Are you a trader who is trying to balance the overall risk and reward of your mutual fund investments? Diversifying your portfolio is indeed a common strategy, but what if you could invest in a fund that follows a smart diversification strategy? Let’s talk about a fund that invests in large-cap, mid-cap, and small-cap stocks. This kind of flexibility not only helps reduce risk but also aims for a potential long-term growth. Let’s introduce you to the Bajaj Finserv Flexi Cap Fund Direct Growth Plan.
In this article, you can also explore the latest Bajaj Finserv Flexi Cap Fund NAV and its performance insights for 2024!
Let us begin!
Fund Management and Objectives
Bajaj Finserv Flexi Cap Fund Direct Plan-Growth is an equity mutual fund that focuses on investing primarily in stocks. It was launched on August 14, 2023. The fund aims to potentially outperform inflation over the long term. This makes it suitable for investors who are looking for capital appreciation.
Bajaj Finserv Flexi Cap Fund portfolio invests in a mix of large-cap, mid-cap, and small-cap stocks. This flexibility makes it easy to adapt to market changes and target growth opportunities.
Bajaj Finserv Flexi Cap Fund NFO Details
| Category | Flexi Cap Fund |
| Inception Date | 14th August 2023 |
| Benchmark | S&P BSE 500 TRI |
| Minimum Investment Amount | Rs. 500/- and in multiples of Re. 1/- thereafter |
| SIP Frequency | Daily, Weekly, Fortnightly, Monthly, Quarterly |
| Fund Manager | Mr. Nimesh Chandan and Mr. Sorbh Gupta (Equity)Mr. Siddharth Chaudhary (Debt) |
| AUM (IN CR) | ₹3,883 crore as of September 2024 |
Performance and Returns
The Bajaj Finserv Flexi Cap Fund Direct Growth has delivered impressive returns. As of Oct 21st, 2024, the fund has achieved a Compound Annual Growth Rate (CAGR) of 39.04% since its inception. Over the past year, the fund has provided a CAGR return of 44.82%.
You will be amazed to know that its return has been 21.99% over the last six months. Not only this, it has reported a return of 4.15% over the last three months.
Investment Allocation
The Bajaj Finserv Flexi Cap Fund portfolio invests in different types of assets:
- Equity (Stocks): 96.2% of the fund is invested in stocks, meaning most of your money is in the stock market.
- Debt (Bonds): 2.67% is invested in bonds, which are generally safer but offer lower returns.
- Cash & Cash Equivalents: 1.13% is kept in cash or very safe, liquid investments like savings accounts.
A look – Bajaj Finserv Flexi Cap Fund Portfolio 2024
- Giant Companies: 46.96% of the fund is invested in the big companies, compared to 49.95% in other similar funds.
- Large Companies: 13.72% is in large companies, while other funds invest around 21.59%.
- Mid-sized Companies: 26.63% of the fund is in mid-sized companies, more than the category average of 21.53%.
- Small Companies: 12.69% is in small companies, higher than the 7.99% category average.
- Micro Companies: None of the fund is invested in very tiny companies, while other funds invest around 0.95%.
The average market capitalization (size) of the companies in this portfolio is ₹1,41,297 Cr, which is smaller than the category average of ₹1,81,109 Cr.
- Number of Stocks: The fund invests in 67 different stocks.
- Top 10 Stocks: 40.36% of the fund is concentrated in its 10 biggest investments.
- Top 5 Stocks: 25.63% is in the top 5 stocks.
- Top 3 Sectors: 42.95% of the fund is invested in just 3 sectors (industries).
- Price-to-Book (P/B) Ratio: 5.95, which shows how the market values these companies compared to their book value.
- Price-to-Earnings (P/E) Ratio: 41.17, showing how expensive these companies are based on their earnings.
Learn how to use the P/E ratio for better investment insights!
Bajaj Finserv Flexi Cap Fund Top Holdings- 2024
- HDFC Bank (Financial): 7.65%
- Hindustan Unilever (Consumer Staples): 5.50%
- Tata Consultancy Services (Technology): 4.46%
- Reliance Industries (Energy & Utilities): 4.05%
- Divi’s Laboratories (Healthcare): 3.97%
- Mahindra & Mahindra (Consumer Discretionary): 3.76%
- Britannia Industries (Consumer Staples): 3.06%
- Bharti Airtel (Technology): 2.98%
- Sudarshan Chemical (Materials): 2.48%
- SBI Life Insurance (Financial): 2.45%
Key Parameters
As of October 18, 2024, the Bajaj Finserv flexi cap fund NAV is ₹14.7540. The fund has an Assets Under Management (AUM) of ₹3,883 crore as of September 2024. This is lower than the average for similar funds in its category. Additionally, the fund has an expense ratio of 0.4%, reflecting the cost associated with managing the fund.
Risk Profile
This fund is classified as Very High Risk.
- Mean Return (%): This tells you the average return the fund has given over time. A higher number means better performance.
- BSE 500 TRI: 17.81%,
- Flexi Cap: 18.42% (higher is better).
- Standard Deviation (%): This shows how much the returns can vary. A higher number means more ups and downs, which is riskier.
- BSE 500 TRI: 12.95%,
- Flexi Cap: 12.59% (lower is less risky).
- Sharpe Ratio: This shows if the fund’s returns are good for the risk taken. The higher the Sharpe ratio, the better the returns compared to the risk.
- BSE 500 TRI: 0.93,
- Flexi Cap: 1.01 (higher means better risk-adjusted returns).
