Bajaj Finserv Asset Management Limited has introduced the Bajaj Finserv Large Cap Fund, a distinctive addition to its lineup. Unlike traditional offerings in this category, this fund adopts a high active share and concentrated strategy, focusing sharply on 25-30 carefully selected stocks. The objective behind this unique approach is to deliver superior risk-adjusted returns over extended investment horizons. 

According to recent findings from Bajaj Finserv Asset Management Limited, large cap stocks are presently trading close to their long-term average Price to Earnings Ratio (PE ratio) of 23.1. This suggests that large caps are currently valued at fair levels, which enhances their appeal as promising options for long-term investment opportunities. The New Fund Offer (NFO) for the Bajaj Finserv Large Cap Fund will be open for subscription from July 29th to August 12th, 2024.

The study further reveals that large cap stocks exhibit a tendency to experience milder declines and recover more swiftly from downturns compared to mid and small cap stocks.

The Bajaj Finserv Large Cap Fund will adopt a focused portfolio strategy with a strong emphasis on selecting stocks with high conviction. This approach aims to achieve superior performance relative to the benchmark over the long term by employing a high active share strategy.

The focus is on India's economic growth trajectory, pinpointing businesses poised for sustainable expansion. Employing a meticulous bottom-up investment approach, the fund rigorously assesses individual companies, scrutinizing their fundamentals and growth potential.

Ganesh Mohan, CEO of Bajaj Finserv Asset Management Limited, highlighted, "The launch of Bajaj Finserv Large Cap Fund provides investors a distinctive opportunity to invest in India's corporate champions through a single avenue. This fund will maintain a concentrated portfolio driven by strong conviction in stock selection and employ a high active share strategy to surpass the benchmark index over the long term. Our analysis indicates that the Nifty 100 TRI Index has shown positive performance in 18 of the last 21 years. We are confident that this fund will be a valuable addition to our investors' portfolios, aiding them in achieving their financial objectives."

Nimesh Chandan, Chief Investment Officer at Bajaj Finserv Asset Management Limited, emphasized the role of large cap companies in providing stability and reducing portfolio volatility for investors. He pointed out that, currently, large cap companies offer better risk-adjusted returns compared to mid cap and small cap counterparts. The Bajaj Finserv Large Cap Fund aims to set itself apart from other funds in its category by adopting a concentrated strategy with a higher active share.

Chandan highlighted, "Our approach in the large cap fund will prioritize maintaining a significant active share, focusing intensely on a select group of 25-30 companies. Guided by our INQUBE philosophy and rigorous equity research process, we aim to meticulously select and allocate to companies that demonstrate potential for long-term wealth creation for our investors."

The Bajaj Finserv Large Cap Fund will primarily allocate between 80% to 100% of its assets into equities and equity-related securities of large cap companies. It may also invest up to 20% in equities and equity-related securities of non-large cap companies or foreign companies, as well as in debt or money market instruments. Additionally, the fund may allocate up to 10% in units issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

This investment product is ideal for investors seeking long-term wealth creation through investments in equity and related instruments of large cap companies. The fund will be managed by Nimesh Chandan, Chief Investment Officer at Bajaj Finserv Asset Management Company, in collaboration with Sorbh Gupta, Senior Fund Manager overseeing equity investments, and Siddharth Chaudhary, Senior Fund Manager responsible for debt investments.

The Bajaj Finserv Large Cap Fund will offer investors the choice between Direct and Regular plans, available in both Growth and IDCW (Income Distribution cum Capital Withdrawal) options. Investors can start investing with a minimum amount of Rs 500 for lump sum investments as well as through Systematic Investment Plans (SIPs).