Stories
Bajaj AMC Defies Market, Bets Big on Insurance Stocks Amid AI Shift
- •Bajaj Asset Management, a $4 billion fund manager, is repositioning its portfolio due to higher crude prices, elevated interest rates, and the next phase of the AI investment cycle.
- •Chief Investment Officer Nimesh Chandan stated the fund is preparing for prolonged conflicts leading to higher crude prices and interest rates.
- •The fund house, with assets worth ’39,660 crore ($4.1 billion) as of August 2026, is investing in private banks, pharmaceuticals, and large insurance companies, favoring large-cap stocks.
- •Bajaj AMC's decision to buy insurance stocks goes against a massive sell-off triggered by regulatory changes, with Chandan believing large, diversified companies will benefit.
- •The fund identified AI as a structural theme in 2023, initially investing in AI infrastructure beneficiaries, and now focuses on businesses using AI to boost productivity and margins.
Key Questions Answered
Bajaj Asset Management believes that large companies with diversified channels and products will benefit from regulatory shifts, pointing to falling valuations over the last two years and potential pull demand for term and unit-linked insurance products.
The fund manager is repositioning its portfolio to account for higher crude prices, elevated interest rates, and the next phase of the artificial intelligence investment cycle by picking up stocks from private banks, pharmaceuticals, and large insurance companies.
Bajaj AMC invested across power equipment, wires and cables, transformers, renewable energy, and commodities like copper and silver, and has recently focused on businesses that leverage AI to improve productivity, margins, and market share.
