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This forward-looking vision is at the heart of the Bajaj Finserv Flexi Cap Fund’s investment strategy. The project stands out for its MEGATRENDS approach, which involves investing in powerful forces that can drive fundamental and lasting changes in economies and societies.

This article tells you more about Bajaj Finserv Flexi Cap Fund and tips for maximizing return potential when investing.

What are flexi cap funds?

Flexi cap funds are equity UCITS that can invest in listed companies of all sizes: large, mid and small caps. These funds are dynamically managed, meaning they can freely adjust portfolio allocation based on changing market conditions. No minimum allocation must be maintained for each market capitalization, meaning fund managers can respond flexibly to changing market conditions and seek to capitalize on opportunities across different sectors and company sizes.

This diversified approach can help reduce risk and maximize return potential.

Investing in MEGATRENDS

One of the key strategies of the Bajaj Finserv Flexi Cap Fund is investing in megatrends. Megatrends are powerful, long-term changes in economics, technology and society that have a lasting impact. Examples include digitalization, artificial intelligence, renewable energies, urbanization, etc. These changes can last for years or even decades, providing substantial growth potential for investors who can take advantage of them quickly.

The Bajaj Finserv Flexi Cap fund seeks to identify these future winners and invest in companies positioned to benefit from these megatrends.

How to maximize your return potential with the Bajaj Finserv Flexi Cap Fund

Although returns depend on market conditions and the fund manager’s approach, here are some steps you, as an investor, can take to get the most out of your investment strategy.

1. Opt for SIP recharge

One of the easiest ways to invest in mutual funds is through a systematic investment plan (SIP). SIPs allow you to invest a fixed amount regularly (daily, weekly, monthly, quarterly, etc.), helping you build wealth over time through affordable installments.

If you are young or starting with a small investment, a top-up SIP can be beneficial. This feature increases your SIP contributions by a fixed amount at regular intervals, allowing you to gradually and automatically invest more as disposable income increases. This is especially relevant if you receive a salary increase every year. You can use a SIP recharge calculator to decide the top-up amount.

For example, you can choose a 10% annual top-up, where your SIP amount will increase by 10% every year.

2. Stay disciplined during market volatility

Market ups and downs are part of the investing journey, and it can be tempting to panic during downturns. However, remaining disciplined and sticking to your investment plan is essential to maximizing return potential. Reacting to short-term market fluctuations by redeeming or switching funds may result in losses.

3. Focus on long-term wealth creation

The Bajaj Finserv Flexi Cap Fund is designed for long-term investors. The fund’s strategy of investing in megatrends is designed to exploit growth over a longer period of time.

A long-term investment horizon can mitigate the impact of temporary market downturns and volatility. Additionally, it allows your investments to benefit from the power of compounding, which can significantly increase your returns over time. Compounding occurs when the returns from an investment are reinvested, potentially earning additional returns.

The key is to stay focused on your financial goals and give your investments enough time to grow.

4. Monitor and review your investments regularly

It is important to review your investments regularly. Check the fund’s performance against its benchmarks and peers and see if it matches your financial goals. However, consider the fund’s performance over multiple cycles to make a complete assessment, as outperformance or underperformance in a single year or market cycle does not provide the complete picture.

5. Align your investments with scalable goals

As financial goals and life circumstances change over time, it’s important to regularly review and adjust your mutual fund investments to stay in step with these changing needs. For example, early in your career you may only have a small amount to invest. As your income increases, you can consider increasing your SIP amount. As you develop new goals, such as buying a home, family planning, etc., you can revisit your investments to effectively support your financial goals.

Investments in mutual funds are subject to market risks. Read all mutual fund documents carefully.

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