Latest news with #SmallCapFund
Time of India
2 days ago
- Business
- Time of India
NFO Update: Bajaj Finserv Mutual Fund launches small cap fund
Bajaj Finserv Mutual Fund has launched Bajaj Finserv Small Cap Fund , an open-ended equity scheme predominantly investing in small cap stocks, that offers quality, growth and value. The fund is open for subscription and will close on July 11. Also Read | Record inflow of over Rs 15,000 crore in May. What is making arbitrage mutual funds gain investors' interest? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Bajaj Finserv Small Cap Fund is designed for investors aiming to build long-term wealth by investing primarily in equity and equity-related instruments of small cap companies, according to a release by the fund house. The recent correction in small caps presents a compelling entry point for long-term investors. Even though over 80% of small-cap companies have posted strong profit growth of 38% and solid return ratios, most of them are still trading 15–45% below their 52-week highs. Live Events This recent market correction has opened up a clear gap between the true value of these companies and their current market prices, said the release. Coupled with structural tailwinds such as the 'Make in India' push, rising formalisation, and digital transformation across sectors, small caps are well-positioned to benefit disproportionately in the next growth cycle, making this an attractive investment opportunity. The equity portion of the fund will be managed by Nimesh Chandan , CIO and Sorbh Gupta, Head - Equity, and the debt portion by Siddharth Chaudhary , Head – Fixed Income. The minimum application amount is Rs 500 (Plus multiples of Re 1), with a minimum additional application of Rs 100 (Plus multiples of Re 1). An exit load of 1% is applicable if the investment is redeemed within six months of the date of the allotment. The fund offers both growth and IDCW (Income Distribution cum Capital Withdrawal) options. 'The launch of the Small Cap Fund reflects our deep conviction in the long-term potential of India's dynamic small-cap universe. Small caps typically exhibit higher volatility than broader indices, underscoring the importance of active management in navigating market fluctuations and identifying quality opportunities,' said Ganesh Mohan , Managing Director, Bajaj Finserv AMC. 'The strategy is built around discovering high-quality companies in the early phases of growth that are positioned to outperform over time. With the recent small cap correction, the NFO is poised to take advantage of this golden opportunity, enabling investors to participate in long term wealth creation as these businesses scale and contribute meaningfully to the economy,' he added. Also Read | JioBlackRock launches mutual fund access on MyJio, calls it a new era of investing Bajaj Finserv Small Cap Fund is well-suited for those looking to benefit from the growth potential of fundamentally strong businesses that are currently trading below their intrinsic value. It also appeals to investors who want to diversify their portfolios by adding small-cap stocks with growth prospects. The fund is benchmarked to the BSE 250 SmallCap Index TRI. 'Our new small cap fund will be a portfolio of quality businesses with scalability that trade below their intrinsic value. Many industries and subsectors are available exclusively in the small cap category. In essence, there are opportunities to pick up leaders in emerging businesses and challengers in others from this small cap space,' said Nimesh Chandan, Chief Investment Officer, Bajaj Finserv AMC. 'The NSE small cap 250 Index is almost flat year on year. However, many companies generated strong profit growth last year. This allows us to invest in those small cap companies at valuations lower than last year after this time correction,' Nimesh Chandan added It goes beyond selecting quality stocks by rigorously filtering out companies with weak governance, inconsistent fundamentals, or financial red flags. This disciplined approach narrows the universe of over 1,100 small-cap stocks to a focused set of high-potential businesses. A key part of the process is our internal forensic and risk-aware analysis, which filters out companies with weak governance or financial red flags. From a universe of around 300-400 small-cap stocks, this disciplined approach narrows the selection to a portfolio of 40– 100 carefully chosen businesses
Fashion Value Chain
2 days ago
- Business
- Fashion Value Chain
Bajaj Finserv Small Cap Fund: Using Quality to Mitigate the Impact of Volatility
