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.
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.”
