Bajaj Finserv Flexi Cap Fund Turns 3, Delivers Alpha: Understanding Its T.R.E.N.D.S Approach

Bajaj Finserv Flexi Cap Fund Turns 3, Delivers Alpha: Understanding Its T.R.E.N.D.S Approach Published – August 20, 2026 03: 09 pm IST.

Key points

• Visit the website of Bajaj Asset Management Limited (formerly Bajaj Finserv Asset Management Limited), authorised mutual fund platform or go through a distributor.
• On the account home page, select the Bajaj Finserv Flexi Cap Fund and choose between lumpsum and Systematic Investment Plan (SIP).
• Investors who find the fund's TRENDS approach suited to their long-term goals may consider investing in the Bajaj Finserv Flexi Cap Fund.
• Since then, the fund has applied this approach through changing market conditions and has outperformed its benchmark, BSE 500 TRI, over a number of periods.
• As a flexi cap fund, it can invest throughout substantial, mid and small cap firms, subject to minimum 65% investment in equity and equity related instruments.

Three years ago, Bajaj Finserv Flexi Cap Fund entered the market with a clear proposition: look beyond the next quarter and invest in shifts that could shape businesses for years. These broad, long-running shifts, known as megatrends, are at the heart of the fund's investment strategy.

Since then, the fund has applied this approach through changing market conditions and has outperformed its benchmark, BSE 500 TRI, over a number of periods. While the Direct Expansion Plan delivered 18.21%, compared with 12.74% for the benchmark, since inception, the Regular Expansion Plan delivered annualised returns of 16.59%. Over the last year, the respective returns were 9.85% and 11.26%, against the benchmark's 4.93%*.

As a flexi cap fund, it can invest throughout substantial, mid and small cap firms, subject to minimum 65% investment in equity and equity related instruments. Allocations are guided by market conditions and the fund managers' outlook. Its search for opportunities follows the TRENDS framework, covering Technological, Regulatory, Economic, Nature, Demographic and Social megatrends. Together, these six lenses influence the firms the fund studies, the opportunities it pursues and, ultimately, the portfolio it builds. Its three-year record offers a useful view of how that approach has worked in practice.

*Source: Internal Analysis, MFI360 and Bloomberg. Data as of August 13, 2026. Past performance may or may not be sustained in future. Three years of the TRENDS approach.

Notably, the TRENDS framework divides the broad idea of megatrend investing into six clear areas. Each offers the fund a different lens for spotting long-term changes and the businesses that may benefit from them.

Digital payments have changed banking, automation is reshaping factories and artificial intelligence, connected devices, and better data tools are altering customer service, logistics and product design. The fund looks throughout industries for businesses that can apply technology to improve efficiency, widen their reach or build a stronger offering. Regulatory: Policy opening potential profit pools.

Administration policy can change the economics of an industry. India's push towards domestic manufacturing, renewable energy and greater self-reliance has created opportunities throughout areas such as electronics, defence, chemicals and industrial products. The fund studies firms that may gain as these policies take effect. Economic: After the movement of capital.

Economic shifts can often be spotted in everyday choices. More households are using formal credit, buying insurance and investing through organised financial channels. Businesses, too, are moving into the formal economy and spending more on capacity, technology and distribution. At a broader level, sustained infrastructure investment creates demand throughout cement, engineering, power equipment and transport. Meanwhile, the economic lens follows these movements in funds and investment, including the reworking of global supply chains and India's growing role as a manufacturing destination. Nature: Business through a greener lens.

India's sizeable working-age population and expanding middle class backing demand for homes, healthcare, travel, financial services and discretionary products. Meanwhile, longer life expectancy brings a greater need for medicines, hospitals and wellness services. Demographic change tends to build gradually. It can provide well-run firms years to develop products, distribution and brands around new patterns of demand. Demographic: A young country with changing needs.

Urbanisation, rising incomes and digital access are changing what Indian consumers value. Increasingly, consumers are seeking out convenience, better quality, healthier products and more value. These preferences can be seen in online services, premium products, organised retail, education, travel and personal care. The social pillar studies such shifts in behaviour and the businesses that may be positioned to serve them at scale. How a trend earns a place in the portfolio.

Identifying a compelling strategy is the first step – assessing its potential as an investment is equally significant. The fund first identifies megatrends and the sectors probable to benefit from them. This helps create a pool of firms for further study. Each firm is then assessed on four factors: Is the business a genuine beneficiary of the trend? Can it turn that advantage into sales, cash flow and profit? Are the business, management and balance sheet sound? And is the share available at a favourable valuation?

This blend of top-down and bottom-up research is central to the process. The broad trend points the research team towards an opportunity. Then, company-level research determines whether the stock should enter the portfolio and how much the fund should invest in it. The fund may review its holding if the trend slows, the company's financial position changes or the share cost rises well ahead of the business. Meanwhile, a three-year milestone with a forward view.

Bajaj Finserv Flexi Cap Fund's first three years show a recognisable investment style: flexible throughout market capitalisations, willing to build a portfolio that differs meaningfully from the benchmark, and a focus on businesses and ideas that may benefit from long-term changes.

For investors, the TRENDS approach brings a number of potential benefits. Since megatrends can remain relevant for years, the fund can look beyond short-term market movements and focus on businesses with a longer runway for expansion. Identifying these shifts early may additionally assist the fund invest before their full business potential is widely recognised. There is no certainty that every trend will develop as projected, but spreading investments throughout multiple trends, sectors and firm sizes can reduce dependence on a single opportunity.

For context, the fund's three-year milestone gives investors a clearer view of how this approach works in practice, from identifying broad changes to selecting firms that may turn them into earnings. As the fund enters its fourth year, the focus remains on finding lasting business opportunities while paying close attention to firm quality, valuation and risk. How to invest in Bajaj Finserv Flexi Cap Fund.

Investors who find the fund's TRENDS approach suited to their long-term goals may consider investing in the Bajaj Finserv Flexi Cap Fund. Here's the process involved.

1. Visit the website of Bajaj Asset Management Limited (formerly Bajaj Finserv Asset Management Limited), authorised mutual fund platform or go through a distributor.

2. Log in to the investor portal with your PAN. Ensure you are KYC validated or complete the KYC journey.

3. On the account home page, select the Bajaj Finserv Flexi Cap Fund and choose between lumpsum and Systematic Investment Plan (SIP).

4. Choose your investment amount and set up an autopay mandate (in case of SIP).

Before investing, it is significant to read the scheme-related documents and consider the fund's suitability for one's financial needs. As an equity fund, the scheme requires a particularly high risk appetite and a long investment horizon.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. "This article is part of the programme."

In short, bajaj Finserv Flexi Cap Fund Turns 3, Delivers Alpha: Understanding Its T.R.E.N.D.S is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.