Bajaj Finserv Asset Management Ltd. is set to launch the Bajaj Finserv Large Cap Fund with the New Fund Offer (NFO) period opening on July 29, 2024, and closing on August 12, 2024. During this period, investors can subscribe to the scheme for the first time at the face value of Rs 10 per unit.
The fund will reopen for subscription after a few working days following the NFO closure, and units can then be purchased at the prevailing Net Asset Value (NAV).
Key Details of the NFO: Bajaj Finserv Large Cap Fund:
- Opening Date: July 29, 2024
- Closing Date: August 12, 2024
- Face Value: ₹10 per unit
- Minimum Investment: ₹500 (lump sum or SIP)
- Benchmark: NIFTY 100 Total Return Index (TRI)
Investment Strategy: The fund aims to generate long-term capital appreciation by investing in equity and equity-related securities of large-cap companies. It follows a concentrated strategy with a high active share and focuses on select 25-30 stocks.
Investment Options: Investors can invest through lumpsum or regular installments using a Systematic Investment Plan (SIP).
Minimum Investment: The minimum investment amount during the NFO period is Rs 500.
What is Large Cap Fund:
A large-cap fund is a type of equity mutual fund that invests primarily in stocks of large-cap companies. Large-cap companies are well-established businesses with a large market capitalization, typically over ₹20,000 crores. These companies are generally considered to be less risky than mid-cap or small-cap companies due to their stability and financial strength.
What are Benefits of Investing in Large Cap Funds?
- Stability: Large-cap funds are relatively stable compared to other types of equity funds, as they are less volatile and offer more predictable returns.
- Diversification: Large-cap funds invest in a diversified portfolio of large-cap stocks, which helps to spread risk and reduce the impact of any single stock’s performance.
- Long-term Growth Potential: Large-cap companies have a track record of delivering consistent growth over the long term, making large-cap funds suitable for investors with a long-term investment horizon.