Small Cap Funds are known for their potential to generate higher returns in the long run, but they are often sensitive to market volatility. These market movements are often a result of different factors like limited liquidity, changes in market sentiment or others. In this scenario, selecting the suitable small cap company becomes essential to help mitigate the market swings. However, even a quality portfolio can not be immune to short-term market movements. Bajaj Finserv Small Cap Fund: Using Quality To Mitigate Volatility The Bajaj Finserv Small Cap Fund is built on a quality-focused approach that aims to potentially manage volatility. When you invest in companies with sound fundamentals, they are often potentially better equipped to ride out the market uncertainties. This can help you with an entry point into a sector that's building the long-term growth story of India's small cap sector. Why quality matters in small cap investing The small cap segment comprises companies that are in their nascent stages and operate in niche markets. While this offers you investment opportunities, it also comes with its own risks. Many of these businesses can lack scale or financial resilience to withstand economic downturns. Hence, simply chasing short-term growth in the small cap sector may not be suitable. The Bajaj Finserv Small Cap Fund helps mitigate these market risks through prioritising quality companies that have demonstrated stable earnings, consistent capital allocation and a competitive edge in their niche. While these businesses may not perform in the short-term, they have the potential to grow wealth in the longer run. With the quality-first approach, the fund avoids companies that can have poor governance, unstable performance or unsustainable business models. This can allow you to balance your portfolio throughout market volatility even in a segment like the small caps. A framework for navigating volatility While market swings are a part of an investor's journey, but how a fund is strategized to manage this can make a difference. The Bajaj Finserv Small Cap Fund uses a structured investment approach that combines top-down insights and bottom-up stock selection. In times of market downturns, businesses with strong fundamentals can be better placed to manage costs, maintain market share and potentially bounce back faster. With a focus on these companies, the fund seeks to reduce the effect of volatility on your portfolio. Seeking durable growth, not just momentum While many companies can build momentum in their initial stages, not all growth is sustainable. Some companies can show growth in the short-term but falter later. This can happen due to high debt accumulation, poor management practices and other factors. The Bajaj Finserv Small Cap Fund looks for growth which is backed by businesses with strong fundamentals. This means identifying companies that are not only innovative but also resilient. Having said that, the fund continues to be valuation conscious. This means that while quality and growth are important, value is equally important. Hence, it seeks out companies that are priced below their intrinsic value due to temporary factors and selects them to be a part of your portfolio. This is how the fund's philosophy takes all three elements, quality, growth and value, into consideration to build a balanced mutual fund portfolio. Potential long-term advantages In the long run, quality small cap businesses have the potential to become mid cap or large cap leaders. Hence, if you join these companies' journeys in their early stages, you can potentially benefit from long-term wealth creation, provided you remain invested across market cycles. However, this requires you to build discipline and patience to stay invested during periods of market uncertainty. The Bajaj Finserv Small Cap Fund is designed with an investment philosophy that helps in long-term compounding through a disciplined investment process. It is essential to note that the small cap sector is highly sensitive to market fluctuations. These funds may not be suitable for every investor and hence it is important to check your risk appetite and align your investments to your long-term goals. SIP can support long-term participation Another way to mitigate market risks linked to the small cap segment is through a Systematic Investment Plan. When you invest in SIP, it allows you to invest a fixed amount regularly at a pace you are comfortable with. Here, you neither need to time the market nor commit to lump sum. By spreading your investments over time, SIPs can help average out purchase costs through rupee cost averaging. If you are looking to invest in SIP you can also potentially benefit from the power of compounding that can help you potentially gain wealth in the long run. With a long-term investment plan and a willingness to ride out interim volatility you can invest in SIP and explore the small cap space. You can make use of an SIP calculator to decide on the investment amount. How to invest You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. Investments can be made through direct or regular plans. To learn more about the investment process, visit Units will be available at a offer price of Rs. 10 per unit during the NFO period (June 27, 2025 – July 11, 2025). Conclusion With a 3-in1 advantage, the Bajaj Finserv Small Cap Fund aims to build potential wealth in the long-term while effectively managing market movements. While small caps can be more susceptible to market risks, taking a structured and disciplined approach may offer you a suitable option to get small cap exposure. As always, it is advisable to consult with a financial advisor before making any investment decisions, especially in categories with higher market sensitivity. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Time of India
2 days ago
- Business
- Time of India
Top 10 mutual funds to invest in July 2025
