Bajaj Finserv Mutual Fund announced the launch of the Bajaj Finserv Flexi Cap Fund, an open-ended dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks.
The scheme opened for public subscription on July 24, 2023, and will close on August 07, 2023. The scheme re-opens for continuous sale and repurchase within five days from the date of allotment.
Q. What kind of mutual fund scheme is this?
This is an open-ended dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks. This product is suitable for investors seeking wealth creation or capital appreciation over the long term.
Nimesh Chandan, CIO, Bajaj Finserv Asset Management said, “Bajaj Finserv Flexi Cap Fund is based on ‘MEGATRENDS’ which are powerful long-term changes that affect economies, businesses, and companies. Spotting Megatrends paves the way for long-term buy-and-hold investing opportunities and this is a key differentiator between cyclical, thematic, and factor investing. Our portfolio will be long-term, multi-thematic, multi-cap, multi-sector and growth-oriented.”
Q. What is the main objective of investing in this fund?
The investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments across market capitalisation. However, there is no assurance that the investment objective of the scheme will be achieved.
Q. How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹500 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments | Indicative allocations (% of total assets) | Risk Profile | |
Minimum | Maximum | ||
Equity and equity-related instruments of large-cap, mid-cap, and small-cap companies | 65 | 100 | Very High Risk |
Debt and money market instruments and units of mutual fund schemes | 0 | 35 | Low to Moderate Risk |
Units issued by REITs and InvITs | 0 | 10 | Moderately High Risk |
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such flexicap funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Name of the fund | Ten-year returns (in %) |
JM Flexi Cap Fund | 17.80% |
Aditya Birla Sun Life Flexi Cap Fund | 17.35% |
Kotak Flexi Cap Fund | 17.23% |
SBI Flexi Cap Fund | 16.98% |
HDFC Flexi Cap Fund | 16.65% |
Franklin India Flexi Cap Fund | 16.62% |
DSP Flexi Cap Fund | 16.34% |
HSBC Flexi Cap Fund | 15.22% |
Bandhan Flexi Cap Fund | 14.74% |
Source: MoneyControl | |
Q. How will the scheme benchmark its performance?
The scheme benchmark would be S&P BSE 500 TRI. The composition of the aforesaid benchmark is such that, it is most suited for comparing the performance of the scheme. The trustees may change the benchmark in future if a benchmark better suited to the scheme's investment objective is available.
Q. Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme.
The “Exit Load” would be charged for each purchase of units through Lumpsum/switch-in/Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP), exit load will be as follows.
- If units are redeemed/switched out within six months from the date of allotment:
a) If up to 10% of units allotted are redeemed/switched out – Nil
b) Any redemption/switch-out of units in excess of 10% of units allotted - 1% of applicable NAV.
- If units are redeemed/switched out after 6 months from the date of allotment, no exit load is payable
Q. Who will manage this scheme?
Nimesh Chandan and Sorbh Gupta would be looking into the equity aspects of the scheme. Siddharth Chaudhary would be responsible for the debt component of the scheme.
Q. Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
