Bajaj Finserv Asset Management Ltd. (BFAML) has launched the Bajaj Finserv Small Cap Fund—an open-ended equity scheme focusing on small-cap stocks. The fund opens for subscription on June 27 and closes on July 11, 2025.
The fund leverages a 3-in-1 advantage strategy—targeting quality, growth, and value—at a time when over 80% of small-cap companies have reported 38% profit growth but still trade significantly below their 52-week highs. This pricing mismatch, triggered by market correction rather than fundamentals, provides a strong entry point for long-term investors. The fund’s investment process involves rigorous forensic screening and governance checks to narrow over 1,100 small-cap stocks down to a focused portfolio of 40–100.
Economically, this launch is timely. Small caps are positioned to benefit from India’s “Make in India” push, rising formalisation, and sector-wide digitalisation. Local investment advisors see a growing appetite among retail investors for small-cap exposure, drawn by low entry points and higher growth potential. Bajaj Finserv’s reputation and ₹500 minimum investment make it an accessible and appealing option in this key regional market. The fund is benchmarked to the BSE 250 SmallCap Index TRI.
