Bajaj Finserv AMC's concentrated strategy with investment in select 25-30 stocks
FinTech BizNews Service
Mumbai, July 25, 2024: Bajaj Finserv Asset Management Limited has announced the launch of Bajaj Finserv Large Cap Fund, a unique fund in this category with a high active share and a concentrated strategy focusing on select 25-30 stocks*. Through this unique approach, the fund aims to provide better risk-adjusted returns over the long term.
A recent study by Bajaj Finserv Asset Management Limited shows that the current valuation of the large caps is close to their long-term average of 23.1(Long term average of trailing twelve months Price to Earnings Ratio). This indicates that large caps are currently near their fair valuation, making them an attractive proposition for long-term investments. The study also shows that large cap stocks tend to decline lesser and recover their losses faster than their peers in the mid and small cap categories.
Bajaj Finserv Large Cap Fund will have a concentrated portfolio with a high-conviction stock selection approach, aiming to deliver outperformance over the benchmark in the long term by employing a high active share strategy.
The focus is on India's growth story, identifying businesses with strong potential for sustainable growth. Utilizing a bottom-up investment approach, it meticulously analyses individual companies, their fundamentals, and growth prospects.
Speaking on the launch, Mr. Ganesh Mohan, CEO, Bajaj Finserv Asset Management Limited said, “Bajaj Finserv Large Cap Fund offers investors a unique opportunity to invest in the Champions of Corporate India through a single investment avenue. This fund would create a concentrated portfolio driven by strong conviction in stock selection and maintain a high active share strategy to outperform the benchmark index over the long term. Our research indicates that Nifty 100 TRI Index has performed positively in 18 out of the last 21 years of the index history.** We believe this fund will be a valuable addition to our investors' portfolios and we are confident it will help them achieve their financial goals.”
Nimesh Chandan, Chief Investment Officer, Bajaj Finserv Asset Management Limited said “Large cap companies add relative stability and reduce volatility in an investor’s portfolio. Currently, on a risk-adjusted basis, large cap companies are better placed as a category compared to mid cap and small caps. Bajaj Finserv Large Cap fund will differentiate itself from other funds in the category by adopting a concentrated approach and thereby having a higher active share. Having a significant active share in the portfolio is an essential condition to outperform the benchmark. In our large cap fund, we will endeavour to keep a high active share, focusing on select 25-30* companies. Our INQUBE philosophy and our equity research process will help us in the appropriate selection of and allocation to companies that have the potential to create wealth for investors over the long term.”
Bajaj Finserv Large Cap Fund will invest 80% to 100% in equities and equity-related securities of large cap companies. It may invest 0% to 20% 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% to 10% in units issued by REITs and InvITs.
The product is suitable for investors who are seeking wealth creation over long term through investments in equity and equity-related instruments of large cap companies. The fund will be managed by Nimesh Chandan, CIO, Bajaj Finserv AMC, along with Sorbh Gupta, Senior Fund Manager for equity investments and Siddharth Chaudhary, Senior Fund Manager for debt investments.
The scheme will be available in both direct and Regular plan via growth and IDCW options with minimum investment of Rs. 500 for lumpsum as well as SIP.
