The Bandhan Multi Asset Allocation Fund, a hybrid fund offers investors an avenue for diversification, across five major asset classes and 13 sub-classes.
Bandhan Mutual Fund launched the Bandhan Multi Asset Allocation Fund, a hybrid fund diversifying investments across asset classes such as Indian Equities, International Equities, Arbitrage, Fixed Income, Gold and Silver. The New Fund Offer (NFO) will run from January 10, 2024 to January 24, 2024.
The fund imposes no exit load for withdrawing 10 per cent of investments. Above that 0.5 per cent on the remaining investment will be charged as exit load if redeemed within 30 days from allotment. The subscription minimum amount is Rs. 1000 for lump sum purchases, and in multiples of Rs 1 for additional purchases. For SIP, the minimum subscription is Rs. 100 and in multiples of Rs. 1 thereafter.
Multi Asset Allocation Funds are designed to distribute investments across different asset classes. As per the Securities and Exchange Board of India's (SEBI) guidelines, these funds are categorized as hybrid funds that are required to allocate at least 10 per cent to three distinct categories such as equity, debt, gold or commodities, or REITs/InvITs units.
Multi Asset Allocation Funds offer flexibility to adapt to market conditions. They can capitalise on market uptrends by investing in profitable asset classes during a bull run or prioritise stability during market downturns by focusing on less volatile options.
Bandhan Mutual Fund said it aims for a diversified portfolio with 50 per cent in Indian Equities across all market caps, 15 per cent in International Equities, 15 per cent to fully hedged Arbitrage strategies, 10 per cent in high-quality fixed income assets, and 10 per cent in domestic gold and silver. The portfolio would be systematically rebalanced half yearly to the targeted allocation, the release said
Vishal Kapoor, CEO of Bandhan AMC, said that studies have established that asset allocation, rather than security selection or market timing, is the dominant factor impacting return variability. "Bandhan Multi Asset Allocation Fund is crafted to offer investors a sophisticated, transparent, and effective way to achieve a well-diversified portfolio investing in 5 major asset classes and across 13 sub-asset classes," Kapoor said.
AMFI data reveals that, on average, the ten funds in this category have delivered returns of 22.01 per cent in the past year and 16.53 per cent over the past three years.