Invest in Bandhan Mutual Fund’s Small Cap Fund to Maximise Potential Returns

Bandhan Bank

Bandhan Mutual Fund offers an attractive small-cap fund option for investors aiming to achieve optimal returns over the long term. The mutual fund provides retail and high net worth individual (HNI) investors with the opportunity to participate in India’s high-growth potential by investing in high-potential small and mid-sized companies through its small-cap mutual funds. Bandhan Small Cap Fund, available in regular and direct plan versions, primarily invests in equity and equity-related instruments of small-cap companies as defined by SEBI.

Here are some key features of the fund:

– Fund Manager: The fund is managed by an experienced team with over years of experience in equity research and fund management.

– Investment Objective: To generate long-term capital appreciation by investing predominantly in small-cap stocks.

– Investment Strategy: Follows a bottom-up stock selection approach to build a concentrated portfolio of 20-25 high-conviction small-cap ideas across market caps and sectors.

– Minimum Investment: Rs 1000 and in multiples of Re 1 thereafter. Bandhan Small Cap Fund has delivered outstanding returns over the past 3 years, significantly outperforming its benchmark index. As per the latest data available:

– The regular growth plan has provided 70.57% returns over the last 1 year, outperforming its benchmark BSE Small Cap TRI by over 15%.

– Over the 3 years, the fund has delivered 27.31% compounded annual returns, beating the BSE Small Cap TRI benchmark returns.

– Since inception on February 26, 2020, it has provided 38.49% returns on investment. An investment of Rs 10,000 made three years ago would now be worth Rs 20,648, almost doubling its current value.

The current value of an investment of Rs 10,000 made since inception is over Rs 41,090. Investing in Bandhan Small Cap Fund comes with several key benefits:

– Exposure to high-growth potential small caps in a risk-optimized manner.

– Historical potential for significant wealth creation over 7-10 year periods.

– Active fund management backed by a qualified and experienced team with a proven track record.

– Open-ended fund providing liquidity advantage for entry/exit anytime.

– Diversification benefits across market sectors to reduce concentration risk. With assets worth Rs 5,880 crore invested in it as of June 30, 2024, it is a reasonably sized fund in its category.

The expense ratio is competitive at 1.77% for the regular plan, covering annual fund management fees and operating expenses.

If one were to redeem their money within a year, a 1% exit load would apply to discourage short-term withdrawals, as small caps tend to be volatile in the short run. This fund is suited for longer time horizons.