Pune: Bajaj Finserv AMC opens the gates to investors seeking long-term wealth creation with the launch of the Bajaj Finserv Large and Mid Cap Fund. This open-ended equity scheme is designed to capture the essence of strategic investing, emphasizing stock selection through moat investing. Let’s look at the NFO details of this scheme and understand the key features that make it an intriguing opportunity for investors.
Bajaj Finserv Large and Mid Cap Fund
NFO details of Bajaj Finserv Large and Mid Cap Fund:
- NFO period: 6thFeb 2024 to 20th Feb 2024
- Type of scheme: An open-ended equity scheme investing in both large-cap and mid-cap stocks.
- Plans: Bajaj Finserv Large and Mid Cap Fund Direct Plan
- Bajaj Finserv Large and Mid Cap Fund Regular Plan
- Minimum Application Amount: Rs. 500 (Plus multiples of Re.1)
- Minimum Additional Application: Rs. 100 (Plus multiples of Re.1)
- Entry Load: Not Applicable
Exit Load: 10% of units up to six months from allotment- Nil
Above 10% of units within six months from the allotment – 1% of applicable NAV
More than six months from the allotment – Nil - Benchmark: Nifty Large Midcap 250 TRI
Key features of Bajaj Finserv Large and Mid Cap Fund
Stock selection based on moat investing:
At the heart of the Bajaj Finserv Large and Mid Cap Fund lies a distinctive approach to stock selection – Moat Investing. This strategic approach involves identifying companies with economic moats, or sustainable competitive advantages. The fund manager meticulously evaluates businesses based on qualitative attributes such as high pricing power, segment leadership, and management quality with a focus on innovation.
Companies with economic moats are similar to fortresses, shielding themselves from the onslaught of competition. By selecting stocks through the lens of moat investing, the fund aims to build a portfolio of companies with enduring competitive strengths, offering investors a potential option for sustained growth and resilience in the face of market dynamics.
Diversified portfolio:
Diversification is a fundamental principle in investment strategy, and the Bajaj Finserv Large and Mid Cap Fund takes this concept seriously. The fund is structured to navigate both large and mid-cap segments, offering investors exposure to a wide spectrum of companies. This diversified approach is intended to strike a balance between relative stability and growth opportunities.
The rationale behind a diversified portfolio is clear – it mitigates risk by spreading investments across different sectors and market capitalizations. Investors in this fund can potentially benefit from a mix of established large-cap companies and the growth potential of dynamic mid-cap entities, providing a well-rounded investment experience.
Growth oriented:
The Bajaj Finserv Large and Mid Cap Fund is positioned as a growth-oriented investment avenue. By focusing on both large and mid-cap stocks, the fund aligns with the potential for higher growth inherent in the mid-cap segment, while also optimizing the relative stability associated with established large-cap companies.
The growth-oriented nature of the fund is underscored by its strategic stock selection process. Companies with economic moats are often characterized by their ability to adapt, innovate, and capture market share, factors that contribute to sustained growth over the long term. Investors seeking capital appreciation and long-term wealth growth may find the growth-oriented approach of this fund aligning with their financial objectives.
High active share:
The Bajaj Finserv Large and Mid Cap Fund distinguishes itself with a high active share, signifying a departure from index-hugging strategies. Active share measures the percentage of a portfolio’s holdings that differ from the benchmark index. A high active share indicates a fund manager’s willingness to deviate from the benchmark, making bold and independent investment decisions.
In practical terms, a high active share suggests that the fund is actively seeking opportunities rather than merely mirroring the market. This approach can lead to potential outperformance, as the fund manager’s convictions and insights drive the portfolio’s composition, allowing it to react dynamically to market conditions.
Low turnover portfolio
One notable characteristic of the Bajaj Finserv Large and Mid Cap Fund is its commitment to maintaining a low turnover portfolio. Portfolio turnover measures the frequency with which assets within the fund are bought or sold. A low turnover indicates a more buy-and-hold approach, minimizing transaction costs and potential tax implications for investors.
A low turnover portfolio is aligned with the fund’s focus on long-term value creation. It reflects a deliberate and measured approach to stock selection, where the fund manager seeks to identify companies with enduring competitive advantages, intending to hold these positions over extended periods to capture their growth potential.
In conclusion, the Bajaj Finserv Large and Mid Cap Fund opens up a suitable opportunity for investors through its NFO. With a strategic emphasis on moat investing, a diversified portfolio, growth-oriented approach, high active share, and a commitment to a low turnover portfolio, this fund positions itself as a dynamic and thoughtful choice for those seeking to navigate the equity markets with a focus on enduring value and growth. You can consider investing in this scheme by visiting the official website of Bajaj Finserv AMC.
As always, investors are encouraged to thoroughly understand the fund’s objectives and align them with their own financial goals before making investment decisions.
About Bajaj Finserv Asset Management Ltd:
Bajaj Finserv Asset Management Limited, a wholly-owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
