and Dedicated Freight Corridors, aim to improve logistics efficiency. The intention is to reduce transport time and support domestic manufacturing competitiveness. Reliable power and clean energy A growing economy requires dependable power. According to the International Energy Agency and India’s Ministry of New and Renewable Energy, India is now among the world’s leading renewable energy markets, with solar and wind capacity expanding steadily over the past decade. Efforts in grid integration, energy storage and emerging areas such as green hydrogen may support long-term energy transition goals. A reliable, clean power base not only meets climate goals but may also keep manufacturing competitive. Housing as infrastructure Affordable housing initiatives, including PMAY (Urban), may support access to formal housing. Housing construction may increase demand for building materials, home finance and related goods. The broader economic effects depend on local planning, household incomes and credit availability. Planning at scale: The policy push The National Infrastructure Pipeline provides a multi-sector roadmap for long-term development across transport, energy, urban and digital infrastructure. A coordinated approach may improve project visibility for researchers, planners, and private participants. PM Gati Shakti aims to integrate planning across ministries to align transport networks with industrial and logistics hubs. The objective is to improve the movement of goods and people by reducing delays and infrastructure duplication. Read Also: Digital Infrastructure in India: Driving Financial Inclusion Impact on other sectors Long-term infrastructure development may generate potential opportunities across various sectors, though each involves market and regulatory risks: ● Capital goods and engineering: Demand for machinery and equipment may rise with higher public spending. ● Cement, steel, and materials: Larger project pipelines may support consumption of core inputs. ● Logistics and warehousing: Growth of organised logistics may continue as connectivity improves. ● Energy transition: Renewables and energy-efficient technologies represent a developing area with policy-dependent outcomes. ● Housing finance and urban ancillaries: Home loans and products linked to urban housing may see demand linked to construction cycles. ● InvITs and REITs: These investment structures allow participation in operating assets such as power transmission and commercial properties, but their performance depends on asset utilisation, interest rates and market conditions. Please note that the reference to any industry/sector/stock is provided for illustrative purposes only. This should not be construed as a research report or a recommendation to buy or sell any security or sector. A nation in motion India’s future will not be built overnight, but it is being built every night. Infrastructure and urbanisation are shaping India’s future gradually. Improved connectivity and better-planned cities may expand access to education, markets and employment for more citizens over time. While outcomes depend on policy execution and economic conditions, these long-term themes remain important to track from both a development and investment research perspective. At Bajaj Finserv Asset Management Ltd, we aim to harness the power of megatrends by offering investors access to themes shaping the world’s future — from clean energy to technology, innovation, demographic shifts and more. Many of our funds follow a megatrends investment approach to help you participate in these long-term shifts, with a focus on growth potential and diversification. Build your future-focussed portfolio with Bajaj Finserv AMC.

How Infrastructure And Urbanisation Are Powering India’S Growth

Across many Indian cities today, metro lines rise above traffic,

The Healthier Plate

The Healthier Plate: How Nutrition And Wellness Are Shaping India’S Next Consumption Megatrend

For many years, India’s consumption story focused on material aspirations

Five Major Forces Shaping India’s Healthcare Megatrends

The Five Major Forces Shaping India’s Healthcare Megatrends

With significant demographic shifts, rising incomes, progressive policy interventions, and

Quick Commerce And The 15-Minute City

Quick Commerce And The 15-Minute City: Investing In The Future Of Urban Convenience

Across Indian cities today, everyday consumption patterns are changing. In

Sustainability Vs Speed

Sustainability Vs Speed: The Next Evolution Of Quick Commerce

Over the last few years, quick commerce has redefined the

Sectors Spanning Consumption Megatrends

The Sectors Spanning Consumption Megatrends

India’s everyday consumption is changing in ways many of us

From Screen Time to Green Time

From Screen Time To Green Time: The Wellness + Sustainability Crossover

Recently, at a bustling farmers’ market, a young couple stood

Why Your Closet

How Your Closet May Be Telling The Story Of A Megatrend

Walk into your closet and take a look around. The

The Megatrends Shaping Your 9 to 5

From AI to Hybrid Work: The Megatrends Shaping Your 9-To-5

You may not realise it, but when you check your

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Our Investment Philosophy

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.

Information Edge

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?

Quantitative Edge

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.

Behavioural Edge

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.