Bajaj Finserv AMC launches fund 'focused on' 25-30 largecap stocks
Bajaj Finserv Large Cap Fund will have a concentrated portfolio with a 'high conviction' stock selection approach
 "Bajaj Finserv AMC launches fund 'focused on' 25-30 largecap stocks")
Bajaj Finserv Asset Management has announced the launch of an open-ended equity scheme that will focus on just 25-30 stocks in the largecaps category.
Bajaj Finserv Large Cap Fund will be benchmarked against the Nifty 100 Total Return Index (TRI). It aims to provide better risk-adjusted returns over the long term through its high active share approach. “Having a significant active share in the portfolio is an essential condition to outperform the benchmark. In our largecap fund, we will endeavour to keep a high active share, focusing on select 25-30 companies,” said Nimesh Chandan, chief investment officer at Bajaj Finserv Asset Management in a press release.
“Bajaj Finserv Large Cap Fund offers investors a unique opportunity to invest in the champions of corporate India through a single investment avenue,” said Ganesh Mohan, chief executive officer of Bajaj Finserv Asset Management in the release.
The company said the investment strategy aligns with its study which found that largecap stocks are at near their fair valuation, making them an attractive proposition for long-term investments. The study also highlighted that such stocks decline less and recover faster than mid and smallcap stocks in market downturns.
Research indicates that the Nifty 100 TRI Index has performed positively in 18 out of the last 21 years of the index history, said Mohan.
Investment allocation:
Bajaj Finserv AMC Large Cap Fund will invest 80 per cent to 100 per cent in equities and equity-related securities of largecap companies. It may invest up to 20 per cent in equities and equity-related securities of non-large cap companies or equity and equity-related securities of foreign companies or debt or money market instruments. It may also invest 0 per cent to 10 per cent in units issued by REITs and InvITs.
Investment period
NFO opens for subscription on 29th July and closes on 12th August 2024
Minimum investment:
The scheme will be available as direct and regular plans via growth and IDCW options with minimum investment of Rs. 500 for lump sum as well as SIP
Fund managers:
The fund will be managed by Nimesh Chandan, Sorbh Gupta and Siddharth Chaudhary.