This fund will open for public investment on 27 June 2025 and will remain open till 11 July 2025. The scheme offers investors a mix of three benefits—quality, growth, and value—in 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 a Good Option Now
Recently, small-cap stocks have declined, creating a good entry point for long-term investors.
Even though over 80% of small-cap companies showed 38% profit growth and strong return ratios, many of their stock prices are still 15–45% below their 52-week highs.
This drop has created a gap between their real value and current prices, offering good investment opportunities.
Invest with Just ₹500
You can start investing in this NFO with a minimum of ₹500 and then in multiples of ₹1. Further investments can be made starting from ₹100, again in multiples of ₹1.
If you redeem your money within 6 months of the allotment date, a 1% exit load will be charged. The fund offers two options: Growth and IDCW (Income Distribution cum Capital Withdrawal).
The equity part of the fund will be managed by Nimesh Chandan (CIO) and Saurabh Gupta (Head – Equity).
The debt portion will be handled by Siddharth Choudhary (Head – Fixed Income).
Fund’s Investment Strategy
This fund targets investors who want to grow their wealth in the long term by investing in small-cap equity and related instruments.
It focuses on high-quality stocks and avoids companies with weak governance, poor infrastructure, or financial instability.
From a large universe of over 1,100 small-cap companies, the fund narrows down to about 300–400 using internal research and risk checks. Finally, it selects 40–100 strong businesses for its portfolio.
Long-Term Growth Opportunity
Ganesh Mohan, Managing Director of Bajaj Finserv AMC, said this fund reflects the company’s strong belief in the long-term growth potential of India’s small-cap sector.
Since small caps are more volatile than large indices, active management helps manage market swings and spot high-quality opportunities.
The focus is on finding high-potential businesses in the early phase of their growth that can deliver strong performance over time.
With small-cap valuations now lower, this NFO provides a good chance to grow wealth as these companies expand and contribute more to the economy.
Who Should Invest
This fund is ideal for investors who want to invest in strong, undervalued companies with good growth potential.
It also works for those looking to diversify their portfolio with a focus on small-cap stocks and long-term returns. The fund’s benchmark is the BSE 250 Small Cap Index TRI.
Portfolio Focused on Quality
Nimesh Chandan, CIO of Bajaj Finserv AMC, mentioned that this new fund invests in quality businesses currently trading below their actual value.
The small-cap sector includes a wide range of industries and sub-sectors, offering many opportunities to invest in emerging business leaders.
Even though the NSE Small-Cap Index has remained mostly stable, many small-cap companies reported strong profits last year.
This makes it a good time to invest, as many stocks are still available at attractive valuations due to recent market corrections.
