Bajaj Finserv Flexi Cap Fund has completed three years since its inception, delivering a 65.2% absolute return in its direct-growth plan. This performance has outperformed major benchmarks like the BSE 500 TRI. Investors should review the fund's 'Very High' risk rating and investment strategy before considering it for their portfolio, as past results do not guarantee future gains.
The Bajaj Finserv Flexi Cap Fund has completed its three-year milestone since its inception on August 14, 2023. According to data from the fund house, the scheme's direct-growth plan has delivered an absolute return of 65.2% over this period. For perspective, an initial investment of ₹10,000 made at the launch would have grown to ₹16,513 by August 13, 2026.
Performance Against Benchmarks
This growth represents a compounded annual growth rate (CAGR) of 18.21% for the direct-growth plan. The fund has outperformed its primary benchmark, the BSE 500 TRI, which recorded a CAGR of 12.74% over the same three-year window. It also surpassed the Nifty 50 TRI, which delivered a CAGR of 9.15% during the same timeframe. While the performance has been robust, it is important to note that the regular-growth plan also performed well, posting an absolute return of 58.5% with a CAGR of 16.59%.
Fund Strategy and Scale
The fund follows a 'megatrends' investment strategy. This approach focuses on identifying companies that are expected to benefit from long-term changes in areas such as technology, consumer demographics, new regulations, and sustainability. As an open-ended equity scheme, it has the flexibility to invest across large, mid, and small-cap stocks. As of July 31, 2026, the fund managed total assets worth ₹8,149.81 crore, reflecting its scale and market presence.
Understanding the Risks
Investors looking at these returns should be aware of the inherent risks associated with equity mutual funds. The Bajaj Finserv Flexi Cap Fund carries a 'Very High' risk rating, as mandated by the regulator, SEBI. This rating reflects the volatility typical of equity investments, particularly those with exposure to mid and small-cap stocks.
Furthermore, while three years is a notable period, it is relatively short when assessing an equity fund's performance across complete market cycles, which often include periods of downturn. Past performance is not a guarantee of future returns, as market conditions and portfolio holdings change constantly. Additionally, investors should consider the fund's exit load, which is 1% if units are redeemed in excess of 10% within six months of investment.
The most important monitorables for existing and potential investors include the consistency of the fund manager's investment strategy, changes in the portfolio composition, and how the fund manages volatility during periods of market stress. Investors should always align such investments with their own financial goals and risk tolerance rather than focusing solely on past performance.