Bajaj Finserv Multi Cap Fund NFO Review: Why Best for You?

• 278
• 

Did you hear about the newly launched Bajaj Finserv Multi Cap Fund NFO under the multi cap mutual funds? Yes, it started its subscription on 6 February and will close on 20 February 2025, so why wait?

This reminds me of a very famous quote by Warren Buffett: "Most people get interested in stocks when everyone else is, but the time to get interested is when no one else is."

Taking this as an inspiration, this new NFO is made up of a unique investing style, contrarian investing. It is as old as investing itself, which goes against the market trends to find undervalued opportunities and make the best returns out of it.

This post gives the Bajaj Finserv Multi Cap Fund NFO Review to help you figure out why it could be the best NFO in 2025.

Bajaj Finserv Multi Cap Fund NFO: Basic Details

Here are the key information about the newly launched Bajaj NFO 2025:

Must Know: Why Investing in an NFO is Such a Great Idea?

Investment Strategy of Bajaj Finserv Mutual Fund

The successful investment philosophy adopted by the Bajaj Finserv Mutual Fund is their unique model, known as “INQUBE”. Here is what it means:

IN: Information Edge

QU: Quantitative Edge

BE: Behavioural Edge

You see, information edge speaks for investing in companies outperforming the market on superior information collection; quantitative edge involves processing information in a better way using quant models and analytics. Likewise, the behavioural edge leads to outperformance in the market through better decision-making and reduces your own behavioural pitfalls.

Now, let’s see what kind of investment approach the newly launched Bajaj NFO will use.

Contrarian Investing in Bajaj Finserv Multi Cap Fund NFO

The New Fund Offer, the Bajaj Finserv Multi Cap Fund, uses a unique investing strategy called contrarian investing.

What does contrarian mean in investment? Contrarian investing involves identifying market trends or investors' sentiments and betting against those odds.

For example, if the market buys, a contrarian investor sells, and vice versa.

As shown in the above graph, it captures full upside potential. Unlike pure contra funds, which exit stocks upon reaching intrinsic value (current market value), the latest Bajaj Finserv Multi Cap Fund will allow for sustained exposure, enabling your portfolio to reach the full growth wave.

Pro Trick: Getting fast returns by SIP Calculator is the smartest ladder to go up.

Why Contrarian Strategy in Multi Cap Fund?

The following are the key points that cover the importance of Bajaj Finserv Multi Cap Fund choosing a contrarian investing style:

1. Covers Diverse Contrarian Theme: A multi-cap fund using a contrarian strategy can capitalize on themes like the business cycle, special situations, turnarounds, and undervalued stocks. It ensures a holistic and diverse approach to investing.
2. Rule-based Allocation: The SEBI mandate of 25% allocation across large, mid and small caps will give a disciplined framework, providing equal opportunities to discover contrarian ideas across all market cap segments.
3. Maximizes Market Cycles: The multi cap strategy in mutual funds will ensure flexibility and alignment with evolving market dynamics. Whether it's undervalued large cap funds in a downturn or high-growth Small Cap Mutual Funds during recovery.
4. Superior Long Term Growth: This gives the ability to mix contrarian insights with disciplined exposure across market caps and positions multi cap mutual funds to deliver healthy long term turns, leveraging underpriced opportunities others may overlook.

Bajaj Finserv Multi Cap Fund NFO: Portfolio Creation Process

Looking at the picture below, you will see that the Bajaj Finserv Multi Cap Fund has 1150 universe stocks under it. This new NFO in Mutual Funds has distributed its money in the following manner:

• Large Cap:100 Stocks
• Mid Cap:150 Stocks
• Small Cap:900 Stocks
• Total Coverage:300-400 Stocks

Likewise, the portfolio for this new NFO will have 40-100 stocks, betting against the market with its contrarian investment approach and making high long-term returns.

Where Will the Bajaj Finserv Multi Cap Fund Invest?

The latest NFO of the Multi Cap Mutual Funds will target the following areas to make its investment:

1. Business Cycle Funds: By investing in the business cycle sector and companies that are positioned to benefit from cyclical economic upturns.
2. Management Transition: Backing companies undergoing leadership changes that drive better corporate governance and performance.
3. Underappreciated Growth Opportunities: This new NFO will uncover hidden growth drivers that the market has not yet fully priced in the market.
4. Commodity Cycle: The newly launched NFO by the Bajaj Finserv mutual fund plans to leverage cyclical movements in commodities from demand-supply imbalances.
5. Turnaround Stories: Identifying companies on the path to recovery through operational improvements or strategic initiatives.
6. Balance Sheet Deleveraging: Targeting firms to reduce debt levels, leading to stronger financial health and potential re-rating.
7. Business Restructuring: Investing in companies undergoing major restructuring changes to increase the efficiency and profitability of your investment.
8. Temporary Business Disruptions: Seizing opportunities in fundamentally strong businesses temporarily impacted by external factors.

Why Investing in Bajaj Finserv Bajaj Multi Cap Fund is Best For You?

Here are some interesting reasons to invest in this latest NFO 2025:

• The benefit of a contrarian strategy is investing in undervalued companies.
• Capitalizes on market sentiments and behavioural biases, identifying unique investment growth opportunities.
• Disciplined diversification across market caps and sectors.
• Aim to capture growth across all market segments without missing out on any possible area.

Who Should Invest in Newly Launched Bajaj Mutual Fund NFO?

This new NFO from the multi cap mutual funds is best suited for the following types of investors:

1. Investors aiming to invest in undervalued opportunities, capitalizing on earnings growth and valuation multiple re-rating.
2. Investors with a horizon of 5+ years to realize the full potential of contrarian opportunities.
3. Investors looking for sound investment opportunities in times of volatility.
4. Investors seeking a one-stop solution with disciplined exposure to large cap, mid-cap, and small caps.

Stock Exit Process: When Should You Plan to Sell?

Here are good insights on when to exit a stock is a good investment strategy:

1. After benefiting from an upside driven by positive news, the new NFO will exit once the market has fully priced in the news.
2. If the initial catalyst for value realization becomes unclear or is indefinitely delayed.
3. When a superior investment opportunity with greater potential upside emerges in the market.
4. Pre-commitment, aligning with pre-set investment goals and exit strategies defined at entry.

Secret Formula To: How to Make 1 Crore from SIP of Rupee 5000?

To Conclude on Bajaj Finserv Multi Cap Fund Review

In short, The Bajaj Finserv Multi Cap Fund NFO offers a smart way to invest in undervalued stocks across large, mid and small cap segments. It’s perfect for long-term growth, and with SIP (Systematic Investment Plan) starting at just Rs.500, you can build your wealth gradually. This is your chance to power up your 2025 portfolio now.