Bajaj Finserv Healthcare Fund - Direct (G) – NFO Details

The Bajaj Finserv Healthcare Fund - Direct (G) is a sectoral equity fund aiming to provide long term capital appreciation by investing predominantly in equity and equity related securities of pharma, healthcare, and allied companies. This open-ended fund is set to open for subscription on December 6, 2024, and close on December 20, 2024. It requires a minimum investment of ₹500 and offers both growth and IDCW plans. The fund is actively managed and benchmarks its performance against the BSE Healthcare TRI. With a focus on healthcare, the Bajaj Finserv Healthcare Fund - Direct (G) offers exposure to innovative, growth driven companies in pharma, wellness, and healthcare sectors, making it a suitable choice for investors seeking to capitalize on long term growth potential in this domain.  

Details of the NFO: Bajaj Finserv Healthcare Fund - Direct (G)

Objectives of the Bajaj Finserv Healthcare Fund - Direct (G)

The primary objective of the Bajaj Finserv Healthcare Fund - Direct (G) is to generate long term wealth by investing predominantly in equity and equity related securities of companies within the pharma, healthcare, and wellness industries. 

The Bajaj Finserv Healthcare Fund - Direct (G) aims to capture opportunities across the value chain, including pharmaceuticals, diagnostics, hospitals, wellness products, and healthcare related technology. 
It seeks to deliver substantial returns by identifying and investing in businesses that demonstrate innovation, growth potential, and strategic importance in the healthcare domain. 

Additionally, the fund aims to take advantage of emerging trends in the wellness sector, such as nutraceuticals and personal healthcare, providing a diversified exposure within the broader healthcare ecosystem.  

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Investment Strategy of the Bajaj Finserv Healthcare Fund - Direct (G)

The Bajaj Finserv Healthcare Fund - Direct (G) adopts an active investment strategy, allocating 80100% of its assets to equities and equity related instruments within the pharma, healthcare, and allied sectors. The fund is market capitalization agnostic and focuses on companies involved in research and development, manufacturing, diagnostics, healthcare services, and distribution of pharmaceutical products. Additionally, it may invest in wellness related businesses, including nutraceuticals and over-the-counter medicines. Up to 20% of the fund’s assets may be allocated to equities outside the healthcare sector, and up to 10% may be allocated to REITs and InvITs. The Bajaj Finserv Healthcare Fund - Direct (G) may use derivatives for hedging and portfolio rebalancing, while also exploring overseas investments within SEBI prescribed limits.  

Risks Associated with the Bajaj Finserv Healthcare Fund - Direct (G)

Investing in the Bajaj Finserv Healthcare Fund - Direct (G) comes with sectoral concentration risk, as the portfolio is heavily tilted towards pharma, healthcare, and wellness sectors. The fund is also subject to market volatility, regulatory changes, and geopolitical developments that may impact healthcare stocks. Currency risks are associated with overseas investments, and the use of derivatives may amplify losses in volatile market conditions. Other risks include liquidity risk, credit risk on debt investments, and macroeconomic factors like interest rate changes or inflation, which may affect fund performance. Furthermore, the fund’s focused strategy may result in underperformance if the healthcare sector faces prolonged downturns.  

What Kind of Investor Should Invest in Bajaj Finserv Healthcare Fund - Direct (G)?

The Bajaj Finserv Healthcare Fund - Direct (G) is ideal for investors with a high risk appetite and a long term investment horizon who wish to capitalize on the growth potential of the healthcare and wellness sectors. It is well-suited for individuals seeking sectoral exposure to pharma and allied industries and who believe in the transformative growth of healthcare. Investors looking to diversify their portfolios with sectoral funds or aiming for thematic exposure in innovative and high growth healthcare companies will find this fund appropriate. However, it is not suitable for risk averse investors or those looking for short-term gains, as the sector's cyclical nature can lead to higher volatility. 

Risk Mitigation Strategy for the Bajaj Finserv Healthcare Fund - Direct (G)

The Bajaj Finserv Healthcare Fund - Direct (G) employs several risk mitigation strategies to protect investors’ interests. By diversifying investments within the healthcare value chain—spanning pharmaceuticals, diagnostics, wellness products, and healthcare services—the fund reduces sectoral concentration risk. The inclusion of up to 20% allocation to no healthcare equities and fixed income securities provides additional diversification. The fund actively uses derivatives for hedging and portfolio balancing to manage market volatility effectively. Additionally, investments are backed by rigorous research and fundamental analysis to ensure quality stock selection. Overseas investments are capped within SEBI limits to mitigate currency and geopolitical risks, while exposure to debt instruments with special features is limited to high-quality issuers to safeguard returns.