Bajaj Finserv Asset Management launched its first equity scheme, the Bajaj Finserv Flexi Cap Fund, an open-ended equity scheme which aims to invest in equity and equity-related instruments across market capitalization for long-term capital appreciation.
The new fund offer (NFO) runs from July 24 to August 7, 2023. The minimum subscription amount during the NFO is Rs 500, and after that, in multiple of Re. 1. The fund house said the approach will be long-term, multi-thematic, multi-cap, multi-sectoral, and growth-oriented.
Investors can hugely benefit from the “strongest megatrends” across sectors, themes, market capitalisation and geographies rather than looking at past performance, it said, highlighting the scheme’s salient features in a press release. The AMC said will use “tools and processes from all the sources of alpha—informational, quantitative, behavioural edges.”
Commenting on the product, Ganesh Mohan, CEO of Bajaj Finserv Asset Management, said, “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. Megatrends investing in Flexi Cap unlocks the power of ‘flexibility’ in this category, making this a smart product for investors.”
Mohan added, “India continues to be one of the most favourable investment destinations. This provides an opportunity for investors who could benefit from the growth of its diverse sectors. Our Flexi Cap Fund is powered by a megatrend strategy which means the fund manager would invest with an aim to come into a trend at the right time and exit at the right time.”
The scheme will target future profit pool industries, it will have a relatively low turnover ratio, and look at megatrends that are “monetisable”, with a “large scope and long-term impact”.
Nimesh Chandan, the chief information officer (CIO) of Bajaj Finserv Asset Management, said, “Spotting megatrends paves the way for long-term buy-and-hold investing opportunities, a key differentiator between cyclical, thematic and factor investing. Our portfolio will be long-term, multi-thematic, multi-cap, multi-sector and growth-oriented.”
Chandan stressed that “Equity returns tend to correlate with profit stream dynamics. Megatrends investing helps in identifying future profit movements and positioning the portfolio appropriately. This investing approach combines both top-down and bottom-up analysis. The megatrends filter acts as a top-down layer, while bottom-up analysis helps in identifying businesses that are suited to benefit from those trends.”
Salient Features
The fund will be benchmarked against S&P BSE 500 TRI.
The scheme will follow the “InQuBe” investment philosophy, a proprietary framework that adds a “layer of behavioural finance to the informational and quantitative edges”.
This, according to the AMC, eliminates behavioural biases in investment decision-making.
Furthermore, the stock selection can be based on multiple parameters such as the company fundamentals, valuations, and megatrends across technological, regulatory, economic, nature, demographic and social changes. Also, the fund provides investors with the flexibility to invest in companies of all sizes, from small-caps to large-caps, across sectors.
The scheme will be managed by CIO Chandan, senior fund manager Sorbh Gupta (Equity) and Siddharth Chaudhary (Debt). The AMC said this fund is beneficial for those with a long-term investment horizon and who want to avoid the complexities of asset allocation in different types of funds.
