SMALL CAP. GIANT POTENTIAL.

PRESENTING
BAJAJ FINSERV SMALL CAP FUND
An open ended equity scheme predominantly investing in small cap stocks

NFO PERIOD 27th Jun - 11th Jul, 2025

Give your investments the 3-in-1 advantage

Quality Growth Value

Companies with distinct Companies with Companies that present
competitive advantages high scalability potential intrinsic value opportunities
 ARE ALL RISKS BAD?

PRE-RISK PARALYSIS REWARD OF RISK

RISK ISN’T WHAT RISK: PERCEPTION vs. REALITY

MOST THINK IT IS
BEHAVIOURAL GAP
“Risk comes from not knowing what you’re doing.”
- Warren Buffet

RETURNS
Risk has long been perceived as the
enemy of investment success.
But in reality, risk is the necessary
ingredient that fuels returns.
Without risk, there is no reward. The key
lies in understanding, managing, and
leveraging risk rather than avoiding it. RISK

INVESTOR EXPECTATIONS REALITY

DON’T AVOID RISK JUST PREPARE FOR IT
RISK VS. SAFETY:
BUSTING SOME MYTHS
 SIZE DOESN’T ENSURE SAFETY,
BUSINESS QUALITY DOES
Collapse of a prominent retail player in supermarkets

WHY IT SEEMED TOO BIG TO FAIL: WHAT WENT WRONG: KEY RISKS IGNORED:
1,000+ stores across 321 cities (2017) ~99% wealth erosion High debt & excessive promoter pledging
₹24,116 crore market cap (2017) Stock corrected from Poor capital allocation & unchecked
peak: ~57% (CAGR from expansion
Nov-2017 to Aug-2024)

SOURCE: INTERNAL ANALYSIS, SCREENER

THIS SLIDE IS FOR ILLUSTRATIVE PURPOSES ONLY AND IS PROVIDED TO EXPLAIN THE CONCEPT OF RISK.
 FAMILIARITY DOESN’T ENSURE
SAFETY, GOVERNANCE DOES
Downfall of a major IT firm in India

WHY IT SEEMED TOO BIG TO FAIL : WHAT WENT WRONG: KEY RISKS IGNORED:
One of India’s top 5 IT firms ~95% wealth erosion Fabricated cash balances and
Constituent of Nifty 50 Index Stock corrected from ₹523.50 overstated revenues

Global presence with 50,000+ employees (May 2008) to ₹23.75 (Jan 2009) Promoter fraud involving accounting
manipulation

SOURCE: INTERNAL ANALYSIS, SCREENER

THIS SLIDE IS FOR ILLUSTRATIVE PURPOSES ONLY AND IS PROVIDED TO EXPLAIN THE CONCEPT OF RISK.
 BEING UNDERVALUED ISN’T ENOUGH,
GROWTH IS ESSENTIAL
Failure of an infrastructure finance company in India

WHY IT SEEMED AN WHAT WENT WRONG: KEY RISKS IGNORED:

ATTRACTIVE BUY:
Traded at a deep discount to book value Stock corrected from ₹137.10 Rising NPAs with limited
and perceived to be undervalued (Jul-2017) to ₹2.10 (Aug-2023) provisioning buffer
Positioned as a key lender in Stock delisted Complex financial structuring and
infrastructure A value trap, not a recovery story lack of transparency
Weak governance and regulatory
red flags

SOURCE: INTERNAL ANALYSIS, SCREENER

THIS SLIDE IS FOR ILLUSTRATIVE PURPOSES ONLY AND IS PROVIDED TO EXPLAIN THE CONCEPT OF RISK.
ANOTHER POPULAR MYTH:
SMALL CAP = RISK
HIGHEST MARKET CAP GROWTH — 5X IN 7 YEARS

LARGE CAP MID CAP SMALL CAP

100
300 281 100 92
88 90
90
250 80
%

80

CA 6%
.5
R

GR
70
14

.
27
70
A

CA .6%
C

200 60

GR
60

21
50
150 50
109 40 40
100 30 30
22
20 17
20
50 10
10

2017 2024 2017 2024 2017 2024

MARKET CAP IN (₹ LAKH CRORE)

