This fund will be open for public investment from 27 June 2025 and will remain available until 11 July 2025. The scheme gives investors the benefit of three things—quality, growth,
and value—within a single fund. Bajaj Finserv Small Cap Fund is an open-ended equity scheme that mainly invests in small cap stocks.
Why Small Cap is Attractive Now
The recent decline in small cap stocks has created a good opportunity for long-term investors to invest in mutual funds. Although over 80% of small-cap companies have shown strong profit growth of 38%
and healthy return ratios, many of these stocks are still priced 15-45% below their 52-week highs. This drop has opened up a gap between their actual value and current prices.
Start Investing from Just Rs 500
You can invest in this NFO with a minimum amount of Rs 500 and then in multiples of Rs 1. Additional investments can be made for a minimum of Rs 100 and in multiples of Rs 1.
If you redeem your investment within 6 months from the allotment date, a 1% exit load will apply. This fund offers two options—Growth and IDCW (Income Distribution cum Capital Withdrawal).
The equity portion of the fund will be managed by Nimesh Chandan (CIO) and Saurabh Gupta (Head-Equity), while Siddharth Choudhary (Head – Fixed Income) will manage the debt portion.
Investment Strategy of the Fund
This fund is meant for investors aiming for long-term wealth growth through investments in small-cap equity and related instruments.
It focuses on high-quality stocks while avoiding companies with weak governance, poor infrastructure, or financial trouble.
The fund filters a large pool of over 1,100 small-cap companies down to a focused list of strong prospects. It uses a strict process involving internal analysis
and risk checks to avoid financially weak firms. From around 300-400 shortlisted companies, a final portfolio of 40-100 businesses is selected.
Long-Term Wealth Creation Opportunity
Ganesh Mohan, Managing Director of Bajaj Finserv AMC, said, “This Small Cap Fund reflects our belief in the long-term potential of India’s small cap space.
While small caps are more volatile than broader indices, this makes active management important in dealing with market ups and downs and spotting quality opportunities.”
The strategy focuses on identifying high-quality companies in the early stages of growth, which are expected to perform well over time.
With the recent fall in small cap valuations, this NFO offers investors a strong chance to grow their wealth as these businesses expand and contribute more to the economy.
Who Should Consider This Fund
Bajaj Finserv Small Cap Fund is suitable for investors looking to benefit from the growth of strong companies that are currently undervalued.
It also suits those who want to diversify their investment portfolio with a focus on small caps and long-term returns. The fund’s benchmark is the BSE 250 Small Cap Index TRI.
Portfolio of Quality Businesses
Nimesh Chandan, CIO of Bajaj Finserv AMC, mentioned that the new small cap fund includes quality businesses currently trading below their actual value.
The small cap segment includes many industries and sub-sectors, offering chances to invest in emerging business leaders. Although the NSE Small-Cap Index has remained mostly steady, many companies posted strong profits last year.
This gives the fund an opportunity to invest in small-cap stocks now available at lower valuations due to recent corrections.
