Bajaj Finserv Flexi Cap Fund

A flexi cap fund is a type of mutual fund that can invest in companies across market capitalisations – large, mid as well small-cap companies. A flexi cap mutual fund must invest at least 65% of its portfolio in equity and equity-related instruments, but can flexibly spread this allocation between large, mid, and small cap companies. This helps the fund potentially benefit from the stability offered by large cap companies as well as the growth potential of mid and small cap companies. The fund can also alter its allocation based on market conditions.

The type of fund that is right for an investor depends on their investment horizon, goals and risk appetite. Both flexi cap and index funds have their pros and cons. A flexi cap offers the potential for higher growth in the long run because fund managers can tap into the opportunities across market capitalisations and can dynamically allocate funds based on how each segment is performing.
However, index funds can be considered a relatively stable investment option the portfolio is designed to replicate a benchmark index and the fund’s performance is aligned with that benchmark. Moreover, they are typically passively managed and would therefore have a lower expense ratio than flexi cap funds.

The decision of whether to invest in a flexi cap fund must be based on your investment horizon, goals and risk tolerance levels, among other considerations. The decision to invest in lumpsum or via SIP instalments will also depend on such factors. SIP in a flexi cap mutual fund or any other scheme can offer benefits such as rupee cost averaging and disciplined investing. It is always advisable to consult a financial advisor before making investment decisions.

Difference between flexi cap and multi cap fund as per the guidelines of the Securities and Exchange Board of India, a multi cap fund must allocate at least 25% of its portfolio to large, mid, and small cap companies respectively. Meanwhile, a flexi cap mutual fund needs to maintain a 65% equity exposure at all times but has greater flexibility in deciding how to spread the portfolio between small, mid and large cap funds.

No mutual fund investment is risk-free and equity funds are considered to carry greater risk than debt mutual funds. Additionally, flexi cap mutual funds may be more volatile than large cap funds, which tend to offer relatively stable returns because they invest in top-tier companies.
However, a skilled fund manager of a flexi cap fund will aim to mitigate risks by altering the allocation between the different market capitalisations based on the economic conditions and their insights.

More than investment experience, the right fund type for you depends on your investment horizon, goals and risk tolerance level. A flexi cap fund may be a good fit for investors who have a high risk appetite and want capital appreciation but have a long investment horizon.
Also, as it is an actively managed fund, an investor does not need financial knowledge to maintain a balanced and diversified portfolio, as the fund manager follows the markets and makes strategic allocations. This could be a useful feature for new investors.

The Net Asset Value of NAV of a scheme is updated daily as it is based on the market performance of the scheme’s underlying assets and the fund’s liabilities. The Bajaj Finserv Flexi Cap Fund NAV on a given day can be seen on the scheme page.

Mentioned below are a few key reasons why you should consider investing in Bajaj Finserv Flexi Cap Fund:
Megatrend investing approach: Bajaj Finserv Flexi Cap Fund employs a forward-thinking strategy by anticipating influential, long-term megatrends rather than following current trends. This approach enhances the potential for long-term returns by identifying future growth opportunities beyond traditional sector classifications, while also mitigating behavioral biases such as recency bias.
INQUBE investment philosophy: Bajaj Finserv Asset Management's INQUBE philosophy leverages informational, quantitative, and behavioral edges to gain a competitive advantage. It focuses on acquiring timely information, developing predictive models, and making informed decisions to optimize investment returns over the long term.
Portfolio diversification: As a flexi cap fund, it diversifies investments across companies of varying market capitalizations, allowing flexibility to capitalize on growth opportunities regardless of company size.