- Sortino Ratio: This focuses on how well the fund avoids losses. The higher the number, the better it protects you from downside risks.
- BSE 500 TRI: 1.72,
- Flexi Cap: 1.85 (higher means better protection against losses).
- Beta: This measures how much the fund moves compared to the market. A beta of 1 means the fund moves exactly like the market. A beta below 1 means it’s less risky.
- Flexi Cap: 0.91 (slightly less risky than the market).
- Alpha: This shows how much extra return the fund gives compared to the market. A positive alpha means the fund did better than the market.
- Flexi Cap: 1.73 (this fund outperformed the market by 1.73%).
These numbers are based on data from the last three years (as of 30-Sep-2024).
Taxation
Taxation for the Bajaj Finserv Flexi Cap Fund Direct Growth is structured as follows:
- Short-term capital gains, (if you sell your investment within a year) are taxed at 15%.
- For long-term capital gains (if you hold the investment for more than a year), the tax rate is 10%, without any inflation adjustment.
- Additionally, dividends received from the fund are taxed according to your income tax slab, and long-term gains up to ₹1 lakh are exempt from tax.
Investment Details
Minimum Investment and Lock-in Period
To invest in the Bajaj Finserv Flexi Cap Fund Direct Growth, the minimum investment amount for a lump sum payment is ₹500.
However, if you wish to do a Systematic Investment Plan (SIP), it is also ₹500. One of the appealing features of this fund is that it has no lock-in period. This means you have the flexibility to withdraw money whenever you choose.
Calculate your returns on Bajaj Finserv Flexi Cap Fund Direct Growth SIP with SIP calculator now!
Exit Load
- If you redeem or switch units within 6 months of buying them:
- If you sell or switch out up to 10% of your total units, there’s no charge (Nil).
- If you sell or switch out more than 10% of your total units, you will pay a fee of 1% based on the current value (NAV) of those units.
- If you redeem or switch units after 6 months:
- There are no charges (no exit load) for selling or switching out your units.
This means you can redeem a small portion of your investment without any cost if done within the first six months. If you decide to sell more than that, just keep in mind the 1% fee applies. After six months, you can redeem it without any charges!
Investing in Lump Sum Mutual Funds Through the Shoonya Web Platform
Shoonya is a must-use investment platform, offering access to a free Demat account with zero AMC, advanced trading tools, and much more!
Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:
- First, you must log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
- Search for the fund you wish to invest in; in this case, Bajaj Finserv Flexi Cap Fund Direct Growth Plan.
- Choose “Fresh” for a new investment and enter the amount you want to invest.
- You can complete your purchase by clicking the “Purchase” button.
- A payment link will be sent to your registered email. Use the link to make the payment.
After payment, your Bajaj Finserv mutual fund units will be allotted to your Demat account within T+2 days.
Note: You can only make the payment using the bank account registered with your Demat account.
Setting Up an SIP for Mutual Funds
If you prefer a Systematic Investment Plan (SIP) for Bajaj Finserv Flexi Cap Fund Direct Growth Plan, follow these steps:
- First, you neet to log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
- Find the mutual fund for which you want to set up an SIP. In this case, select Axis Arbitrage Fund – Direct Growth.
- If this is your first SIP with Shoonya, you need to create a Mandate ID. Enter the Mandate amount and the validity date (until when you want to keep your Bajaj Finserv Flexi Cap Fund SIP active).
- You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.
Once your Mandate is approved, you can follow these steps to set up your SIP:
- Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
- Choose the date when the SIP will be debited directly from your registered bank.
- The approved Mandate ID will auto-reflect.
- Choose “Monthly” for monthly debits and specify the number of installments (e.g., 24 installments for a 2-year SIP).
This process will help you invest systematically with ease.
Flexi Cap Mutual Fund
A flexi cap mutual fund invests in stocks of companies of all sizes. This strategy allows the fund to take advantage of growth opportunities in smaller and mid-sized companies. Additionally, also benefiting from the more stable performance of large-cap companies.
There are no strict rules on how much money must be allocated to each type of company. This gives the fund manager the flexibility to adjust the investment portfolio based on their growth strategy.
Flexi cap funds are suitable for investors looking for long-term capital growth and who are comfortable with higher risks.
FAQs| Bajaj Finserv Flexi Cap Fund Direct Growth
The Bajaj Finserv Flexi Cap Fund – Direct Plan is a type of mutual fund that must invest at least 65% of its money in stocks (equity) at all times.
Flexi-cap funds must invest at least 65% of their assets in equity and related instruments. This allows the fund managers with the flexibility to shift investment allocations across large, mid, and small-cap stocks.
The NAV (Net Asset Value) of the Bajaj Finserv Flexi Cap Fund – Direct Plan is ₹14.7540 as of October 21, 2024.
The AUM (Assets Under Management) of the Bajaj Finserv Flexi Cap Fund – Direct Plan is ₹3,883 crore as of September 30, 2024. This means the total value of all the money invested in the fund.
The riskometer level of the Bajaj Finserv Flexi Cap Fund – Direct Plan is Very High. This means the fund can be quite risky, and the value of your investment can change a lot.
The top companies the Bajaj Finserv Flexi Cap Fund – Direct Plan includes HDFC Bank: 7.65%, Hindustan Unilever: 5.50%, Tata Consultancy Services: 4.46%, Reliance Industries: 4.05% and Divi’s Laboratories: 3.97%.
Source: ValueResearch
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.