SOURCE: AMFI; DATA AS ON DEC 31, 2024; CAGR OF 7 YRS TAKEN INTO CONSIDERATION IN THE GRAPH | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
 HIGHER LONG-TERM POTENTIAL IRRESPECTIVE OF
MARKET DIRECTION

RETURNS FROM PEAK RETURNS FROM TROUGH

RETURNS IN NIFTY 500 FROM 2018 TO 2025 RETURNS IN NIFTY 500 FROM 2020 TO 2025

50 64
44 70
NUMBER OF COMPANIES

NUMBER OF COMPANIES
40 60 51
50 46
30 38
25 40
20 30 24
12 20 17
10 6 11
5 10
2 0 0 1 1 1
0 0
25-50% 50-100% >100%
RETURN (CAGR %) RETURN (CAGR %)
LARGE CAP MID CAP SMALL CAP LARGE CAP MID CAP SMALL CAP

DATA FROM MAY 31, 2018 TO MAY 31, 2025 DATA FROM MAY 31, 2020 TO MAY 31, 2025

SOURCE: ACE EQUITY | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
CONTRIBUTION
TO MARKET CAP
GREW 1.4X IN CONTRIBUTION TO MARKET CAP
LAST 3 YEARS
DEC’21 DEC’24
Between Dec’21 and Dec’24, 14% 20%
small caps increased their
share in the total market
capitalization of all listed 17%
companies by 6%, 69% 61%
19%
outperforming mid caps (which
grew by 2%) and large caps
(which fell by 8%).

This underscores the growing

SMALL CAP MID CAP LARGE CAP
prominence of the small cap
segment and the expanding Contribution to market cap of all listed companies
opportunities it offers.

SOURCE: ACE EQUITY | DATA AS ON DEC 31, 2024 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
CONTRIBUTION
TO PROFITS
GREW 2.5X CONTRIBUTION TO PAT OF TOP 500 COMPANIES
IN LAST 4 YEARS
SEP’21 DEC’24
Between Sep’21 and Dec’24, 2.6% 6.4%
small caps saw their share in 19.8%
India’s corporate earnings 22.6%
expand by 2.5x,
far outpacing mid caps (which
expanded by 1.1x) and large
caps (which expanded by 0.9x).
77.6% 71.0%
This sharp earnings delta
highlights the accelerating
SMALL CAP MID CAP LARGE CAP
potential within small caps.

SOURCE: ACE EQUITY | DATA AS ON DEC 31, 2024 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
RETHINKING SMALL CAP VOLATILITY THROUGH A QUALITY LENS
While small caps tend to experience higher drawdowns compared to broader indices, the relatively lower
drawdown in the quality small cap index highlights the importance of selective exposure. This reinforces
the need for right active management over passive benchmark investing.

0.0% 0.0%

-10.0% -10.0%
-20.0% -20.0%
-30.0% -30.0%
-40.0% -40.0%
Drawdown%

Drawdown%
-50.0% -50.0%
-60.0% -60.0%
-70.0% -70.0%
-80.0%
-80.0%

May-25
May-10

May-18

May-20
May-07

May-11

May-13

May-21
May-06

May-23
May-17
May-16
May-05

May-09

May-12

May-15

May-22
May-08

May-19
May-14

May-24

May-11
May-10
May-06

May-25
May-07

May-18

May-20
May-05

May-09
May-08

May-13

May-23
May-16
May-17
May-12

May-21
May-15

May-22
May-19
May-14

May-24
Nifty 100 TRI Nifty Midcap 150 TRI
Nifty Smallcap250 Quality 50 TRI Nifty Smallcap 250 TRI
Nifty Smallcap 250 TRI

