Bajaj Finserv AMC Launches Small Cap Fund with a 3-in-1 Advantage: Quality, Growth & Value

 The fund takes a 3-In-1 advantage towards stock selection, delivering on quality, value and
growth.
 The fund focuses on quality companies with strong fundamentals and sustainable competitive
advantages, and value opportunities in businesses trading below intrinsic worth due to
temporary market mispricing.
Mumbai/ Pune, 25 June 2025: Bajaj Finserv AMC announces the launch of Bajaj Finserv
Small Cap Fund, an open-ended equity scheme predominantly investing in small cap stocks,
that offers quality, growth and value. The fund opens for subscription on June 27, 2025, and
closes on July 11, 2025.
The recent correction in small caps presents a compelling entry point for long-term investors.
Even though over 80% of small-cap companies have posted strong profit growth of 38% and
solid return ratios, most of them are still trading 15–45% below their 52-week highs. This
recent market correction has opened up a clear gap between the true value of these
companies and their current market prices.
Coupled with structural tailwinds such as the 'Make in India' push, rising formalisation, and
digital transformation across sectors, small caps are well-positioned to benefit
disproportionately in the next growth cycle, making this an attractive investment opportunity.

Bajaj Finserv Small Cap Fund is designed for investors aiming to build long-term wealth by
investing primarily in equity and equity-related instruments of small cap companies.
It goes beyond selecting quality stocks by rigorously filtering out companies with weak
governance, inconsistent fundamentals, or financial red flags. This disciplined approach
narrows the universe of over 1,100 small-cap stocks to a focused set of high-potential
businesses. A key part of the process is our internal forensic and risk-aware analysis, which
filters out companies with weak governance or financial red flags. From a universe of around
300-400 small-cap stocks, this disciplined approach narrows the selection to a portfolio of
40–100 carefully chosen businesses
Speaking on the launch, Ganesh Mohan, Managing Director, Bajaj Finserv AMC says,
“The launch of Small Cap Fund reflects our deep conviction in the long-term potential of
India’s dynamic small cap universe. Small caps typically exhibit higher volatility than broader
indices, underscoring the importance of active management in navigating market fluctuations
and identifying quality opportunities. The strategy is built around discovering high-quality
companies in the early phases of growth that are positioned to outperform over time. With
the recent small cap correction, the NFO is poised to take advantage of this golden
opportunity, enabling investors to participate in long term wealth creation as these
businesses scale and contribute meaningfully to the economy.”
Bajaj Finserv Small Cap Fund is well-suited for those looking to benefit from the growth
potential of fundamentally strong businesses that are currently trading below their intrinsic
value.  It also appeals to investors who want to diversify their portfolios by adding small-cap
stocks with growth prospects. The fund is benchmarked to the BSE 250 SmallCap Index
TRI.

Nimesh Chandan, Chief Investment Officer, Bajaj Finserv AMC adds,” Our new
small cap fund will be a portfolio of quality businesses with scalability that trade
below their intrinsic value. Many industries and subsectors are available exclusively
in the small cap category. In essence, there are opportunities to pick up leaders in
emerging businesses and challengers in others from this small cap space. The NSE
small cap 250 Index is almost flat year on year. However, many companies
generated strong profit growth last year. This allows us to invest in those small cap
companies at valuations lower than last year after this time correction.”
Bajaj Finserv AMC has demonstrated proven expertise in managing small-cap investments,
with exposure to 78 unique small cap stocks across three differentiated strategies—Growth
(Megatrends), Quality (Moat Investing), and Value (Contrarian). Reflecting its conviction in
the segment, the AMC has increased its strategic allocation to small caps across its
portfolios. Notably, the small cap allocation in the Bajaj Finserv Flexi Cap Fund rose from
21.8% in January 2025 to 26% in May 2025, while in the Bajaj Finserv Large and Mid Cap
Fund, the allocation increased to 9% over the same period.
The equity portion of the fund will be managed by Mr. Nimesh Chandan, CIO & Mr. Sorbh
Gupta, Head - Equity, and the debt portion by Mr. Siddharth Chaudhary, Head – Fixed
Income.
The minimum application amount is ₹500 (Plus multiples of Re.1), with a minimum additional
application of ₹100 (Plus multiples of Re.1). An exit load of 1% is applicable if the investment
is redeemed within six months of the date of the allotment. The fund offers both Growth and
IDCW (Income Distribution cum Capital Withdrawal) options.
BAJAJ FINSERV SMALL CAP FUND
An open ended equity scheme predominantly investing in small cap stocks
Product label
This product is suitable for investors who are seeking*:
 wealth creation over long term
 to invest predominantly in equity and equity related instruments of small cap
companies.
*Investors should consult their financial advisers if in doubt about whether the product is
suitable for them

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