NJ Flexi Cap Fund NFO – Issue Details and Review

NJ Mutual Funds have launched NJ Flexi Cap Fund New fund offer. This open-ended fund invests in large-cap, mid-cap, and smallcap stocks.  In the last 5 years, flexicap mutual funds generated 13% average returns across mutual fund schemes. The hard truth is that some of the flexicap funds generated below bank FD interest rates too. Should you invest in NJ Flexi Cap NFO? Who can invest in such flexicap mutual fund schemes?

NJ Flexi Cap Fund – NFO Issue Details

Here are the NFO details.

NFO Opens 15-Aug-23
NFO closes 29-Aug-23
Scheme reopens for continuous purchase/sale Within five Business days from the date of allotment
Minimum Application Amount Rs 500 and in multiples of Rs  1 thereafter
Minimum SIP Rs 500 for 6 months
NAV of the fund Rs 10 during NFO period
Entry Load Nil
Exit Load 1% exit load if redeemed below 5% within 30 days
Risk Very High Risk
Benchmark Nifty 500 Index (TRI)
Fund Manager Mr. Sanjay Bembalkar
Mr Hardick Bora

NJ Flexi Cap Fund SID Prospectus

What is the investment objective of NJ Flexi Cap Fund NFO?

The investment objective of the Scheme is to generate long term capital appreciation by investing in equity and equity related instruments across market capitalizations.

However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

What is the allocation pattern in this fund?

This fund invests pattern is as follows:

Type of instruments Min % Max % Risk Profile
Equity and Equity related instruments 65% 100% Medium to High
Debt and Money Market Securities 0% 35% Low to Medium

Why to invest in NJ Flexi Cap Fund NFO?

Here are a few reasons to invest in this fund.

  • This fund invests across market cap i.e. largecap, midcap and smallcap segment which offers diversification.
  • We have observed in the past that while largecap stocks provides stable returns, midcap and smallcap stocks tends to provide superior returns. Hence flexicap funds with such combination have potential to generate higher returns.
  • This is unique flexicap fund that invests based on rule based SMART beta platform which is their proprietary system.

Risk Factors in this Flexicap Fund.

One should consider some of these risk factors / negative factors before investing.

  • This fund invests in midcap and smallcap which are high risk in nature.
  • Investing in smallcap stocks can have liquidity issues.

How is the performance of existing Flexi Cap funds in India?

Below is the performance of flexicap mutual fund schemes.

Scheme Name 1 Yr 3 Yrs 5 Yrs 10 Yrs
Quant Flexi Cap Fund 19% 36% 23% 25%
Parag Parikh Flexi Cap Fund 15% 24% 18% 20%
PGIM India Flexi Cap Fund 9% 24% 17%
JM Flexi Cap Fund 23% 29% 16% 20%
HDFC Flexi Cap Fund 20% 31% 16% 19%
Union Flexi Cap Fund 13% 24% 15% 15%
Canara Robeco Flexi Cap Fund 9% 22% 14% 16%
DSP Flexi Cap Fund 13% 23% 14% 18%
Navi Flexi Cap Fund 15% 24% 14%
Franklin India Flexi Cap Fund 16% 29% 14% 18%
Edelweiss Flexi Cap Fund 13% 25% 14%
SBI Flexi Cap Fund 10% 23% 12% 19%
Kotak Flexi Cap Fund 12% 21% 12% 18%
Aditya Birla Sun Life Flexi Cap Fund 11% 22% 12% 19%
Axis Flexi Cap Fund 4% 17% 12%
UTI Flexi Cap Fund 3% 19% 12% 16%
HSBC Flexi Cap Fund 14% 23% 11% 17%
LIC MF Flexi Cap Fund 12% 19% 11% 13%
Bandhan Flexi Cap Fund 8% 21% 10% 16%
Taurus Flexi Cap Fund 8% 18% 7% 12%
Motilal Oswal Flexi Cap Fund 9% 14% 7%
Bank of India Flexi Cap Fund 16% 29%
Shriram Flexi Cap Fund 8% 18%
Tata Flexi Cap Fund 11% 19%

Should you invest in NJ Flexi Cap Fund NFO?

NJ Flexi Cap Fund New Fund Offer invests across market capitalization i.e. in large cap, mid cap and smallcap stocks.

On the positive side, largecap stocks provides stable returns and the midcap / smallcap stocks have potential to generate higher returns. Such funds can help to diversify investors portfolio.

On the negative side, its exposure to midcap and smallcap segment is high risk. Beyond this, there are a few flexicap mutual funds that generated below bank FD interest rates in the last 5 years.

High risk investors can invest in such funds for medium to long term perspective. Alternatively, one can invest in existing flexicap mutual funds that have already proven its performance in various market cycles.

Suresh KP

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