SOURCE: MFI EXPLORER DATA AS ON MAY 31, 2025

 DIVERSIFICATION ACROSS MORE THEMES
38
35 NUMBER OF COMPANIES ACROSS SECTORS
BSE 250 SMALL CAP BSE 100
25 26
24

16
14 14
11 12 12
11 10
7 7 7 7
6 6 6 5 5 5 6 5 5
3 4 3
2 2 3
1 0 1 1 0 0 1 0 1

TECHNOLOGY

REALTY
FINANCIAL

CAPITAL

MEDIA, ENTERTAINMENT
MATERIAL
SERVICES

GOODS

CHEMICALS

HEALTH CARE

CONSUMER
DURABLES

FASTEST MOVING
CONSUMER GOODS

CONSUMER
SERVICES

INFROMATION

CONSTRUCTION

AUTOMOBILE AND
AUTO COMPONENTS

SERVICES

TEXTILES

METALS &
MINING

OIL, GAS &

CONSUMABLE FUELS

TELECOMMUNICATION

& PUBLICATION

DIVERSIFIED

FOREST MATERIALS

POWER
CONSTRUCTION
Small caps offer a more diversified sectoral spread compared MARKET CAP LARGE CAP MID CAP SMALL CAP

to large caps, with substantially more opportunities across NO. OF SECTORS

17 12 21
COVERED
key growth sectors highlighted above.

SOURCE: BSE DATA AS ON MAY 31, 2025

LARGE CAPS ARE REPRESENTED BY BSE 100 INDEX, MID CAPS ARE REPRESENTED BY BSE 150 MIDCAP INDEX, SMALL CAPS ARE REPRESENTED BY BSE 250 SMALLCAP INDEX
VOLATILITY DOESN’T ALWAYS MEAN RISK,
IT OFTEN MEANS OPPORTUNITY

MEET MR. MARKET —

A TIMELESS LESSON IN INVESTING BY BENJAMIN GRAHAM
Every day, he offers to buy your share or sell you his at a new price.
His mood swings aren’t based on fundamentals, but emotions.

Some days, he’s euphoric and offers an inflated price

Other days, he’s fearful and offers a deep discount

VOLATILITY DOESN’T ALWAYS MEAN RISK,
IT OFTEN MEANS OPPORTUNITY

WHAT WE LEARN FROM MR. MARKET

Volatility is not a threat You are not obligated Emotional Independent

— it's an opportunity. to act. discipline pays. thinking wins.

When Mr. Market panics, You don’t have to buy or Mr. Market’s irrationality Success comes from
disciplined investors can sell daily. The power lies is your edge—if you focusing on value,
buy quality at a discount in patience. remain rational. not noise.
WHY INVEST IN
SMALL CAPS NOW?
 SMALL IN SIZE,
NOT IN IMPACT
EVERYDAY LEADERS ACROSS
INDUSTRIES THAT ARE SMALL CAPS

Consumer durables
Capital goods
Consumer services
FMCG
Metals & Mining
Healthcare
BFSI
Construction materials
Power
Automobile and auto components

And many more..

PLEASE NOTE THAT THE REFERENCE TO ANY INDUSTRY/ SECTOR IS PROVIDED FOR ILLUSTRATIVE
PURPOSES ONLY. THIS SHOULD NOT BE CONSTRUED AS A RESEARCH REPORT OR A RECOMMENDATION TO
BUY OR SELL ANY SECURITY OR SECTOR.

THE SLIDE IS FOR THE PURPOSE OF EXHIBITING SEGMENT LEADERS IN SMALL CAP COMPANIES AND
THERE IS NO ASSURANCE OR GUARANTEE THAT THESE STOCKS WILL BE PART OF THE FUND’S PORTFOLIO.
CORRECTION IN PRICE, NOT IN QUALITY
FY25 SAW A CORRECTION IN SMALL CAPS, OFFERING AN
OPPORTUNITY TO BUY QUALITY COMPANIES AT DISCOUNT.

