This mutual fund has outperformed its benchmark in its first year: Should you invest

Bajaj Finserv AMC’s Large and Mid Cap Fund has marked its first anniversary. The fund outperformed its benchmark, the Nifty Large Midcap 250 TRI, by generating a cumulative alpha of 8.07% in the Direct Plan and 6.45% in the Regular Plan as of February 28, 2025, the fund house said in a statement.

Fund performance and investment strategy

Direct plan: 7.40% return over the past year; ₹10,000 investment grew to ₹10,740

Regular plan: 5.78% return over the past year; ₹10,000 investment grew to ₹10,578

Benchmark return: 0.67%; ₹10,000 investment grew to ₹10,067

The fund follows a top-down and bottom-up stock selection process, combining its proprietary InQuBe (INformation edge + QUantitative edge + BEhavioral edge) methodology.

The equity portion is managed by Nimesh Chandan and Sorbh Gupta, while the debt portion is overseen by Siddharth Chaudhary.

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Fund house’s outlook

Ganesh Mohan, CEO of Bajaj Finserv AMC, said, “Our Large and Mid-Cap Fund was launched with a vision to balance stability and growth.”

Nimesh Chandan, CIO, Bajaj Finserv AMC, added, “This fund is positioned for quality-focused, long-term investors. Our moat-based investing strategy helps identify companies with sustainable competitive advantages, creating a solid foundation for long-term growth while maintaining a balanced risk profile.”

Caution for investors

While the fund’s performance has been strong in its first year, investors should note that past performance is not indicative of future results. Market conditions, economic shifts, and company fundamentals can impact future returns.

Additionally, the fund’s strategy focuses on quality-oriented investments, which may limit exposure to high-growth but riskier opportunities.

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