🔔 Bajaj Finserv Small Cap Fund NFO: A Fresh Opportunity for Aggressive Investors


Bajaj Finserv Mutual Fund has rolled out its latest offering — the Small Cap Fund, an open-ended equity scheme aimed at capital appreciation by investing primarily in small-cap companies. The New Fund Offer (NFO) period runs from June 27 to July 11, 2025, providing investors with an early entry point into this fund.

📅 Key Details at a Glance

  • Fund Name: Bajaj Finserv Small Cap Fund

  • NFO Dates: June 27 – July 11, 2025

  • Minimum Investment: ₹500 (in multiples of ₹1 thereafter)

  • Investment Type: Equity fund focused on small-cap stocks

  • Benchmark: BSE 250 SmallCap Total Return Index (TRI)

  • Fund Managers:

    • Equity: Nimesh Chandan & Sorbh Gupta

    • Debt: Siddharth Chaudhary

  • Exit Load: 1% if redeemed over 10% of units within 6 months; nil after that

  • Plan Options: Direct & Regular; Growth & IDCW available

🧠 Investment Strategy

The fund will actively invest in a diversified portfolio of small-cap companies. The core focus will be on identifying quality businesses with strong fundamentals, growth potential, and favorable valuations. A key feature of Bajaj Finserv's approach is its proprietary “INQUBE” framework, which combines the principles of quality, growth, and value to filter investment opportunities and manage portfolio risks effectively.

The fund aims to hold 40 to 100 stocks selected from a broad universe of approximately 300–400 small-cap companies, targeting long-term wealth creation.

📈 Why Consider Small Cap Funds Now?

Small-cap stocks have demonstrated strong performance over the long term, often surpassing the returns from large- and mid-cap counterparts. Currently, the small-cap segment is coming off a period of correction, and valuations are back to more reasonable levels — offering potential for future growth.

Key reasons to invest now:

  • Improved valuations after recent market consolidation

  • Long-term track record of strong performance from small caps

  • Increased contribution of small caps to overall market capitalization in recent years

👤 Who Should Invest?

This fund is best suited for:

  • Aggressive investors who can handle market fluctuations

  • Long-term investors with a time horizon of 5 years or more

  • Individuals seeking portfolio diversification through high-growth potential small-cap stocks

  • Investors looking to start with low entry amounts, such as ₹500 through SIP or lump sum

📌 Important Points to Note

  • High Risk Involved: Small-cap investing is volatile and may not suit all investors.

  • No Track Record Yet: As this is a new fund, past performance data is not available.

  • Taxation:

    • Short-term capital gains (if held < 1 year): 20%

    • Long-term capital gains (if held > 1 year): 12.5% on profits exceeding ₹1.25 lakh annually

  • Exit Load: Avoid redeeming more than 10% within the first 6 months to prevent a 1% charge.

🧾 Quick Summary

Feature Details
Fund Type Small Cap Equity Scheme
Minimum Investment ₹500
SIP Available Yes, starts from ₹500/month
Fund Managers Nimesh Chandan, Sorbh Gupta, Siddharth Chaudhary
Benchmark Index BSE 250 SmallCap TRI
Exit Load 1% (if >10% redeemed within 6 months)
Ideal Investment Horizon 5 years or more
Risk Level Very High

📝 Final Thoughts

The Bajaj Finserv Small Cap Fund brings a research-driven approach to small-cap investing, with a focus on disciplined stock selection. It’s designed for investors willing to embrace short-term volatility in pursuit of long-term capital appreciation.

If you’re planning to stay invested for the long haul and can stomach market ups and downs, this fund could be a worthwhile addition to your investment portfolio. However, if you’re risk-averse or have a short investment horizon, it may be wise to consider more conservative options or wait until the fund establishes a performance track record.

🔒 Disclaimer:

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. The above content is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.

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