Bandhan Mutual Fund Launches Its New Business Cycle Fund
Bandhan Mutual Fund has launched Bandhan Business Cycle Fund, an open-ended equity scheme based on a business cycle-based investment theme. It aims to capitalize upon different phases of the economic cycle by adjusting sector and stock allocations accordingly.
The New Fund Offer (NFO) will be available for subscription from September 10 to September 24, with continuous sale and repurchase starting on October 1. The fund seeks to generate long-term capital appreciation by primarily investing in equity and equity-related instruments, with a dynamic approach based on the changing stages of business cycles in the economy.
It will benchmark against NIFTY 500 TRI and will be managed by a four-person team of portfolio managers. An exit load of 0.5% of the applicable NAV is supposed to be levied if redeemed or switched out within 30 days from the allotment date whereas, it shall be free from an exit load if redeemed or switched out beyond 30 days from allotment date.
The minimum amount required to start a lump sum investment is Rs 1,000; subsequent investment is accepted in multiples of Re 1. For the SIP investment, it starts with a minimum of Rs 100 and increases again in multiples of Re 1 with a minimum number of installments needed of six.
The equity portion in equities and equity-related instruments of the fund shall vary between 80% and 100%, depending on the business cycle; overseas equities shall form a part of up to 20% debt securities and money market instruments, including government securities and securitized debt, of up to 10% by units issued by REITs and InvITs.
This scheme is best suited to long-term investors who have the desire and flexibility to build wealth through equity investments in companies that align with a business cycle-driven approach. However, please do note that the principal invested will carry with it a “very high” risk rating, according to the scheme’s riskometer.
