Bajaj Finserv enters equity mutual fund arena with flexi-cap fund

Bajaj Finserv Asset Management has announced the launch of its first equity scheme, the Bajaj Finserv Flexi Cap Fund, an open-ended equity scheme that aims to provide long-term capital appreciation by investing in equity and related instruments across market capitalisation, based on a ‘megatrends’ strategy.

Rather than looking at past performance, the Bajaj Finserv AMC investment team will look at megatrends that can be monetised, have a large scope and long-term impact, stated a release from the company.

It further added that the scheme will focus on targeting future profit pool industries and will have a relatively low turnover ratio. The fund will be benchmarked against S&P BSE 500 TRI. The new fund offer (NFO) opens for subscription on July 24 and closes on August 7. Minimum application amount during NFO will be Rs 500.

Incidentally, Bajaj Finserv Flexi Cap Fund will follow an investment philosophy based on InQuBe—the AMC’s proprietary framework that adds the layer of behavioural finance to the informational and quantitative edges. By doing this, it seeks to eliminate behavioural biases in investment decision making, said the release.

“Flexi Cap as a category is the most flexible amongst the equity scheme offerings and we believe it can become an integral part of investors’ core portfolio, especially those who are looking for long-term investments and value creation,” said Ganesh Mohan, CEO, Bajaj Finserv Asset Management.

“We recognise the scope and need for differentiation in the industry which we are trying to fill through our megatrends investing approach and we believe it has the potential to be a game-changer for this category. Megatrends investing in flexi-cap truly unlocks the power of ‘flexibility’ in this category, making this a smart product for investors,” he added.

The fund provides investors the flexibility to invest in companies of all sizes, from small- to large-caps, and across sectors. This fund is beneficial for those with a long-term investment horizon, and those who look to avoid the complexities associated with asset allocation in different types of funds, stated the release.