Bajaj Finserv Multicap Fund: Leverage combined power of multicap and contrarian investing

What are multi cap funds?

Multi Cap funds invest in equity and equity related instruments across various market capitalisations. As per SEBI guidelines, these funds must allocate a minimum of 25% each to large cap mid cap and small cap stocks. This diversification helps spread risk and navigate periods of market volatility more effectively.

Why Multicap Funds?

• Winners rotate across industry sectors: Sector rotation is an active investment strategy and a characteristic of our equity markets. The graphic below shows that winners rotate across industry sectors. A portfolio diversified across industry sectors will capture winners.
  
  

  

  Source: NSE, Advisorkhoj Research, as of 31^st December 2025.



• Winners rotate across market cap segments: One market cap segment does not outperform always. Winners rotate across market cap segments in different market phases (see the chart below). Multicap strategy will enable you to capture winners across market phases.
  
  

  

  Source: NSE, Advisorkhoj Research, as of 31^st December 2025. Large cap is represented by Nifty 100 TRI; Midcap is represented by Nifty Midcap 150 TRI and Small cap is represented by Nifty Small Cap 250 TRI.



• Mid and small caps experience deeper drawdowns compared to large caps: The chart below shows the drawdowns of different market cap segments over the last 20 years. You can see that large caps experience smaller drawdowns compared to midcaps and small caps.
  
  

  

  Source: NSE, Advisorkhoj Research, as of 31^st December 2025. Large cap is represented by Nifty 100 TRI; Midcap is represented by Nifty Midcap 150 TRI and Small cap is represented by Nifty Small Cap 250 TRI.



• Small / midcaps can outperform large caps: The chart below shows the 3-year rolling returns of large caps, midcaps and small caps benchmark indices over the last 20 years. You can see that small cap and midcaps outperform in bull market phases.
  
  

  

  Source: NSE, Advisorkhoj Research, as of 31^st December 2025. Large cap is represented by Nifty 100 TRI; Midcap is represented by Nifty Midcap 150 TRI and Small cap is represented by Nifty Small Cap 250 TRI.



• Multicap strategy provides more balanced exposure across market cap segments: The minimum 25% allocation mandate across market caps ensures a more balanced market exposure compared to broader market index (see the charts below).
  
  

  

  Source: AMFI, NSE, Advisorkhoj Research, as of 31^st December 2025.



• Multicap strategy can tap investment opportunities spread across market cap segments: The chart below shows the distribution of Top 500 companies by market cap across different industry sectors. You can see that large caps dominate certain sectors e.g. utilities, while in other sectors more investment opportunities could be found in midcap and small cap segments.
  
  

  

  Source: NSE, Advisorkhoj Research, as of 31^st December 2025.

Contrarian Investing in Multi Cap Funds

What is contrarian investing?

How does contrarian investing work?

• Identify market trends or sentiments


• Look for discrepancies between market sentiment and fundamentals


• Identify stocks where the price deviates significantly from intrinsic value


• Invest against prevailing sentiment


• Sell or adjust when sentiment aligns with the asset's true value

Why contrarian investing in multicap fund

The Bajaj Finserv Multi Cap Fund

The Bajaj Finserv Multi Cap Fund follows a contrarian investment approach. The fund focuses on identifying fundamentally strong companies that may be temporarily out of favour due to negative sentiment or near-term challenges

Investment focus areas Bajaj Finserv Multicap Fund

Current portfolio positioning- Equity

Source: Bajaj Finserv MF, Advisorkhoj Research, as of 31^st December 2025* (Debt Cash and Other allocation has been excluded from the chart)

Source: Bajaj Finserv MF, Advisorkhoj Research, as of 31^st December 2025

Why invest in Bajaj Finserv Multicap Fund?

Who can find Bajaj Finserv Multicap Fund suitable?

• Investors are looking for long term capital appreciation


• Investors who want balanced exposures to all market cap segments in a single fund


• Investors aiming to invest in undervalued opportunities, capitalizing on earnings growth and valuation re-rating.


• Investors looking for sound investment opportunities in times of volatility


• Investors with very high risk appetites


• Investors with minimum 5-year investment horizons

Investors should consult with their financial advisors or mutual fund distributors if Bajaj Finserv Multicap Fund is suitable for their investment needs.