NFO Ongoing: What Makes the Bajaj Finserv Multi Cap Fund Different?

When
it
comes
to
investing,
a
common
tendency
is
to
follow
the
herd
–
invest
in
stocks
that
are
gaining
in
popularity
or
selling
those
that
are
out
of
favour. However,
better
opportunities
can
often
be
found
by
going
against
the
tide
and
spotting
or
leveraging
trends
that
the
market
is
yet
to
recognise.
 

Bajaj
Finserv
Multi
Cap
Fund
follows
a
contrarian
investing
strategy
 

This
is
what
makes
the

Bajaj
Finserv
Multi
Cap
Fund
comparatively
different.
The
fund
follows
a
contrarian
investing
strategy,
seeking
to
generate
long-term
return
potential
by
investing
in
undervalued
opportunities.
 

The
New
Fund
Offer
period
for
the
scheme
began
on
Thursday,
February
6^th,
2025,
and
is
on
till
Thursday,
February
20^th,
2025.
 

This
article
tells
you
more
about
the
distinct
features
of
the
Bajaj
Finserv
Multi
Cap
Fund
and
how
it
seeks
to
leverage
contrarian
investing
to
create
the
potential
for
long-term
wealth
building.
 

Bajaj
Finserv
Multi
Cap
Fund
and
contrarian
investing

Contrarian
investing
is
a
strategy
where
investors
go
against
popular
market
trends.
The
core
belief
is
that
markets
often
overreact
to
news
and
act
out
of
fear,
greed
or
overconfidence,
causing
some
stocks
to
be
undervalued
or
overvalued.
 

So,
instead
of
following
the
crowd,
the
Bajaj
Finserv
Multi
Cap
Fund
will
seek
out
fundamentally
strong
stocks
that
others
are
avoiding
because
of
temporary
fear
or
bad
news
and
sell
stocks
that
others
are
chasing.
Thus,
it
will
seek
to
identify
hidden
opportunities.
These
could
arise
from
business
cycles,
management
transitions,
underappreciated
growth
opportunities,
turnaround
stories,
temporary
business
disruptions
and
cyclical
movements,
among
others.
 

This
approach
will
allow
the
fund
to
buy
stocks
at
undervalued
rates
and
potentially
earn
returns
over
time
if
the
market
recognises
the
security’s
intrinsic
value.
 

Here
are
some
key
features
of

contrarian
investing:

• 
  
  
  Goes
  against
  market
  trends
  –
  Invests
  in
  stocks
  that
  are
  currently
  out
  of
  favour;
  avoids
  stocks
  that
  are
  overpriced
  owing
  to
  popularity.

• 
  
  
  Focuses
  on
  undervalued
  stocks
  –
  Looks
  for
  companies
  with
  potential
  for
  long
  term
  growth
  that
  the
  market
  has
  overlooked.

• 
  
  
  Requires
  patience
  –
  Investments
  may
  take
  time
  to
  show
  returns.

• 
  
  
  Based
  on
  deep
  research
  –
  Involves
  analysing
  fundamentals
  rather
  than
  following
  market
  sentiment.

• 
  
  
  Seeks
  long-term
  gains
  –
  Aims
  to
  benefit
  when
  the
  market
  corrects
  itself.

• 
  
  
  Minimizes
  emotional
  decisions
  –
  Avoids
  panic
  selling
  and
  trend-driven
  buying.
   

Professional
management

Contrarian
investing
requires
patience,
research,
and
confidence,
as
it
may
take
time
for
the
market
to
correct
itself
and
reflect
a
stock’s
intrinsic
worth.
It
can
also
be
risky,
as
not
every
contrarian
approach
–
especially
one
not
grounded
in
strong
fundamental
and
behavioural
analysis
–
may
pay
off.
This
is
where
the
mutual
funds
offer
an
advantage,
as
they
are
professionally
managed.
With
the
Bajaj
Finserv
Multi
Cap
Fund,
our
investment
experts
will
make
buy
and
sell
decisions
regarding
the
portfolio,
based
on
contrarian
investing
strategies,
allowing
even
laypersons
and
new
investors
to
benefit
from
this
nuanced
approach. 
 

Balancing
risk
and
reward
across
market
caps

Combined
with
this
contrarian
approach
is
the
benefit
of
diversification.
Being
a
multi
cap
fund,
this
scheme
invests
across
large
cap,
mid
cap,
and
small
cap
stocks.
Large
cap
stocks
lend
relative
stability
to
the
portfolio,
while
mid
cap
and
small
cap
stocks
offer
significant
long-term
growth
potential,
though
with
more
risk.
 

Moreover,
historical
stock
market
data
shows
that
the
winning
market
cap
changes
across
market
cycles
–
meaning
that
not
any
single
market
cap
always
comes
out
on
top.
In
some
years
and
cycles,
large
caps
have
outperformed,
while
in
others,
mid
caps
or
small
caps
have
been
the
leaders.
Thus,
by
combining
all
three
in
its
portfolio
–
with
a
minimum
25%
exposure
to
each
–
the
fund
will
seek
to
leverage
diverse
market
opportunities.
 

*Past
performance
may
or
may
not
be
sustained
in
the
future.
 

Who
should
invest
in
this
fund?

The
Bajaj
Finserv
Multi
Cap
Fund
could
be
suitable
for
investors
who:

• 
  
  Prefer
  a
  long-term
  approach
  rather
  than
  short-term
  speculation

• 
  
  Seek
  long-term
  wealth
  creation
  with
  5+
  years

• 
  
  Are
  comfortable
  with
  market
  fluctuations

• 
  
  Want
  a
  diversified
  portfolio
  with
  disciplined
  exposure
  to
  large
  cap,
  mid
  cap,
  and
  small
  cap
  stocks
   

How
to
invest
in
the
Bajaj
Finserv
Multi
Cap
Fund

Investors
participating
in
the
New
Fund
Offer
period
(i.e.
from
February
6^th,
2025,
to
February
20^th,
2025)
can
buy
units
at
a
face
value
of
Rs.
10
each.
When
the
fund
reopens
for
subscription
in
a
few
business
days,
investors
can
purchase
units
at
the
prevailing
Net
Asset
Value.
The
investment
routes
include:
 

• 
  
  Directly
  through
  Bajaj
  Finserv
  AMC
  offline
  or
  online
  (www.bajajamc.com)

• 
  
  Through
  a
  registered
  mutual
  fund
  distributor

• 
  
  Through
  Registrar
  and
  Transfer
  Agent
  KFintech

• 
  
  Through
  aggregator
  platforms
   

Investments,
both
Systematic
Investment
Plan
(SIP)
and
lumpsum,
start
at
Rs.
500.
Those
considering
starting
an
SIP
in
the
scheme
can
take
the
help
of
a

mutual
fund
SIP
calculator
to
plan
their
investments.
Lumpsum
investors
can
similarly
use
a
lumpsum
calculator.

Mutual
Fund
investments
are
subject
to
market
risks,
read
all
scheme
related
documents
carefully.