Many new and relatively-inexperienced investors always look for top mutual funds to invest in. They ask their friends or colleagues or in some mutual fund forums for top or best schemes while starting their investment journey or while deciding to invest extra money. But most of them are not satisfied with the answers they get from the internet or friends due to different reasons. An online search would mostly take you to some websites with ready-made lists. Most often, the schemes may be shortlisted on the basis of their short-term performance. Sometimes, the schemes from a single category may dominate the list because that category happens to be the flavour of the season. Also Read | Defence sector based MFs rally up to 60% in 3 months. Will the momentum continue? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: Unsold Sofas at Bargain Prices (View Current Prices) Sofas | Search Ads Search Now Undo Friends or colleagues may give you names of schemes they like or they are investing. Again, there is no guarantee the schemes are indeed suitable for you. Some people never proceed beyond collecting names of top funds because a lingering doubt about the veracity of the names always holds them back. No wonder, many investors keep visiting mutual fund forums for validation for years - even after they start investing. Live Events That is why ETMutualFunds decided to put out a list of top 10 mutual fund schemes. We have chosen two schemes from five different equity mutual fund categories - aggressive hybrid, large cap, mid cap, small cap and flexi cap schemes – which we believe should be enough for regular mutual fund investors. There are caveats: read till the end to ensure you are picking up the best scheme for you. Also Read | Confused about investment in stocks, gold & silver? Simplify it with multi-asset mutual funds! List of top 10 schemes: Canara Robeco Bluechip Equity Fund Mirae Asset Large Cap Fund Parag Parikh Flexi Cap Fund HDFC Flexi Cap Fund Axis Midcap Fund Kotak Emerging Equity Fund Axis Small Cap Fund SBI Small Cap Fund SBI Equity Hybrid Fund Mirae Asset Hybrid Equity Fund Here are some pointers you should keep in mind while investing in these schemes. First, find out about each category and whether it is suited to your investment objective and risk profile. Aggressive hybrid funds Aggressive hybrid schemes (or erstwhile balanced schemes or equity-oriented hybrid schemes) are ideal for newcomers to equity mutual funds. These schemes invest in a mix of equity (65-80%) and debt (20-35). Because of this hybrid portfolio they are considered relatively less volatile than pure equity schemes. Aggressive hybrid schemes are the best investment vehicle for very conservative equity investors looking to create long-term wealth without much volatility. Large cap funds Some equity investors want to play safe even while investing in stocks. Large cap schemes are meant for such individuals. These schemes invest in top 100 stocks and they are relatively safer than other pure equity mutual fund schemes. They are also relatively less volatile than mid cap and small cap schemes. In short, you should invest in large cap schemes if you are looking for modest returns with relative stability. Flexi cap funds A regular equity investor (one with a moderate risk appetite) looking to invest in the stock market need not look beyond flexi cap mutual funds (or diversified equity schemes). These schemes invest across market capitalisations and sectors, based on the view of the fund manager. A regular investor can benefit from the uptrend in any of the sectors, categories of stocks by investing in these schemes. Small cap, mid cap funds What about aggressive investors looking to pocket extra returns by taking extra risk? Well, they can bet on mid cap and small cap schemes. Mid cap schemes invest mostly in medium-sized companies and small cap funds invest in smaller companies in terms of market capitalisation. These schemes can be volatile, but they also have the potential to offer superior returns over a long period. You can invest in these mutual fund categories if you have a long-term investment horizon and an appetite for higher risk. Finally, any search starting with the word 'best' or 'top' is unlikely to offer you the best solution. You should always choose a scheme that matches your investment objective, horizon, and risk profile. If you do not understand the basic mutual fund concepts or are totally new to mutual funds and investing, you should always seek the help of a mutual fund advisor. If you are looking for our recommendations in various mutual fund category, see: Best mutual funds to invest Methodology for hybrid funds: 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii) When H <0.5, the series is said to be mean reverting. iii) When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X = Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance i) Equity portion: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} ii) Debt portion: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore Methodology for equity funds: ETMutualFunds has employed the following parameters for shortlisting the equity mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii) When H is less than 0.5, the series is said to be mean reverting. iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} 5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore.
