Bandhan Nifty Next 50 Index Fund - Direct (G) : NFO Details
Bajaj Finserv Multi Cap Fund - Direct (G): NFO Details
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Last Updated: 29th January 2025 - 05:36 pm
Bajaj Finserv Multi Cap Fund - Direct (G) is an open-ended equity mutual fund that invests across large-cap, mid-cap, and small-cap stocks. Launched by Bajaj Finserv Asset Management, the fund aims to provide long-term capital appreciation by strategically allocating investments across different market capitalizations based on market conditions and growth potential. It offers investors a diversified portfolio, balancing stability from large-cap stocks with growth opportunities from mid and small-cap stocks. The fund is ideal for investors seeking a mix of stability and high-growth potential with a long-term investment horizon.
Details of the NFO: Bajaj Finserv Multi Cap Fund - Direct (G)
NFO Details | Description |
Fund Name | Bajaj Finserv Multi Cap Fund - Direct (G) |
Fund Type | Open Ended |
Category | Equity - Multi Cap |
NFO Open Date | 06-February-2025 |
NFO End Date | 20-February-2025 |
Minimum Investment Amt | ₹500/- and in multiples of ₹1 thereafter |
Entry Load | -Nil- |
Exit Load | For units in excess of 10% of the investment, 1% will be charged for redemption within 6 months |
Fund Manager | Mr. Nimesh Chandan and Mr. Sorbh Gupta |
Benchmark | Nifty 500 Multicap 50:25:25 TRI |
Investment Objective and Strategy
Objective:
The objective of the Scheme is to generate long term capital appreciation by investing in equity and equity related securities of large cap, mid cap and small cap companies.
However, there is no assurance that the investment objective of the Scheme will be achieved.
Investment Strategy:
The Bajaj Finserv Multi Cap Fund - Direct (G) follows a flexible and dynamic investment strategy aimed at achieving long-term capital appreciation by investing across large-cap, mid-cap, and small-cap stocks. The fund ensures a balanced allocation by maintaining at least 25% exposure to each of these market segments, with the remaining 25% allocated flexibly based on market conditions and emerging opportunities. This approach allows it to capture stability from large-cap stocks, growth potential from mid-caps, and high-return opportunities from small-caps.
The investment strategy relies on active portfolio management, using a research-driven, bottom-up stock-picking approach to identify high-quality businesses with strong fundamentals. Additionally, a top-down macroeconomic analysis helps pinpoint sectoral trends and emerging themes that can drive long-term growth. The fund prioritizes companies with strong earnings potential, sustainable competitive advantages, and efficient capital allocation. Businesses with robust financials, competent management teams, and scalable models form the core of the portfolio.
Sectoral and thematic allocations are dynamically adjusted based on macroeconomic conditions, industry cycles, and long-term structural trends. This diversified approach reduces concentration risk and enhances the resilience of the portfolio. By investing across different market capitalizations, the fund aims to optimize risk-adjusted returns while mitigating volatility over the long term. The allocation strategy is continuously reviewed to adapt to changing market dynamics and investor objectives.
Why Invest in Bajaj Finserv Multi Cap Fund - Direct (G)?
The Bajaj Finserv Multi Cap Fund - Direct (G) is well-suited for investors looking for diversified equity exposure with a long-term perspective. It is ideal for those with a moderate to high-risk appetite who seek a mix of stability from large-caps, growth from mid-caps, and high-return potential from small-caps. This actively managed fund is designed to navigate market cycles effectively while striving for consistent long-term growth.
Strength and Risks – Bajaj Finserv Multi Cap Fund - Direct (G)
Strengths:
One of its key strengths is broad market participation, as it invests across large-cap, mid-cap, and small-cap stocks. This ensures a balanced approach, combining stability from large-cap stocks, growth potential from mid-caps, and high-return opportunities from small-caps. The mandatory 25% allocation to each segment, with the flexibility to allocate the remaining portion dynamically, helps optimize risk-adjusted returns.
Another strength is its active portfolio management strategy, which employs both bottom-up stock selection and top-down macroeconomic analysis. This dual approach allows the fund to identify high-quality businesses with strong financials, sustainable competitive advantages, and long-term growth potential. By focusing on companies with robust earnings, efficient capital allocation, and strong management teams, the fund aims to generate superior risk-adjusted returns.
The dynamic asset allocation approach enhances the fund’s ability to navigate different market conditions effectively. It adapts to economic cycles and sectoral trends, ensuring exposure to high-growth opportunities while managing downside risks. The fund's ability to adjust allocations based on emerging market opportunities provides an edge in capturing wealth creation trends.
Additionally, sectoral and thematic diversification helps reduce concentration risk and provides resilience against market fluctuations. The fund strategically invests across various industries and themes, ensuring that the portfolio remains well-balanced and aligned with evolving market trends.
Risks:
One of the primary risks is market volatility, as the fund invests in equities across large-cap, mid-cap, and small-cap segments. While large-cap stocks provide stability, mid and small-cap stocks are more volatile and can experience sharp price fluctuations, impacting the overall fund performance, especially during market downturns.
Another key risk is liquidity risk, particularly with small-cap stocks. Smaller companies may have lower trading volumes, making it difficult to exit positions during adverse market conditions, which could lead to price distortions or forced selling at lower valuations.
Sectoral and economic risks also play a role, as the fund dynamically adjusts its allocation based on market conditions. If certain sectors or themes underperform due to economic slowdowns, regulatory changes, or industry disruptions, the fund's returns may be negatively affected. Additionally, macroeconomic factors such as interest rate changes, inflation, and geopolitical events can impact stock market performance and overall portfolio returns.
The fund is actively managed, which introduces fund manager risk. The success of the strategy depends on the fund manager's ability to make the right stock picks and asset allocation decisions. If the investment strategy does not align well with prevailing market conditions, the fund may underperform its benchmark or peer funds.
Lastly, risk of style drift exists if the fund moves away from its intended allocation strategy. While it is required to maintain a minimum of 25% in each market capitalization segment, the flexible allocation of the remaining portion means exposure levels can change. If the fund tilts too heavily toward mid or small-cap stocks during market turbulence, investors could face increased downside risk.
Investors should be aware of its risks and ensure it aligns with their risk tolerance and investment horizon.
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