CORRECTION FROM NUMBER OF SMALL FY TOTAL INDEX 1 YEAR ROCE % OF SMALL CAP
52 WEEK HIGH CAP COMPANIES PAT VALUE COMPANIES
0 to -15% 43
FY 2024 21,669 5792.24 0 - 10% 21%
-15% to -30% 81
10%-20% 35%
-30% to -45% 85 20%-30% 23%
FY 2025 29,941 6039.25
OVER -45% 41 OVER 30% 16%
₹ CRORE ROCE: RETURN ON
CAPITAL EMPLOYED

Most are trading well below 52-week highs, The index rose just 4% since FY24 while 74% of the top 250 small caps report ROCE
making valuations compelling. PAT grew 38%, reflecting the unrealised above 10%, reflecting strong fundamentals.
value of small caps.

SOURCE: ACE EQUITY

COMPANIES CONSIDERED HERE ARE THE TOP 250 SMALL CAP COMPANIES | DATA AS ON APRIL 30, 2025
*INDEX VALUES CONSIDERED FOR BSE 250 SMALLCAP INDEX | DATA FOR FY 2024 IS AS ON MAR 31, 2024, FOR FY 2025 IS AS ON MAR 31, 2025
VALUATIONS AT 5-YEAR AVERAGE

P/E RATIO OF NIFTY SMALLCAP 250 INDEX

60
55 Small cap valuations are
50 hovering around their 5-year
45
average, with significant
40
35 32.99
corrections in select
30 segments. This creates a
32.19
25 favorable entry point for new
20
NFOs to build portfolios by
15
10
capitalizing on these

May-25
selective opportunities.
Jul-20

Jul-22

Jul-24
Jul-21
Jan-21

Jul-23
Jan-23

Jan-25
Jan-22

Jan-24
Nifty Smallcap 250 Index Average

SOURCE: NSE DATA AS ON MAY 31, 2025

NOT ALL
SMALL CAPS 2024

GROW TO BECOME LARGE CAPS (2)

LARGE CAPS
2017 MID CAPS (25)

SMALL CAPS (250)

Nearly 50% of the small cap
companies from 2017 have slipped SMALL CAPS (80)
into micro cap territory. This
highlighs the importance of not just
picking the right small caps, but also
knowing what to avoid. MICRO CAPS (119)

SOURCE: CATEGORY CLASSIFICATION AS PER AMFI EXCEPT FOR MICRO CAP | DATA AS ON DEC 31 2024.
MICRO CAPS ARE COMPANIES BEYOND THE TOP 500 LISTED COMPANIES BY MARKET CAP
SMALL CAPS - WELL POSITIONED TO LEVERAGE IPOs
Small caps have dominated the IPO landscape, with 196 listings since 2020—yet only 4 have transitioned
to mid caps, and none to large caps. While the segment has delivered strong returns, this also highlights
the need for careful selection, as not all IPOs translate into long-term quality.

IPO CONCENTRATION IN SMALL CAPS AVERAGE CAGR IN LAST 4YEARS

MARKET CAP OF COUNT MARKET CAP 2020 2021 2022 2023

COMPANIES LISTED OF IPOs
LARGE CAP -3% 8% -3% 35%

LARGE CAP IPO 14 MID CAP - -2% -6% 23%

MID CAP IPO 18 SMALL CAP 30% 16% 36% 25%

SMALL CAP IPO 196 GRAND TOTAL 25% 13% 31% 25%

Small cap IPOs have delivered the highest CAGR in 3 of the last 4 years.

SOURCE: NSE, ACE EQUITY | DATA AS ON MAR 31, 2025 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
 INTRODUCING

BAJAJ FINSERV
SMALL CAP FUND
An open ended equity scheme predominantly investing in small cap stocks

