Bandhan Mutual Fund has announced the launch of Bandhan Innovation Fund, a thematic fund designed to invest in companies spearheading innovative breakthroughs.
The fund’s new fund offer (NFO) will run from April 10, 2024 to April 24, 2024.
NFO Details
Investors can make a lump sum investment with a minimum of Rs. 1,000, and subsequently in multiples of Re. 1. For systematic investment plans (SIP), the minimum investment starts at Rs. 100 and in multiples of Re. 1 thereafter, with a requirement of a minimum of six instalments. If units are redeemed or switched within 30 days from the date of allotment, an exit load of 0.50 per cent of the applicable net asset value (NAV) will apply.
Investment Philosophy
The fund targets companies with substantial R&D investment, high skilled-employee costs, potentially higher margins or growth, unique products or services, non-linear business models, and a notable brand presence.
This thematic fund will allocate its investments across categories of innovators. It plans to allocate 35-45 per cent to leading innovators, i.e., companies with substantial industry R&D investments. Another 35-45 per cent will be invested in rising innovators, i.e., companies using innovation for a competitive edge. About 10-15 per cent will go to emerging innovators, i.e., companies filling market gaps with disruptive products or services and showing a strong growth trajectory.
The fund is benchmarked against NIFTY 500 TRI
On why this fund should be considered in one’s portfolio, the fund house said that innovation helps a company to survive in a competitive landscape, optimise productivity and efficiency as well as potentially increase revenue or profit margin. Further, innovation is happening across sectors such as finance, auto, technology, healthcare, entertainment and retail, among others.
On structural initiatives fuelling innovation, Bandhan Mutual Fund said that India’s rank in this regard surged from 81 in 2015 to 40 in 2022. Further, innovation in the entertainment and retail sector is ongoing and digital media is expected to grow three-fold in six year. Also e-commerce is expected to expand seven-fold in 10 Years.
Vishal Kapoor, CEO of Bandhan Asset Management Company (AMC), said in a statement: “India’s flourishing innovation landscape presents an exciting investment opportunity. We are observing ground-breaking transformations not only in technology, but also in sectors, such as finance, auto, technology, healthcare, entertainment, retail, etc. With India’s climb in the global innovation rankings and swift advancements in fields, such as digital media, e-commerce, and electric vehicles, we stand at a crucial juncture.”
