NFO Alert: Bajaj Finserv Mutual Fund launches Multi-Cap Fund
Bajaj Finserv Mutual Fund has unveiled a multi-cap fund that is an open-ended equity scheme and will be aligned with investments across large, mid, and small-cap stocks. The NFO for the said scheme would be open for subscription from February 6, 2025, while closing on February 20, 2025. Within five working days from the date of allotment, the scheme will be available for continuous sale and repurchase.
Objective and Benchmark
The main focus of this strategy is to accrue long-term capital gain through an investment in the equity and equity-related securities of various market-cap companies. This fund will be benchmarked to the Nifty 500 Multicap 50:25:25 TRI index with a diversified strategy in stock selection. The funds will be managed actively by Nimesh Chandan, Sorbh Gupta, and Siddharth Chaudhary.
Exit Load and Investment Details
The exit load for this scheme is structured in such a way that it induces long-term investment. If the units are redeemed or switched out within six months from the date of allotment, then there will be no exit load on up to 10% of the units held, but on the rest of the 90% units, there will be an exit load of 1% of the applicable NAV. However, if units are redeemed or switched out after six months, no exit load will be levied.
The minimum investment for a lump sum investment in this scheme is Rs.500, and additional investments can be made in multiples of Rs.1 thereafter. For Systematic Investment Plans (SIP), investors can begin with Rs.500 or more, with a minimum of six installments.
The asset allocation strategy of the fund includes:
- 75-100% allocation in equity and equity-related securities across large-cap, mid-cap, and small-cap companies.
- 0-25% allocation in debt and money market instruments, as well as units of mutual fund schemes.
- 0-10% allocation in units issued by REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts).
The investment strategy of the fund is aligned with a contrarian approach, guided by the INQUBE investment philosophy. This strategy seeks to pick fundamentally strong companies that appear to be attractively valued based on a well-structured framework. A contrarian approach helps to capitalize on market inefficiencies as in instances of market overreaction to bad news and underreaction to good news.
Who Should Invest?
This multi cap fund is apt for investors looking for long-term wealth creation through investing in a diversified portfolio of equity and equity-related instruments. The investment philosophy of this scheme will be found to resonate with those who look for opportunities in companies that have strong fundamentals and attractive valuations.
With a well-chalked-out investment strategy and wide market coverage across various capitalizations, the multi cap fund provides a well-balanced diversified investment opportunity to those looking at long-term growth of wealth.
