Bandhan Midcap Fund Achieves 20.41% Returns in Three-Year Milestone
Bandhan Midcap Fund completes three years with a 20.41% return since launch. A ₹10,000 initial investment has grown to ₹17,307. The fund focuses on diversification in mid and emerging sectors, with overweight positions in Capital Goods, Consumer Services, and Healthcare. It has outperformed in SIP investments and has an AUM exceeding ₹1,800 crore, with 70% invested in midcap stocks. Experts advise considering the higher volatility of midcap funds when investing.
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Bandhan Midcap Fund has marked a significant milestone, completing three years of operations with an impressive performance record. The fund has delivered a robust 20.41% return since its launch, showcasing its strong position in the competitive midcap fund segment.
Growth and Performance
The fund's performance is vividly illustrated by the growth of investments since its inception. An initial lump-sum investment of ₹10,000 made during the New Fund Offer (NFO) has now appreciated to ₹17,307, demonstrating the fund's ability to generate substantial returns for its investors.
Investment Strategy
Bandhan Midcap Fund's strategy focuses on diversification beyond large-cap companies, targeting niche businesses and category leaders in mid and emerging sectors. The fund managers emphasize companies with higher growth visibility and lower risk profiles, aligning with several structural themes:
- Import substitution
- Electronic manufacturing
- Fintech
- Power shortages
- Hospitality
Portfolio Composition
The fund's portfolio reflects its strategic positioning in the market:
| Sector | Weight |
|---|---|
| Capital Goods | Overweight |
| Consumer Services | Overweight |
| Healthcare | Overweight |
| Financial Services | Underweight |
| Oil & Gas | Underweight |
| Metals and Mining | Underweight |
Investments span across various industries, including hotels, pipes, tiles, auto ancillaries, and quick-service restaurants. The fund targets companies with market capitalizations ranging from ₹31,000 crore to ₹91,000 crore.
SIP vs Lump-sum Performance
Systematic Investment Plan (SIP) investors have seen particularly strong results, outperforming lump-sum investors by nearly 7 percentage points over the past year. The fund offers flexibility with SIP investments starting as low as ₹100 per month, making it accessible to a wide range of investors.
Fund Size and Allocation
Bandhan Midcap Fund has shown significant growth, with its assets under management (AUM) surpassing ₹1,800 crore. Staying true to its midcap focus, nearly 70% of the fund's assets are invested in midcap stocks.
Expert Advice and Risk Considerations
Financial experts caution that midcap funds typically exhibit higher volatility compared to large-cap schemes. They advise investors to align such investments with their long-term financial goals and individual risk appetites.
As with any investment, it's crucial for investors to conduct thorough research and consider seeking professional advice to ensure that the Bandhan Midcap Fund aligns with their investment strategy and risk tolerance.
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