Fashion Value Chain
3 days ago
- Business
- Fashion Value Chain
Who is the Bajaj Finserv Small Cap Fund Suitable For
Small cap funds can be a suitable option for investors with a long-term investment horizon who wish to invest in growing businesses. These funds typically invest in companies that are ranked 251st and beyond on the share market in terms of market capitalization as per SEBI guidelines. Although relatively smaller, these companies can have the potential to scale and tap into emerging markets in the Indian economy. Who should invest in Bajaj Finserv Small Cap Fund While being full of potential, small caps can come with their own set of limitations too. One of the most prominent ones is the risk and the instability attached to them. Small Cap funds are more sensitive to stock market changes compared to their counterparts. Hence, it is essential to devise a strategy that lets you leverage small cap funds while potentially limiting the impact of risks. Here's where the Bajaj Finserv Small Cap Fund comes into the picture, a fund that aims to capture the potential growth of the small cap space with a meticulous research-backed approach. In this article, we will explore the world of small caps space. Investors with a long-term horizon One of the key first decisions you should consider making in the beginning of your mutual fund investing journey, no matter the fund, is your investment horizon. Small cap funds comprise companies that usually take time to scale and deliver. Thus, it makes sense for an investor with a long-term investment horizon to invest in a small cap fund. As it can take a while for your funds to showcase results. When you stay invested for a long time, not only do you allow your portfolio to potentially strengthen through market cycles, but also an opportunity to potentially gain market share. Investors comfortable with market fluctuations The small cap segment is built with companies that are often operating in niche markets this means that the price movements in these funds can be sharper as compared to large and mid cap categories. Another thing to note here is that small cap companies are more susceptible to market fluctuations. Here, investors who have a higher risk appetite and are comfortable riding out market ups and downs may find small cap funds a suitable addition to their portfolio. The Bajaj Finserv Small Cap Fund takes a quality-first approach to mitigate market volatility and selects businesses with strong fundamentals. However, even a quality portfolio can not be immune to short-term market movements. Investors seeking exposure to high-growth opportunities India's economic landscape is creating a plethora of opportunities across sectors. Many of these trends are often led by smaller businesses who are category-leaders in their niche markets. By investing in companies like this, you can become a part of India's growth story. For those who want to diversify their equity allocation into potentially high-growth segments, this fund may serve as one of the components in their broader investment strategy. Investors with a diversified equity portfolio Small cap funds are typically used to enrich existing portfolios in large and mid cap segments. But due to their high volatility, they may not be suitable for a standalone investment. You can consider adding the Bajaj Finserv Small Cap Fund to diversify your portfolio. With a layered approach like this, you can potentially benefit from small cap growth while potentially balancing the overall risk across your portfolio. As with any investment in the equity space, diversification is essential. The aim here is not to offer concentrated exposure but to spread it across styles, sectors and companies. Investors comfortable with active management If you are comfortable with active management in your mutual fund, you can consider Bajaj Finserv Small Cap Fund. The experienced and research-oriented fund management team here uses Bajaj Finserv AMC's propriety framework INQUBE to scan through the sector and identify suitable investment opportunities. To be put simply, an active management portfolio allows your fund to be responsive to changes in the business cycle, sectoral shifts, valuations changes and other factors relevant to the small cap space. Using a step-up approach to invest over time A suitable way to invest in the small cap space is to stagger your investments. One way to do this is through a Systematic Investment Plan. An SIP helps you break down your investments in a way that lets you invest a fixed amount of money at regular intervals. This build investing discipline as well as consistency. With the growing inflation and the changes in the market, an SIP might not be a one-stop solution for your investments. This is when you can consider a Step-up Systematic Investment Plan. In a step-up SIP, you gradually increase your SIP amount with time. Using a step up SIP calculator can help you estimate how this strategy can potentially impact your overall investment value over a period. This approach can work for investors who want to begin with a smaller amount and build their way up. How to invest