CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: Market fluctuations can be unsettling, but a flexible approach and a long-term view towards investing can help you navigate this uncertainty.
This is what the Bajaj Finserv Flexi Cap Fund seeks to do. This equity fund offers adaptability by investing across large cap, mid cap, and small cap stocks. Moreover, it is dynamically managed, so it can freely adjust its portfolio to capture opportunities and mitigate risk in different market conditions.
However, its defining feature is its megatrends approach, which involves identifying and investing in companies aligned with long-term and wide-ranging global trends and movements. Read on to learn more about the Bajaj Finserv Flexi Cap Fund and why it may be a suitable option in uncertain times.
What makes a flexi cap fund different?
Unlike other equity mutual funds, flexi cap funds are not restricted to a specific market capitalisation. They dynamically adjust allocations across large, mid, and small cap stocks, allowing fund managers to make the most of changing market trends.
Here are the features of large, mid and small cap stocks:
Large cap stocks: Established companies with a strong track record and relatively lower volatility.
Mid cap stocks: Companies in a growth phase, offering better potential returns in the long term but with higher risk.
Small cap stocks: Younger companies with high growth potential but significantly higher volatility.
The dynamic management style allows fund managers to modify the portfolio allocation based on market conditions, potentially optimising returns while mitigating risks. For instance, during falling markets, they can increase exposure to large caps to reduce downside risk. During rising markets, they can capture growth potential in the mid and small cap segments. This can help such funds achieve a more optimal risk-reward balance than funds focusing on a single market cap or following a static allocation approach.
What sets Bajaj Finserv Flexi Cap Fund apart?
Bajaj Finserv Flexi Cap Fund follows a megatrends-based investment strategy – a forward-looking approach that identifies large-scale economic, technological, and social shifts that have the potential to shape the future.
Megatrends are transformative forces that redefine industries and economies and the fund seeks to invest in companies that align with these trends. Identifying megatrends early can help the fund capitalise on their potential before they gain widespread market traction.
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