ONE PORTFOLIO - THREE STRENGTHS

QUALITY GROWTH VALUE

5 PILLARS OF OUR APPROACH
QUALITY GROWTH UNDERVALUED LEADERSHIP GOVERNANCE
OPPORTUNITIES

Sound Long-term Stocks trading Emerging Transparent

fundamentals vision below their category practices
intrinsic values leaders
Consistent Long growth Aligned
earnings runway Strong Dominant in promoter
fundamentals niche segments interests
Sustainable Sustainable but temporary
competitive business mispricing High market Run by
advantages models share in seasoned
Turnaround micro segments managements
businesses
PROVEN MANAGEMENT OF SMALL CAPS
Current small cap exposure in our existing equity schemes through 3 different strategies of
Growth (Megatrends), Quality (Moat investing) and Value (Contrarian)

BAJAJ FINSERV INVESTMENT SMALL CAP STOCKS SELECTION

MUTUAL FUND STRATEGY IN CURRENT PORTFOLIO CRITERIA
(#)

Bajaj Finserv Flexi Cap Fund Megatrends 37 3Y Growth (CAGR) 30.45%

Bajaj Finserv Large and 1Y ROCE

Moat 13 23.97%
Mid Cap Fund

Bajaj Finserv Multi Cap Fund Contrarian 35 1Y Forward PB Ratio 4.73

The AMC overall has an exposure to 78 unique small cap stocks

SOURCE: INTERNAL ANALYSIS, ACE EQUITY | DATA AS ON MAY 31, 2025 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
STRATEGIC ALLOCATION TO SMALL CAPS
IN CURRENT PORTFOLIOS
SMALL CAP ALLOCATION IN SMALL CAP ALLOCATION IN
BAJAJ FINSERV FLEXI CAP FUND BAJAJ FINSERV LARGE AND MID CAP FUND

32.0% 16%

30.0% 14%

28.0% 12%

26.0% 10%

24.0% 8%

22.0% 6%

20.0% 4%
25

25
24

24

25
25
24

24
24

24
25

25
24

24
25

25
24

24
24

24
25

25
R

AY
AY
G

G
V

V
N

N
N

N
R

R
EC

EC
T

T
P

P
B

B
A

A
C

C
O

O
U

U
P

P
JA

JA
SE

SE
JA

JA
FE

FE

M
M
M

M
O

O
D

D
N

N
A

A
A

A
SOURCE: INTERNAL ANALYSIS, MFI EXPLORER DATA AS ON MAY 31, 2025
RISK-PRUDENT, NOT RISK-AVERSE
Fund’s approach to mitigating risks and unlocking growth in small caps
RISK HOW IT AFFECTS INVESTORS FUND’S RISK MITIGATION APPROACH

Information Gaps Low analyst coverage, limited In-depth internal research, management
disclosures, poor transparency interaction, and forensic checks

Governance Concerns Promoter dominance, related-party Strict governance filters, promoter

transactions, ethical lapses background checks

Capital Misallocation Reckless expansion, unrelated Emphasis on capital efficiency and strong
diversification, poor ROE projects ROCE/ROE track record

High Leverage Excessive debt makes companies Prefer companies with healthy balance
vulnerable in downturns sheet and interest coverage ratios

Business Concentration Over-dependence on a single Screen for robust revenue models and
product, client, or geography de-risk by diversified growth
of the business
ROCE: RETURN ON CAPITAL EMPLOYED | ROE: RETURN ON EQUITY
THE INVESTMENT PHILOSOPHY THAT GENERATES LONG-TERM
OUTPERFORMANCE - INQUBE
While most investors focus on what to invest in, we focus on how to invest more effectively. To achieve this,
we've identified three key sources of alpha with a holistic approach that blends fundamental analysis,
quantitative modeling, and behavioural insights.

INQUBE
Collecting superior Smarter data Making investment decisions by
data and processing to build understanding market sentiment
information efficient models. while mitigating biases
INFORMATION EDGE QUANTITIVE EDGE BEHAVIOURAL EDGE
EQUITY INVESTMENT PROCESS

IDENTIFYING ANALYSING ALLOCATION

IDENTIFYING CYCLES INVESTMENT CHECKLIST
AND MEGATRENDS
Macros
Business Regulatory requirements
TOP DOWN

Cycles
Themes Internal risk management limits
Trends Management
Investment mandate
Market indicators
Investment recording
Valuation
Screener
BOTTOM UP

