A quick look at the investment process of Bajaj Finserv Large and Mid Cap Fund
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A quick look at the investment process of Bajaj Finserv Large and Mid Cap Fund

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A quick look at the investment process of Bajaj Finserv Large and Mid Cap Fund

Bajaj Finserv Asset Management Limited has recently introduced an open-ended equity scheme named Bajaj Finserv Large and Mid Cap Fund, signalling an innovative approach to investment through its unique moat investing strategy. This strategy revolves around identifying and capitalizing on economic moats, providing investors with a distinctive edge in the market.

A quick look at the investment process of Bajaj Finserv Large and Mid Cap Fund
Bajaj Finserv Large and Mid Cap Fund

Understanding moat investing

What is moat investing

In the world of finance, moat investing refers to a strategic approach where investors focus on companies with sustainable competitive advantages, much like a castle protected by a moat. An economic moat, in this context, signifies a distinct set of attributes that strengthen a companys position in the market, defending it from competition. Bajaj Finserv Large and Mid Cap Fund employs this strategy to select stocks that exhibit resilient qualities, ensuring potential long-term growth.

Economic moat

An economic moat encompasses various factors that contribute to a companys competitive advantage. High pricing power, leadership within its segment, exceptional management quality, and a track record of innovative offerings are key elements. Companies with these attributes are better positioned to withstand market pressures, making them attractive investment opportunities.

Investment process of Bajaj Finserv Large and Mid Cap Fund

Diverse investment universe: The funds investment universe comprises a mix of large-cap and mid-cap stocks, providing a balanced portfolio that captures opportunities across market segments.

Economic moat filter: To finalize the stocks, Bajaj Finserv Large and Mid Cap Fund employs an economic moat filter. This filter rigorously analyzes potential investments based on their pricing power, leadership status in their segment, management quality, and history of innovation. Companies passing through this filter are deemed to possess sustainable competitive advantages.

InQuBe philosophy: Bajaj Finserv AMC incorporates the InQuBe philosophy, standing for Informational Edge, Quantitative Edge, and Behavioral Edge. These three pillars form the foundation of their investment approach.

Informational edge: The fund seeks an informational edge by leveraging in-house research capabilities and staying abreast of market trends. This ensures that the fund managers have access to comprehensive and precise information for making informed investment decisions.

Quantitative edge: Utilizing quantitative analysis, the fund aims to gain an edge in identifying potential investment opportunities. This involves sophisticated modelling and analysis to assess various financial metrics and market trends, enhancing the funds ability to make data-driven decisions.

Behavioral edge: Acknowledging the impact of human behaviour on market dynamics, Bajaj Finserv Large and Mid Cap Fund considers the behavioural aspect in its investment strategy. This involves understanding market sentiments, investor behaviour, and psychological factors that can influence stock prices.

Final portfolio

The culmination of the stock selection process results in a final portfolio comprising 40-60 stocks. This carefully curated portfolio is designed to offer investors exposure to a diverse range of companies, striking a balance between relative stability and growth opportunities.


The innovative approach of Bajaj Finserv Large and Mid Cap Fund blends the principles of moat investing with a robust investment process. By considering economic moats and integrating the InQuBe philosophy, the fund aims to deliver reasonable returns to investors. This strategy not only emphasizes the importance of competitive advantages in company selection but also highlights the significance of comprehensive research, quantitative analysis, and an understanding of behavioural dynamics in the ever-evolving financial landscape.

Investors looking for a well-rounded investment vehicle with a strategic focus on economic moats and a disciplined investment process may find Bajaj Finserv Large and Mid Cap Fund to be a suitable choice in the dynamic world of mutual fund investments. You can start an SIP investment in this scheme by visiting the investor portal of Bajaj Finserv AMC.

NFO details:

NFO period: 6th Feb 2024 to 20th Feb 2024

Type of scheme: An open ended equity scheme investing in both large cap and mid cap stocks.

Plans: Bajaj Finserv Large and Mid Cap Fund – Direct Plan

Bajaj Finserv Large and Mid Cap Fund – Regular Plan

Minimum Application Amount: Rs. 500 (Plus multiples of Re.1)

Minimum Additional Application: Rs. 100 (Plus multiples of Re.1)

Entry Load: Not Applicable

Exit Load: 10% of units up to six months from allotment – Nil

Above 10% of units within six months from the allotment – 1% of applicable NAV

More than six months from the allotment – Nil

Benchmark: Nifty Large Midcap 250 TRI

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

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