Bajaj Finserv Asset Management Ltd. (BFAML) has introduced the Bajaj Finserv Small Cap Fund, an open-ended equity scheme targeting fundamentally strong small-cap companies. The New Fund Offer (NFO) opens on June 27 and closes on July 11, 2025. Positioned with a 3-in-1 advantage—quality, growth, and value—the fund seeks to capitalise on the recent correction in small-cap stocks.
Currently, over 80% of small-cap firms have posted 38% profit growth and solid return ratios, yet many continue to trade 15–45% below their 52-week highs. The fund’s approach includes a rigorous filtering process, narrowing down over 1,100 stocks to a curated portfolio of 40–100 high-potential businesses. The strategy also benefits from broader economic trends such as the ‘Make in India’ initiative and ongoing digital transformation.
Financial advisors report growing investor interest in small-cap opportunities, especially among younger investors looking for high-growth potential. The fund’s low minimum application of ₹500 and its active management model are seen as key factors attracting retail participation in the region. The fund will be managed by Nimesh Chandan, Sorbh Gupta, and Siddharth Chaudhary, and is benchmarked against the BSE 250 SmallCap Index TRI.