Position sizing
Corporate meetings
In-house research
External analysts/Consultants
PORTFOLIO CREATION PROCESS

UNIVERSE SMALL CAP TOTAL COVERAGE PORTFOLIO

1150 STOCKS 900 STOCKS 300-400 STOCKS 40-100 STOCKS
EQUITY INVESTMENT PROCESS

POST-INVESTMENT REVIEW

MONITOR INVESTMENT PERFORMANCE

Track the performance of investments over time

Regularly evaluate business performance and market trends

Monitor key financial and non-financial metrics

RE-EVALUATE EXIT STRATEGY

Determine exit points based on evolving market conditions to generate alpha

Adjust strategies based on updated information

SEASONED TEAM WITH MULTI-DOMAIN EXPERTISE

26-MEMBER TEAM WITH A COMBINED EXPERIENCE OF 267 YEARS. 19 MBAS, 6 CFAS, 3 CAS, 1 MA (ECO)

CIO

HEAD - EQUITY HEAD – FIXED INCOME

FUND FUND CREDIT & DEALER

RESEARCH DEALER
MANAGEMENT MANAGEMENT RESEARCH

+
1 X FORENSIC 1 X QUANT 1 X ESG
SEASONED TEAM WITH MULTI-DOMAIN EXPERTISE

RESEARCH

SECTOR ANALYST MEGATRENDS ANALYST ESG ANALYST FORENSIC ANALYST

Leadership Growth Governance Quality

SMALL CAP INVESTING

ENSURING QUALITY IN SMALL CAP INVESTING
Forensic Research Process

STEPS FOCUS AREA KEY CHECKS/ INDICATORS

Initial Screening Forensic risk model, red flag triggers Unusual profit growth, auditor changes,
high pledging, sudden equity dilution
Accounting Quality Earnings credibility & revenue recognition Cash flow vs. profit mismatch, aggressive
revenue booking, capex vs. asset productivity
Cash Flow & Balance Sheet Earnings credibility & revenue CFO vs. PAT, rising receivables/inventory,
recognition high leverage, poor interest coverage
Promoter & Governance Promoter intent, board practices, Promoter pledging, litigation history,
historical conduct related-party transactions, board
independence – independent directors, board
autonomy ensuring proper checks and balances
Auditor & Disclosure Check Auditor quality, reporting Frequent auditor change, qualified audit opinions,
transparency delayed financials, inadequate disclosures
Red Flag Mapping & Scoring Risk assessment & investment Forensic scorecard, watchlist maintenance
decision support
 IN SUMMARY

Perception of Risk
• Risk is not the enemy – it’s the fuel for long-term returns
• Risk ≠ Size: Even large, familiar companies have failed due to poor governance or excessive debt
• In investing, outperformance in the long term lies in quality, governance, and growth—not just size

Why Invest in Small Caps

• Higher growth potential: Small caps outpaced large and mid caps in profit contribution (2.5x growth in 4 years)
• Diversification & depth: Small caps span across themes, offering broad exposure to India’s economic engines

Why Invest in Small Caps Now

• Valuation opportunity: FY25 correction in prices without erosion in fundamentals presents a value entry point
• Profit growth intact: Despite market correction, profits and return ratios (74% with ROCE >10%) remain strong
• Undiscovered leaders: Many small caps are driving growth in niche segments and are market leaders in these segments
• Selective corrections in certain segments present a favorable opportunity for small cap NFOs to build well-positioned portfolios

Why Bajaj Finserv Small Cap Fund

• Three-pronged alpha strategy: Combines Growth, Quality and Value styles
• Robust investment process: INQUBE framework blending top-down trends, bottom-up stock picking, and behavioural insights
• Proven capability: 78 unique small cap holdings across existing schemes + seasoned investment team with multi-domain expertise
ROCE: RETURN ON CAPITAL EMPLOYED | SOURCE: ACE EQUITY
WHO IS THIS FUND FOR?

