Investors are bullish about the Indian economy due to its initiatives and growth, making small cap funds an attractive option. Investing in small-cap mutual funds helps navigate this potential by providing a diversified portfolio of promising stocks.
With so many small-cap companies in the market, finding the right ones can be tricky. By investing in small-cap mutual funds, investors can gain exposure to a diversified portfolio of stocks, which helps identify those with significant growth potential.
Bandhan AMC launched the Bandhan Small Cap Fund on 25 February 2020, to capitalize on the growth momentum in the small-cap sector.
Let’s delve into the blog to determine whether the Bandhan Small Cap Fund is a suitable addition to your portfolio.
What are small cap funds?
These are the funds that invest in companies that are ranked beyond 250 and exhibit higher growth potential. Small cap funds seek out smaller, emerging firms that exhibits significant expansion.
Details of Bandhan Small Cap Fund
The Bandhan Small Cap Fund is an open-ended equity scheme that predominantly invests in equities and equity-linked securities within the small-cap segment, and it aims to generate long-term capital appreciation.
The fund considers “BSE 250 Small cap TRI” as its benchmark index.
Let’s have a quick look at the key basic details of the fund:
Portfolio Construction
The fund allocates 91.75% of its corpus to equities, 8.2% to cash and cash equivalents, and a minimal 0.05% to debt instruments.
The top holdings of the fund are as follows.
Note: Holdings mentioned above are as on 31 July 2024.
Navigating risks and returns
This fund has outperformed its peers by delivering the highest returns in the small-cap category, with an impressive 71.33% over 1 year and 45.00% over 2 years. It has consistently ranked 1st in both timeframes, significantly surpassing the category average and benchmark returns.
Let’s take a quick peek at the returns generated by the fund:
Note: Returns mentioned above are as of 16 August 2024. Past performance is not a guarantee of future returns. It helps investors to understand the historical performance.
Bandhan small cap fund has consistently outperformed both its benchmark returns and the category average. However, Small cap funds are highly risky than large and mid-cap stocks, as they invest in companies with smaller market capitalization.
This makes them more unstable but also provides the potential for higher returns compared to large and mid-cap funds.
Bandhan AMC
Bandhan Mutual Fund Asset Management Company was established in 2000, and it is one of India’s Top 10 fund houses in terms of Asset Under Management. It is formerly known as IDFC Mutual Fund AMC.
This AMC has an experienced investment team, and it is present in over 60 cities.
Bandhan Mutual Fund’s focus is on helping savers become investors and create wealth. To support this objective, the fund house’s equity and fixed-income offerings aim to deliver performance consistent with their well-defined goals.
Suggested read: Bandhan NIFTY Bank Index Fund NFO
Meet the fund management team
The fund is actively managed by a team of expert professionals—Manish Gunwani, Kirthi Jain, and Harsh Bhatia—who bring significant experience and expertise to the table.
Manish Gunwani joined Bandhan Asset Management Company as Head of Equity Fund Management in January 2023, bringing extensive fund management experience.
Kirthi Jain, who joined in May 2023, previously worked at Canara HSBC Life Insurance, Sundaram Mutual Fund, and B&K Securities.
Harsh Bhatia has over 28 years of experience, previously served as an Equity Associate at Emkay Global and worked in accounting at Takaful Emarat.
Gaurav Satra and Ritika Behera are the oversees fund managers to this fund.
Who should invest in the Bandhan mutual fund?
It is a high-risk high return fund. Hence, Investors who seek long term capital appreciation and are willing to take higher risks can choose Bandhan Small Cap fund. It is suitable for investors looking to invest for more than 5 years.
Invest in Bandhan Small Cap Fund: Begin Your SIP Today!
