Bajaj Finserv Asset Management launches the Bajaj Finserv Large and Mid Cap Fund. Details here

Bajaj Finserv Asset Management has introduced the ‘Bajaj Finserv Large and Mid Cap Fund’, a newly launched equity fund aimed at fostering investors’ wealth accumulation through a strategic approach known as ‘Moat Investing’. This open-ended equity scheme is designed to invest in both large-cap and mid-cap stocks, with a focus on leveraging economic moats for sustained long-term viability and profitability.

The initial subscription for the new fund offer will commence on February 06 and conclude on February 20, this year.

This fund employs a distinctive approach by incorporating the concept of an “Economic Moat” into its asset allocation strategies. In investment terms, an economic moat serves as a protective shield, safeguarding a company’s profits against potential challenges in the dynamic business environment. This particular strategy focuses on identifying businesses with swift growth prospects, profitability, and a lasting competitive advantage.

Speaking on the launch of the product, Ganesh Mohan, CEO, Bajaj Finserv Asset Management, said “This new offering is a testament to our strategic vision and deep understanding of market dynamics. We are capitalising on the growth potential inherent in both large-size companies and agile midcap enterprises. This approach allows investors to benefit from the relative stability of established giants and the agility of rising stars.”

In the current market environment, both large-caps and a blend of large and mid-caps are trading below their long-term averages, creating an advantageous risk-reward scenario, particularly when compared to the Nifty 500 Index. The strategic focus on economic moats within large and mid-cap stocks stems from their resilience in the face of market fluctuations and their potential for sustained long-term growth. 

This approach aligns with Bajaj Finserv AMC’s commitment to providing enduring value to its investors. Following its investment philosophy, InQuBE, the investment process integrates quantitative factors such as Return on Incremental Capital (ROIC) and sustained margins, along with qualitative criteria like pricing power and management quality. This ensures a comprehensive approach to information gathering and prudent decision-making, aimed at achieving market outperformance.

“Our team of seasoned professionals has meticulously curated a portfolio designed to weather market fluctuations and seize growth opportunities built on the unique concept of Moat Investing. In this strategy, our team focuses not only on market leaders but those companies that can defend their leadership position,” added Mohan.

Nimesh Chandan, CIO, Bajaj Finserv Asset Management, highlighted “Large and Mid cap is a category which has many companies with leadership in their businesses. The key characteristic of this fund is stock selection based on the moat investing strategy. It is a strategy that identifies companies with a competitive advantage which helps them defend their leadership and strong business metrics, resulting in long-term value creation. We endeavour to identify robust businesses across sectors based on bottom analysis of companies and hence create a diversified portfolio for our investors. We believe that moat investing is a robust framework to identify strong business models that have the potential to create long-term wealth.”

Nimesh Chandan and Sorbh Gupta will collaborate in managing the equity side of the fund, while Siddharth Chaudhary will oversee the debt side.

 

 

 

 

 

 

 

 

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Published: 05 Feb 2024, 03:20 PM IST

 
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