INVESTORS WHO:

Want to invest in fundamentally strong businesses in the small cap space trading below intrinsic value

Prefer quality small cap businesses with robust governance and long-term sustainability

Want to diversify their portfolio adding small caps with high growth potential

Are looking to build wealth by capturing small cap growth over time
 SCHEME FEATURES

Scheme Type An open ended equity scheme predominantly investing in small cap stocks
Plans Regular Plan | Direct Plan
Option Growth | IDCW
Minimum Application Amount Rs. 500 (Plus multiples of Re. 1)
Minimum Additional Application
Rs. 100 (Plus multiples of Re. 1)
Amount
Entry Load Nil
Particulars Upto 10% of units held Remaining 90% of units held
Exit Load If units redeemed/switched out within 6 months from allotment date Nil 1% of applicable NAV

If units redeemed/switched out after 6 months from allotment date Nil

Fund Manager Mr. Nimesh Chandan and Mr. Sorbh Gupta (Equity Portion) | Mr. Siddharth Chaudhary (Debt Portion)
Benchmark Index BSE 250 SmallCap TRI
SIP/ SWP/ STP Available

NFO OPEN DATE: NFO CLOSE DATE:

27 JUNE 2025 11 JULY 2025
BAJAJ FINSERV SMALL CAP FUND
An open ended equity scheme predominantly investing in small cap stocks

Product label
This product is suitable for investors who are seeking*:
wealth creation over long term
to invest predominantly in equity and equity related instruments of small cap companies.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

SCHEME RISKOMETER# BENCHMARK

The risk of the scheme is very high The risk of the benchmark i.e.
BSE 250 SmallCap TRI is Very High
#The above product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may
vary post NFO when actual investments are made.
DISCLAIMER
This document should not be treated as endorsement of the views/opinions or as an investment advice. This
document should not be construed as a research report or a recommendation to buy or sell any security.
This document alone is not sufficient and should not be used for the development or implementation of an
investment strategy. The recipient should note and understand that the information provided above may
not contain all the material aspects relevant for making an investment decision. The decision of the
Investment Manager may not always be profitable; as such decisions are based on the prevailing market
conditions and the understanding of the Investment Manager. Actual market movements may vary from the
anticipated trends. Neither Bajaj Finserv Mutual Fund / Bajaj Finserv Mutual Fund Trustee Limited / Bajaj
Finserv Asset Management Limited nor its Directors or employees shall be liable for any damages whether
direct or indirect, incidental, punitive special or consequential including lost revenue or lost profits that
may arise from or in connection with the use of the information. Investors are advised to consult their own
investment advisor before making any investment decision in light of their risk appetite, investment goals
and horizon. This information is subject to change without any prior notice.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
ANNEXURE
QUALITY SMALL CAPS OUTPERFORM BROADER
INDICES OVER TIME
Nifty 100 Nifty Midcap 150 Nifty Smallcap 250 Nifty Smallcap250 Quality 50
Date
TRI TRI TRI TRI
FY 07 13.54% -1.06% 11.85% -0.6%
FY 08 23.86% 21.47% 31.33% 13.0%
FY 09 -36.65% -48.52% -54.90% -49.2%
FY 10 84.87% 135.77% 141.42% 177.6%
FY 11 11.40% 4.74% 0.91% 15.6% Outperformance
FY 12 -7.80% -4.61% -8.60% -2.9%
FY 13 8.80% 4.47% -5.26% 5.6%
FY 14 19.94% 18.01% 22.90% 36.1%
FY 15 30.76% 59.73% 62.76% 66.5%
FY 16 -6.89% -1.67% -5.95% 0.8%
Outperformance
FY 17 22.59% 37.21% 40.56% 43.9%
FY 18 12.22% 16.66% 12.87% 11.6%
FY 19 13.96% -0.65% -12.44% -5.1%
FY 20 -24.94% -30.09% -40.22% -34.4%
FY 21 71.18% 101.57% 118.68% 109.0%
FY 22 20.63% 25.05% 37.02% 40.0%
FY 23 -1.58% 2.77% -6.03% 1.0%
FY 24 34.79% 57.54% 64.15% 55.6%
Outperformance
FY 25 6.18% 8.21% 6.05% 6.2%

