CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: Today marks the last day to participate in the Bajaj Finserv Multi Cap Fund NFO, which has been open from February 6, 2025, and closes on February 20, 2025. This is a suitable opportunity for investors who are looking for a relatively different approach to investing. The Bajaj Finserv Multi Cap Fund follows a contrarian investment strategy that aims to uncover opportunities in undervalued stocks, offering long-term growth potential.
Here’s everything you need to know about this innovative equity product and why you should consider investing in it.
What is the Bajaj Finserv Multi Cap Fund?
The Bajaj Finserv Multi Cap Fund is a newly introduced equity fund that primarily focuses on finding undervalued stocks in the market. It aims to take a different approach from the typical market strategies, instead looking for opportunities that other investors might overlook. The strategy followed by this fund is contrarian investing, where the fund aims to find hidden gems during times when the market sentiment is negative or uncertain. Rather than following market trends, it seeks to purchase stocks that are temporarily undervalued but have the potential for significant long-term growth once the market corrects itself.
How does the Bajaj Finserv Multi Cap Fund Work?
The working of the Bajaj Finserv Multi Cap Fund is driven by its contrarian investment philosophy. Here’s how it operates:
Spot the market trend: The fund managers first assess the market sentiment to understand whether there is excessive optimism or undue pessimism. This helps identify the market’s emotional state and allows them to spot when it might be a suitable time to go against the trend.
Identify mispriced stocks: Once the trend is understood, the fund managers look for stocks that are being sold off due to short-term fears or negative news. They focus on companies whose stock prices are temporarily undervalued and do not reflect their long-term potential.
Invest in undervalued stocks: After identifying these mispriced stocks, the fund buys them at a discounted price. The belief is that, over time, the market will recognize the intrinsic value of these companies, leading to an increase in stock prices.
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