You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. Investments can be made through direct or regular plans. To learn more about the investment process, visit Units will be available at a offer price of Rs. 10 per unit during the NFO period (June 27, 2025 – July 11, 2025). Conclusion The Bajaj Finserv Small Cap Fund may be suitable for investors looking to diversify into small cap equities with a long-term view, and who are comfortable with periods of volatility in exchange for the potential of higher growth. Its focus on quality, growth, and active stock selection may offer a balanced approach to investing in this segment. Before investing, individuals are encouraged to assess their financial goals, risk profile, and investment horizon. Using tools like a step-up SIP calculator may also help plan contributions more effectively over time. As always, it is advisable to consult with a financial advisor to evaluate whether this fund fits into your broader investment strategy. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Fashion Value Chain
4 days ago
- Business
- Fashion Value Chain
Avoiding Risk vs Preparing for it: How Bajaj Finserv Small Cap Fund Can Help
When it comes to investing in small cap funds, the fear of risk often dissuades investors. However, it is important to consider that taking a more structured approach to investing can help in mitigating market risks. The Bajaj Finserv Small Cap Fund is designed with this philosophy in mind. It comprises strategic insights and disciplined execution to help investors explore more opportunities in the small cap market. Invest in Bajaj Finserv Small Cap Fund NFO Understanding small caps Small cap funds consist of companies that typically rank 251st and beyond in market capitalization as per SEBI's guidelines. These businesses are often in their novice stages, operating in emerging sectors, this means that they have a potential to scale rapidly. While this can come with a higher volatility, it can also potentially create space for long-term value discovery. What differentiates small caps from others is their potential to bounce back from market fluctuations. Hence, through the suitable selection process, small caps can potentially help grow wealth in the long run, making them a viable part of a broader mutual fund portfolio. Risk isn't the enemy It is essential to understand and manage risk when investing in small cap funds instead of fearing it. Unlike large cap companies that can already be priced efficiently in the market, small caps can be mispriced or overlooked presenting an opportunity for a potential entry point into the market. Instead of trying to avoid risks, you can take a structured approach which can help you mitigate market volatility. This includes diversifying across sectors and tracking company fundamentals while being mindful of governance quality. The Bajaj Finserv Small Cap Fund approach The Bajaj Finserv Small Cap Fund has a 3-in-1 advantage of Growth, Quality and Value. The fund's framework seeks out companies that are scalable, fundamentally strong and trading at prices lower than their intrinsic value. The fund is influenced by Bajaj Finserv AMC's proprietary INQUBE philosophy. It is managed by an experienced team that applies both top-down trends and bottom-up stock analysis. It focuses on five key pillars: Quality : Companies with sound fundamentals and consistent performance Growth : Businesses with long-term scalability potential Undervalued opportunities : Stocks that may be temporarily mispriced Leadership : Dominant players in niche or emerging segments Governance: Transparent, well-managed companies with aligned promoter interests By applying these filters, the Bajaj Finserv Small Cap Fund aims to build a balanced portfolio that can help manage risk while capturing growth potential. Planning matters more than timing While timing the market can be a good way to manage your investment, it can be a challenging task to keep up with. A more practical way to do this is to invest through a Systematic Investment Plan, which allows you to allocate funds regularly. This can help you potentially reduce the impact of market volatility through rupee cost averaging and promote consistency and discipline. You can also use tools like an SWP calculator to plan out your exit strategy. Through a Systematic Withdrawal Plan, you can align your redemptions to your life goals and cash flow needs. Conclusion Investing in the small cap sector requires both preparation and perspective. The Bajaj Finserv Small Cap Fund offers a thoughtfully designed approach that brings together an ambition to grow while mitigating market risks. For investors who wish to build a long-term portfolio, small cap can offer a suitable opportunity to explore investments with the suitable strategy in place. How to invest You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. Investments can be made through director regular plans. To learn more about the investment process, visit Units will be available at a offer price of Rs. 10 per unit during the NFO period (June 27, 2025 – July 11, 2025). Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
