Amid Market Volatility, Think Long-term with Bajaj Finserv Flexi Cap Fund

Market ups and downs can be unsettling, but does that mean you should stop investing Not necessarily.

Bajaj Finserv Flexi Cap Fund with Megatrends

The key to navigating market uncertainty is to think long-term. And that’s where Bajaj Finserv Flexi Cap Fund comes in. With its megatrends approach, this fund looks away from short-term noise to focus on companies that have the potential to grow in the long run.

This article tells you more about the Bajaj Finserv Flexi Cap Fund, its investment approach, and how a long-term view can help you tide over short-term volatility.

What are flexi cap funds
Unlike funds restricted to a particular market segment, flexi cap funds have the flexibility to invest across large cap, mid cap, and small cap stocks. What’s more, they are dynamically managed, meaning that they can adjust the portfolio allocation to each market capitalisation based on market conditions.

During bear markets, for example, they can increase the allocation to small and mid caps to capture upside potential. During slowdowns, they can invest more in large caps to reduce downside risk, as large caps tend to be more resilient amid volatility owing to their large market share and strong fundamentals.

This approach allows such funds to capture growth opportunities across different segments while mitigating risk.

Volatility and investing
Market volatility is a part of investing. There will always be phases of highs and lows – sometimes brief and sometimes prolonged – but markets have historically* tended to recover and grow over time (*Past performance may or may not be sustained in the future).

So, if you are investing for the long run, short-term fluctuations need not be your primary concern. What’s more important is consistency, discipline and a long-term vision.

These traits are encapsulated by the Bajaj Finserv Flexi Cap Fund with its megatrends investing strategy.

What are megatrends
Megatrends are long-term shifts that can have wide-ranging impacts on global industries, economies and societies. Think of digitisation, clean energy, demographic changes and much more. Companies that align with such megatrends have the potential to grow for years, making them potentially suitable investment choices.

Here are the megatrends that form a part of the Bajaj Finserv Flexi Cap Fund portfolio:

• Technological megatrends: Advancements in AI, automation, and innovation are transforming industries, creating investment opportunities in leading tech companies.

• Regulatory megatrends: Government initiatives like Make in India and PLI schemes are driving growth in renewable energy, pharma, and electronics, benefiting companies that align with these policies.

• Economic megatrends: The shift towards China+1, de-globalisation, urbanisation and more are positioning India as an investment destination, with initiatives such as Production Linked Incentive scheme and Make in India boosting domestic manufacturing opportunities.

• Nature megatrends: Sustainability is shaping industries, driving growth in eco-friendly sectors like organic farming and green packaging, benefiting ESG-focused investments.

• Demographic megatrends: India’s expanding middle class and young population are increasing demand for healthcare, consumer goods, and urban infrastructure, creating long-term investment potential.

• Social megatrends Changing lifestyles, digital connectivity, and rising health awareness are fuelling growth in e-commerce, digital media, and health tech, offering key investment opportunities.

While economic slowdowns, negative market sentiment and bear markets can impact these trends in the short-term, their lasting significance gives them potential to yield sustained growth over time.

Early identification and investment in these evolving trends can position investors for long-term success as market dynamics and economic behaviour evolve.

Why a long-term mindset matters
Short-term market swings can tempt you to make impulsive decisions, but investing is a marathon, not a sprint. A long investment horizon helps you potentially tide over temporary volatility. Moreover, the longer you stay invested, the more you can potentially benefit from the power of compounding.

Additionally, those investing through Systematic Investment Plans can potentially leverage market downturns through rupee cost averaging. Since you invest a fixed amount regardless of market conditions, your SIP contributions purchase more units when markets are down and fewer when they are up. Those, you can potentially capitalise on market dips and avoid overweighting your portfolio during market peaks.

This can reduce the per-unit cost of your investment over time and optimise return potential while mitigating market timing risk.

Should you invest in Bajaj Finserv Flexi Cap Fund
If you are looking for a fund that:

• Invests in companies with strong long-term potential

• Has the flexibility to navigate different market conditions

• Focuses on megatrends that drive economic growth

• Doesn’t change short-term gains and instead looks at long-ranging ideas with strong growth potential over time.

If this appeals to you, consider investing in Bajaj Finserv Flexi Cap Fund. SIP and lumpsum options are both available with lumpsum starting from Rs. 500 and SIP starting from Rs. 500 up to Rs. 1,000 with minimum 60 instalments and above Rs. 1,000 with minimum 6 instalments. You can use mutual funds tools such as lumpsum or SIP return calculators to understand how your investments can potentially grow over time and plan your approach.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.