Bajaj Finserv Flexi Cap Fund Ends First Year with 41.3%* Returns

The first equity fund to be launched by Bajaj Finserv AMC, the Bajaj Finserv Flexi Cap Fund in its inaugural year delivered returns of 41.30%* under the regular plan and 43.43%* under the direct plan.

The Bajaj Finserv Flexi Cap Fund follows the MEGATRENDS strategy

This robust performance was driven by Bajaj Finserv Flexi Cap Fund‘s future-focused MEGATRENDS strategy, which helped the fund tide over temporary fluctuations and deliver relatively consistent growth.

True to its label, the Bajaj Finserv Flexi Cap Fund has maintained diversified allocation across market capitalisations. Despite the dynamic investment strategy, it has sought to maintain a low turnover ratio, focusing on long-lasting trends rather than brief ups and downs.

To potentially achieve market-beating returns in the long-term, the fund has a high active share – which measures the degree of deviation between the composition of the benchmark index and the fund’s portfolio. This has helped it achieve more than 40% growth while maintaining an average beta of less than one, implying that the fund’s performance has been less volatile than that of the broader market.

This far-sighted view towards investing is at the heart of the megatrends approach, which seeks to identify potential future winners that have the potential to provide significant growth in the long term, even as other short-term waves may come and go.

What are megatrends

Megatrends are powerful, long-term shifts that have a marked impact on economies, industries, and societies. These trends are typically global in nature and influence a wide range of sectors over an extended period, often spanning decades. Megatrends shape the future by driving changes in how we live, work, and interact with the world.

Investing in megatrends offers several potential benefits. These include:

• Long-term growth potential: Megatrend investing focuses on changes that are expected to persist and continue to grow for years or decades, offering the potential for substantial returns in the long term.

• Alignment with future developments: By investing in megatrends, you align your portfolio with the shifts in technology, demographics, and global markets, positioning yourself to benefit from future innovations and changes.

• Diversification opportunities: Megatrend investing often spans multiple industries and sectors, providing opportunities to diversify your portfolio and reduce risk by spreading investments across various growth areas.

• Resilience in changing markets: Companies and industries aligned with megatrends are often more resilient to market fluctuations, as they are supported by strong, enduring forces that drive demand and growth.

• Early-mover advantage: Investing in megatrends early allows you to capitalise on emerging opportunities before they become mainstream.

Some common examples of megatrends include:

1. Technological innovation: Advances in technology, such as artificial intelligence, robotics, automation and Internet of Things are transforming industries, creating new business models and altering lifestyles.

2. Regulatory changes: These include large-scale, long-term shifts in regulations, and policies that can significantly impact industries, economies, and societies. These trends may be driven by the need to address emerging challenges, protect public interests and adapt to evolving global standards. In the Indian context, regulatory megatrends include the growing emphasis on renewable energy and the push towards domestic manufacturing through initiatives such as Make in India and the Production Linked Incentive scheme.

3. Economic changes: The rise of emerging markets, India’s rapid growth and rising deglobalisation presents unique growth opportunities for India.

4. Nature conservation and sustainability: The growing focus on sustainability, climate change, and the transition to a low-carbon economy is driving changes in energy production, transportation, and consumption patterns.

5. Demographic shifts: Changes in population dynamics, such as increasing life expectancy, urbanisation and a growing middle class influence consumer behaviour, health sector and shape economic growth.

6. Social change: Shifts in societal values and norms, such as increased demand for equality, diversity, and social justice, are influencing corporate practices, consumer behaviour, and government policies.

The Bajaj Finserv Flexi Cap Fund’s megatrends strategy seeks to capitalise on known megatrends and identify upcoming ones to potentially generate sustainable long-term growth.

How to invest in Bajaj Finserv Flexi Cap Fund

You can invest in Bajaj Finserv Flexi Cap Fund both offline and online, directly through Bajaj Finserv Asset Management Ltd or through registered mutual fund distributors or aggregator platforms.

To invest online, visit www.bajajamc.com and click on the log in/register button on the home page. You can also click on ‘Invest Now’ on the Bajaj Finserv Flexi Cap Fund page.

On the investor portal, you can log in with your PAN details or sign up. A quick, straightforward and 100% digital journey will guide you through the investing process.

You can invest via lumpsum or Systematic Investment Plan (SIP). Lumpsum and SIP investments start at Rs. 500.

*Source: Internal Data As on 30^th August 2024 (Since Inception Annualized Return)

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