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Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Flexi Cap Fund: An innovative proposition with megatrends investing approach

Aug 11, 2023 16:53 IST 
Pune, Maharashtra, India

Bajaj Finserv Asset Management Ltd. has launched the Bajaj Finserv Flexi Cap Fund, an equity scheme with innovative investment strategy. This approach revolves around ‘megatrends’, focusing on long-lasting trends that affect businesses and economies. Just like the name suggests, flexi cap funds adapt to shifts in various industries and markets. By investing in this fund, you could seize potential opportunities and aim to grow your wealth over time.


Bajaj Finserv Mutual Fund


Understanding megatrends investing

Investing in megatrends offers a range of benefits for mutual fund investors. By concentrating on companies leading in transformative trends, you can position yourself to potentially benefit from consistent growth and expanding opportunities linked to megatrends.


One key advantage of megatrends investing is of spreading the investment across different industries and sectors. Since megatrends span various sectors, you can access opportunities that sector-based investments might not catch. Furthermore, aligning with megatrends can help identify companies with strong growth potential and solid business models. These companies usually perform better during market instability and economic challenges, giving your investment portfolio greater stability.


How does Bajaj Finserv Flexi Cap Fund utilize the megatrends investing approach?

While companies influenced by megatrends have growth opportunities, it's crucial to scrutinize them further to identify the ones with most potential. The fund managers at Bajaj Finserv Mutual Fund evaluate companies based on specific standards:


1. Monetization potential

Monetization involves making money from a business or asset. Sometimes, despite aligning with a positive trend, a business might struggle to capitalize on it. Megatrend investing is about identifying companies capable of capitalizing on trends and driving profit growth.


2. Financial check

Evaluating a business's financial health is critical. Factors like capital intensity, future cashflows, profit growth, and balance sheet quality are assessed. Companies benefiting from megatrends should show strong revenue growth. Weak financials could lead to constant reliance on external funding, thereby negatively impacting investor returns. In-depth financial checks help evaluate a company's potential to enhance investor wealth over time.


3. Valuation analysis

Valuation reflects the market perceptions and expectations about a company's future potential. Markets aren't always precise in valuing a company's business accurately. This presents opportunities for investors to enter or exit a company at favourable prices. Valuations also determine how much of the portfolio should be allocated to different companies.


Investing in Bajaj Finserv Flexi Cap Fund: SIP or Lumpsum?

When considering the Bajaj Finserv Flexi Cap Fund, you have two main routes to invest: Systematic Investment Plan (SIP) and lumpsum investment.

  1. SIP route: SIP offers a structured way to invest. It lets you invest in a mutual fund scheme at regular intervals, even with small amounts like Rs. 500. Following a well-defined plan through SIP investment can lead to long-term growth. 

  2. Lumpsum route: Lumpsum investment is about putting a significant amount into a mutual fund scheme at once. This approach can be more suitable for investors looking to invest in flexi cap funds and have a high-risk tolerance. 


Whether you choose SIP or lumpsum, considering the Bajaj Finserv Flexi Cap Fund can prove to a wise decision in the long run. The megatrend approach through this scheme provides a distinct opportunity. By embracing ever-evolving trends, you can tap into growth, innovation, and economic progress. Adopting this forward-looking approach with Bajaj Finserv Flexi Cap Fund could potentially lead to financial growth in the long run.


About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.


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

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Bajaj Finserv Mutual Fund
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