3-in-1 fund
Seeks to invest in quality stocks that are growth-oriented and trading at favourable valuations.
Read MoreBAJAJ FINSERV ASSET MANAGEMENT LIMITED.
BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
Quality, value and growth
High return potential
The objective of the Scheme is to generate long term capital appreciation by investing in equity and equity related securities of small cap companies.
However, there is no assurance that the investment objective of the Scheme will be achieved.
To tap into the growth potential of small caps while mitigating risk, the investment strategy of the Bajaj Finserv Small Cap Fund rests on five pillars, as follows:
3-in-1 fund
Seeks to invest in quality stocks that are growth-oriented and trading at favourable valuations.
Read MoreStrong fundamentals
Seeks out companies with consistent earnings, sustainable competitive advantages, strong management and robust business models.
Read MoreRisk management
Aims to find potential opportunity in volatility while mitigating risk through forensic research and analysis.
Read MoreInvestors who:
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.
| Instruments | Indicative allocations (% of total assets) | |
|---|---|---|
| Minimum | Maximum | |
| Equities & Equity related securities of small cap companies | 65% | 100% |
| Equities & Equity related securities of other than small cap companies, equity & equity related securities of foreign companies | 0% | 35% |
| Debt and Money Market Instruments* | 0% | 35% |
| Units issued by REITs and InvITs | 0% | 10% |
*Debt instruments shall be deemed to include securitized debts (excluding foreign securitized debt). Money market instruments will include commercial papers, commercial bills, Triparty REPO, Reverse Repo and equivalent and any other like instruments as specified by SEBI and Reserve Bank of India from time to time.
Bajaj Finserv Small Cap Fund
An open ended equity scheme predominantly investing in small cap stocks
Rs. 100/- and in multiples of Re. 1/- thereafter.
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:
If units redeemed/switched out within 6 months from allotment date:
If units redeemed/switched out after 6 months from allotment date, no exit load is payable.
to view Total Expense Ratio
Small cap funds are equity mutual funds that invest chiefly in stocks of small cap companies. These are companies that are listed 251 and beyond (in terms of market capitalization) on recognized stock exchanges. Typically, small cap companies tend to offer higher long-term growth potential than mid or large caps but also come with significant volatility.
When you invest in the Bajaj Finserv Small Cap Fund, you can choose between two types of plans: Direct Plan and Regular Plan. Both follow the same investment strategy, but the investment route and cost will differ.
| Aspect | Regular Plan | Direct Plan |
|---|---|---|
| How you invest | Through a registered mutual fund distributor | Directly with the asset management company |
| Assistance and guidance | Distributor assists with fund selection, investment amount, duration, and goal alignment | No distributor support; investor manages investments independently |
| Transaction support | Distributor helps with application and ongoing transactions | Investor handles all transactions |
| Expense ratio | Slightly higher due to distributor commissions | Relatively lower as there are no commission costs |
| Impact on returns | May be slightly lower due to higher expenses | May result in slightly higher net returns over time |
You can invest in the Bajaj Finserv Small Cap Fund either online or offline, directly with Bajaj Finserv AMC or through a registered mutual fund distributor. If you invest online through the Bajaj Finserv AMC website, follow these steps:
To invest offline, you will need to fill out an application form and submit it independently or through a distributor at any official point of contact (OPAT) of the AMC.
The Bajaj Finserv Small Cap Fund is taxed as an equity mutual fund. The following tax rates apply:
| ELSS Tax Saver Fund | Healthcare Fund | Multi Cap Fund |
|---|---|---|
| Large and Mid Cap Fund | Flexi Cap Fund | Large Cap Fund |
| Consumption Fund | Banking and Financial Services Fund |
| Equity Funds | Debt Funds | Hybrid Funds | Index Funds |
|---|---|---|---|
| Exchange Traded Fund Funds | Savings+ | Mutual Funds |
Small cap funds are equity mutual funds that primarily invest in small cap companies, defined by SEBI as companies ranked 251st and beyond based on full market capitalisation. These funds are required to invest at least 65% of their assets in small cap stocks and may offer potential long-term growth opportunities along with relatively higher market volatility.
Small cap funds invest in smaller companies and can experience higher market volatility compared to large cap or mid cap funds. The performance of these funds may be influenced by market conditions, economic trends, and changes in investor sentiment.
Small cap funds aim to generate potential long-term capital appreciation by investing in emerging businesses with growth potential. Since these funds invest in equities, returns are market-linked and can vary depending on market conditions, economic trends, and portfolio strategy. Returns are not guaranteed.
Small cap funds may be suitable for investors with a higher risk appetite and a long-term investment horizon. They may also suit investors looking to diversify their portfolio with exposure to smaller companies and emerging businesses.
Small cap funds may be considered by beginners who understand equity market risks and are comfortable with market volatility. Since small cap funds can experience sharp short-term fluctuations, investors should consider their financial goals, investment horizon, and risk tolerance before investing.
Small cap funds are generally considered more suitable for long-term investing. An investment horizon of five years or longer may help investors navigate short-term market volatility and participate in the potential long-term growth opportunities of small cap companies.
Small cap funds may be considered as part of a long-term retirement portfolio for investors seeking potential capital appreciation. However, because small cap funds can be volatile, allocation decisions should be aligned with an investor’s age, financial goals, and risk tolerance.
Investing through SIPs allows investors to invest regularly over time instead of making a one-time investment. In small cap funds, SIPs may help average investment costs across different market levels and reduce the impact of short-term market volatility.
Investors may consider small cap mutual funds when they have a long-term investment horizon and are comfortable with higher market volatility. These funds may suit investors seeking exposure to emerging businesses that could benefit from long-term economic and business growth trends.
Investors may evaluate small cap funds based on factors such as investment strategy, portfolio quality, risk management approach, fund management experience, and investment horizon. It may also help to assess whether the fund aligns with individual financial goals and risk appetite.
Small cap funds invest in relatively smaller companies and may offer higher growth potential along with higher volatility. Mid cap funds invest in relatively more established companies and may offer a balance between growth potential and risk. The choice may depend on an investor’s financial goals, investment horizon, and comfort with market fluctuations.
Large cap funds invest in established companies that may offer relatively greater stability during market fluctuations, while small cap funds invest in emerging companies that may experience higher volatility. Investors may choose between them based on their risk appetite, financial goals, and investment horizon.
Bajaj Finserv Small Cap Fund follows a research-driven 3-in-1 investment approach focused on quality, growth, and value while investing in small cap companies. The fund looks for businesses with consistent earnings, sustainable competitive advantages, long-term growth potential, and governance-focused management teams, while also identifying fundamentally strong companies that may be trading below their intrinsic value due to temporary market factors. Its investment strategy also emphasises emerging category leaders and niche businesses with growing market presence, supported by active research and ongoing risk monitoring.
Bajaj Finserv Small Cap Fund follows a research-backed investment approach that focuses on company fundamentals, governance practices, business sustainability, and valuation discipline. The fund also actively monitors portfolio risks while investing in small cap opportunities across sectors.
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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.
