Introducing Bajaj Finserv Asset Management Limited presents its latest investment solution in mutual funds named Bajaj Finserv Large Cap Fund that brings in a new dimension to large-cap funds that are strategically and actively managed with high conviction. This New Fund Offer (NFO) is yet to be launched for subscription and shall remain open for acceptance from 29th July 2024 to 12th August 2024. Making use of 25-30 stocks of carefully calibrated portfolios, this fund seeks to achieve favorable risk-adjusted return over long-term investing and with a high active share.
Table of Contents
Understanding the Market Timing: To address these issues let us examine whether Large Caps are a good investment bet.
Amidst the shift toward large-cap stocks, Bajaj Finserv Asset Management Limited has noted that these stocks are currently trading at a reasonable valuation that other large-bracket investors consider reasonable, even trading at the average of the historical Price to Earnings (P/E) of 23 for the trailing twelve months. undefined Based on the provided fundamental data, one can conclude that at the moment, large-cap stocks are slightly undervalued compared to the long-term average, which makes it advantageous for long-term investors to enter the market.
The study also shows that large-cap stocks tend to perform worse day to day and have comparatively lower drops during the market slump than mid-/small-cap stocks in terms of recovery. This resilience makes the large caps very suitable for individuals who want to invest in a stock that offers growth as well as stability.
A Focused Approach: Intensive Concentration On Highly Recommended Stocks
Finally, Bajaj Finserv Large Cap Fund stands out from other large-cap funds by actively managing its portfolio and investing in a limited number of firms, ranging from 25 to 30. : This approach is meant to create outperformance relative to the benchmark index, in the long-term. It has used a high active share this is with the expectation that the growth story in India can be realized by investing in businesses that have sustainable growth prospects.
Using the bottom-up method of investments, the fund carefully tries to assess each company in terms of its operations, KPIs, future potential, and financial standing. It is hoped that this detailed approach is best suited to finding those enterprises that are likely to succeed in the long-term perspective.
Leadership Insights: Several things set this fund apart from other similar constituent funds –-read on to learn why. I am bullish on the fund having got its leadership right through engaging, maintaining a highly active share strategy, and having a strong fundamental view that will lead to the creation of a concentrated portfolio hence the high conviction strategy to beat the benchmark index in the long run, said Ganesh Mohan, CEO of Bajaj Finserv Asset Management Limited.
In this regard, he added that the Nifty 100 TRI Index of India has given positive returns in the last 21 years on 18 occasions, which shows the strength and growth of large caps in the Indian market. The fund that Mohan wants to develop is inclined to believe that it will be of significant benefit to investors and would assist them in actualizing their investment goals.
Nimesh Chandan, the Chief Investment Officer at Bajaj Finserv Asset Management Limited, stressed the fact that large-cap companies provide stability, especially to an investor’s portfolio. On his part, he observed that large-cap companies offer more stability and, therefore, lower risk, adding that on this yardstick of risk to reward, large caps are currently better off than mid-caps and small caps.
Chandan also noted that due to the funds’ ability to invest in companies irrespective of their market capitalization as well as having a high active share, the fund will be unique to most large-cap funds. ”In the case of our large-cap fund, we endeavor to maintain appropriate active share, for which large 25-30 companies would be our focus Our INQUBE philosophy and equity research Tool shall aid us in appropriate company selection and right proportioning which has the potential to create wealth for investors in the large-cap fund in the long run,” he said further.
Investment Strategy: What Are the Financial Outflows?
The Bajaj Finserv Large Cap Mutual Fund intends to allocate 80% to 100% of its funds in large-cap firms’ equities and equity-linked instruments. It also has the portfolio options of investing 0%-20% of its assets in equities or rights of non-large cap or foreign companies, or in debts and money market instruments. Besides, it may invest up to 10% of its funds in units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The ‘Who Should Consider This Fund’ section of the assessment is devoted to the identification of the key target consumers of the fund under consideration.
This fund is more appropriate for long-term investors to generate wealth through investments in large-cap equities. This investment aims to consist of a favorable risk/reward ratio which can also be sensed by those investors who prefer to add to their portfolio a large-cap fund with high growth potential.
The scheme will be in direct and regular plans where the investor can choose Growth or IDCW plans. SIP is one of the investment plans through which investors can invest with as little as Rs 500/- as a lump investment as well.
Final Thoughts: After learning about the specifics of that investment, the individual can ask himself or herself: Is it right for me to invest in this company?
The Bajaj Finserv Large Cap Fund provides investors with an excellent chance to invest in large-cap stocks with this fund’s focused style of investing. Its active share is high and concentrates on focusing on beating the benchmark index and achieving long-term growth. But factors such as the financial objectives and the tolerance to risk of the investors have to be put into consideration in any investment decision.