SOURCE: NSE; DATA AS ON MAR’29, 2025 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
ROLLING RETURNS OF QUALITY SMALL CAPS

Nifty Smallcap250 Quality 50 TRI Nifty Smallcap250 Quality 50 TRI

5-Year Daily Rolling Outperformance 3-Year Daily Rolling Outperformance
99%
95%
85%
80%

85%

80%

Nifty 50 TRI Nifty Midcap 150 TRI Nifty Smallcap 250 TRI Nifty 50 TRI Nifty Midcap 150 TRI Nifty Smallcap 250 TRI

SOURCE: NSE; DATA FROM 1 APR 2005 TO MAY 29 2025 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
QUALITY WITHSTANDS VOLATILITY
Standard deviation
Nifty 100 Nifty Midcap 150 Nifty Smallcap250 Quality 50
Date Nifty Smallcap 250 TRI
TRI TRI TRI
FY 07 29% 28% 28% 27%
FY 08 32% 34% 31% 27%
FY 09 42% 34% 35% 29%
FY 10 30% 29% 33% 26%
FY 11 17% 18% 20% 17%
FY 12 20% 19% 21% 15%
FY 13 13% 13% 14% 10%
Small cap Quality index has
FY 14 18% 15% 15% 11%
FY 15 14% 17% 19% 16%
shown lesser standard deviation
FY 16 17% 19% 21% 20% than large caps in some years
FY 17 13% 14% 15% 14%
FY 18 10% 14% 16% 14%
FY 19 12% 15% 17% 16%
FY 20 27% 25% 25% 25%
FY 21 22% 19% 20% 19%
FY 22 16% 18% 20% 18%
FY 23 15% 16% 17% 16%
FY 24 10% 13% 14% 16%
FY 25 15% 19% 21% 22%

SOURCE: NSE; DATA AS ON MAR’29, 2025 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
WEALTH CREATION IN QUALITY SMALL CAPS

₹ 38,37,489
Growth of ₹ 1 lakh invested in May 2005
Nifty 100 TRI CAGR 15%
Nifty Midcap 150 TRI CAGR 18% ₹ 26,80,912

Nifty Smallcap250 Quality 50 TRI CAGR 20%

₹ 1 Lakh
Invested
₹ 16,07,380
May-05

May-06

May-07

May-08

May-09

May-10

May-11

May-12

May-13

May-14

May-15

May-16

May-17

May-18

May-19

May-20

May-21

May-22

May-23

May-24

May-25
SOURCE: NSE; DATA FROM 1 APR 2005 TO MAY 29 2025 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
QUALITY SMALL CAPS OUTSHINE BROADER INDICES
IN SIP PERFORMANCE
Assuming Monthly SIP installment of ₹ 10000 at start of every month between May 2005 to May 2025.
Nifty Small Cap 250 TRI XIRR since Inception ~ 15.58% 2,57,47,417
Nifty Small Cap 250 Quality 50 TRI XIRR since Inception ~ 20.06%
Nifty 50 TRI XIRR Since Inception ~ 13.15%
1,46,34,482

1,08,20,054

May-18
May-06
May-05

May-09

May-13

May-16
May-12
May-08

May-15
May-07

May-11

May-19
May-14
May-10

May-17

May-24
May-20

May-23
May-22

May-25
May-21
SOURCE : MFI 360: DATA FROM 1 APR 2005 TO MAY 29 2025 | PAST PERFORMANCE MAY OR MAY NOT BE SUSTAINED IN FUTURE.
RISK-O-METER AND PRODUCT LABEL
Bajaj Finserv Flexi Cap Fund

BENCHMARK
SCHEME

Bajaj Finserv Large and Mid Cap Fund

BENCHMARK
SCHEME

Bajaj Finserv Multi Cap Fund

SCHEME BENCHMARK