Bajaj Finserv Small Cap Fund launched: All you need to know

Bajaj Finserv AMC has launched the Bajaj Finserv Small Cap Fund, An open ended equity scheme predominantly investing in small cap stocks. The fund aims to tap into the long-term growth potential of emerging businesses across sectors.

With a 3-in-1 approach, the fund focuses on Quality, Growth and Value. It is backed by a robust investment framework and research-driven selection process.

The New Fund Offer period begins today, i.e. on June 27^th, 2025, and is on till July 11^th, 2025.

Why invest in small caps?

As per SEBI’s classification, small cap companies are businesses that rank 251^st and beyond on the stock exchanges on the basis of market capitalisation. These companies often function in niche markets or emerging sectors and can offer higher growth potential in the long run.

Small cap funds allow investors to uncover opportunities across India’s growing industries. Over the last four years, small caps have outpaced large and mid-caps in profit contribution, growing up to 2.5X faster. (Source: Ace Equity. Data as on Dec 31, 2024)

The small cap segment also offers investors a diverse landscape for investment across industries and themes. This aligns with India’s evolving economic landscape.

Why invest in small caps now?

Many small cap companies continue to deliver growth potential and maintain suitable return ratios. This presents an opportunity for investors to explore the small cap space through a well-managed fund.

About Bajaj Finserv Small Cap Fund

With a 3-in-1 alpha strategy, the Bajaj Finserv Small Cap Fund combines:

• Quality: Investing in companies with sound fundamentals and competitive advantages
• Growth: Focusing on businesses with high scalability potential
• Value: Targeting stocks trading below their intrinsic worth

This approach, coupled with Bajaj Finserv AMC’s proprietary INQUBE framework combining top-down macro trends, bottom-up stock selection, and behavioural insights, helps build a high-conviction portfolio.

The five pillars of the fund’s strategy

The fund’s portfolio construction rests on five key pillars:

Quality – Focus on businesses with strong fundamentals and consistent earnings

Growth – Companies with scalable, long-term business models

Undervalued opportunities – Stocks that are fundamentally strong but currently below their intrinsic value

Leadership – Emerging category leaders in micro-segments

Governance – Preference for transparent, well-managed companies with aligned promoter interests

Plan investments in small caps

You can start your investment journey into the small caps sector through either a lumpsum investment or a Systematic Investment Plan. An SIP offers a simple way to invest fixed amounts at regular intervals, reducing the need for investors to time the market while also building long-term investment discipline. You can make use of an SIP calculator to get a better understanding of the future value of your investments.

Through an SIP plan, you can gradually build exposure to small caps, benefit from rupee cost averaging, and potentially take advantage of compounding over time, especially when investing with a long-term horizon.

How to invest

You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. Investments can be made directly or through regular plans. To learn more about the investment process, visit www.bajajamc.com. Units will be available at an offer price of Rs. 10 during the NFO period (June 27, 2025 – July 11, 2025).

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

Moneycontrol Journalists are not involved in creation of this article.