Bandhan Mutual Fund's history traces back to 2000 when it was founded as ANZ Grindlays Mutual Fund. In 2001, Standard Chartered Bank consolidated with ANZ Grindlays and rebranded the AMC as Standard Chartered India Mutual Fund. During this period, the fund managed assets worth Rs. 14,141 crore.
In March 2008, Standard Chartered Bank's mutual fund segment was taken over by the Infrastructure Development Finance Company (IDFC). The deal was closed by paying $205 million (Rs 830 crore).
In order to promote financial literacy and make people aware of mutual funds, Bandhan
AMC started the “SIP in Fixed Income” (SIFI) campaign in 2020 to raise awareness about the benefits of investing in fixed-income products through Systematic Investment Plans.
2022 was a significant year for this AMC. In December, a consortium, including Bandhan Financial Holdings Limited (BFHL), GIC, and ChrysCapital, acquired IDFC Mutual Fund for Rs 4,500 crores. After this acquisition, the fund was rebranded as Bandhan Mutual Fund.
Bandhan MF's offerings span fixed-income and
equity-oriented funds. Let's look at the schemes under different categories:
Equity Schemes:
Debt Funds:
Hybrid Funds:
Now that you know about the Bandhan scheme, let’s look at the management. Mr. Vishal Kapoor leads Bandhan Mutual Fund as its CEO. Ms Veena Mankar is the chairman, and Ms Neeta Singh is the investor service officer. The registrar and transfer agent for Bandhan Mutual Fund is Computer Age Management Services Ltd. (CAMS).
Some of the key reasons to invest in Bandhan MF are:
- Diversification : Bandhan MF holds a basket of investments across companies, industries, and even countries. This spreads risks and helps with divisication in an investment portfolio.
- Professional Management: Bandhan mutual funds tap into the expertise of experienced managers. They research, select, and monitor investments you might not have access to or time for. Depending on the market movement, they rebalance the portfolio to align it with the objectives of the group of investors.
- Liquidity: Bandhan mutual funds, particularly open-ended funds, provide investors with relatively easy access to their money. These funds typically allow you to redeem your units (shares) on business days at the net asset value (NAV), which reflects the current market value of the fund's underlying holdings.
- Potential for Long-Term Growth: Despite short-term fluctuations, historical data indicate that stock markets move upward over the long term. Investing in a well-diversified Bandhan mutual fund focused on growth allows you to benefit from this long-term trend. The compounding power can improve your returns over time. As your investment earns returns, those returns are reinvested, generating additional returns. This cycle can accelerate the growth of your wealth.
- Tax Benefits: Dividend reinvestment plans within Bandhan’s equity mutual funds allow you to automatically reinvest your dividends into the fund. Since there is no immediate redemption, you don't have to worry about the tax liability. Also, schemes such as Bandhan ELSS Tax Saver Fund , with around 95 % concentration in equities allow you a Rs 1.5 lakh deduction under section 80C. Also, if the gains are less than Rs 1 lakh on redemption, no tax is levied.
- Transparency: Mutual funds' operations are subject to Securities and Exchange Board of India regulations. As a result, Bandhan Mutual Funds AMC is required to disclose detailed information about their holdings, performance, and fees. This transparency level protects investors' interests and overcomes instances of market manipulation.
Bandhan AMC spreads your capital across different equities and debts within a single scheme. The fund managers select
stocks with strong fundamentals and debt securities with decent ratings from credit agencies. Additionally, they regularly review the scheme composition and, depending on market conditions, rebalance the holdings to ensure investors continue to receive decent returns.
The returns generated by Bandhan mutual funds work in tandem with market movements. For example, factors such as inflation, changes in interest rates, budgets, and global events like wars all influence the scheme’s performance. When deciding on the Bandhan MF, it is recommended to understand your objectives, investment horizon, and how much volatility you can bear.
For example, if you are looking for aggressive returns and have a long-term investment objective, you may choose the
Bandhan Core Equity Fund. The annualized one-year return of this scheme is 56.61%. Since it invests in mid-cap and large-cap stocks, holding it for the long term is ideal. Similarly, if you want a safer investment and are looking for stable returns in the short term, you can choose the
Bandhan Liquid Fund. This fund primarily invests in treasury bills and certificates of deposit and has delivered a return of over 7% in the past year.
The investment you make in Bandhan MF is also considered secure, but not completely safe, as this fund house operates as per the guidelines set by the Securities Exchange Board of India (SEBI). According to SEBI guidelines, it is mandatory for all fund houses, including Bandhan, to regularly update investors on fund performance, changes in the portfolio or fund manager, and so on. This transparency ensures you are equipped with enough knowledge so that, when needed, you can make decisions about switching your investment.
The new-age brokerage firms, like Dhan, offer their customers advanced investment and trading platforms.
Here are the steps involved in investing in Bandhan mutual funds through the Dhan application:
- Step 1: Open your iPhone or Android phone and browse to the App Store or Google Play Store. Next, type ‘Dhan App’ in the search box, choose the app from the list, and click on ‘Install.’
- Step 2: After the app downloads, complete the initial registration by inputting your contact number and then clicking on ‘I’m Ready to Trade.’
- Step 3: Open the SMS box to copy and paste the one-time password (OTP) into the app. Click on ‘Proceed.’
- Step 4: Enter your email address and decide on an MPIN to ensure no unauthorized transactions.
- Step 5: Provide your date of birth, Aadhaar details, and PAN to complete the onboarding process.
- Step 6: Navigate to the 'Mutual Funds' section and search for the best Bandhan mutual fund schemes. Your screen will display a list of Bandhan schemes with their assets under management, net asset values, and historical returns. Select the top Bandhan mutual fund scheme from the list and tap 'Invest Now.’
- Step 7: Decide on the investment mode. If you want to invest through the Bandhan lump sum plan, enter the contribution amount directly. If you wish to proceed with a systematic investment plan (SIP), choose the date of the month on which you want the amount to be debited.
- Step 8: Pay using one of the various digital payment modes available. Confirm the transaction by entering the OTP.
- Step 9: After completing the transaction, regularly check the scheme's performance against its benchmark index. If you feel the returns are not up to your expectations, you can switch to a different scheme.
As mentioned, investing in Bandhan Mutual Funds is possible through SIP and lump sum methods. You can start the Bandhan SIP plan with a minimum investment of Rs 500, making monthly or quarterly contributions based on your budget. This allows you to benefit from rupee cost averaging and compounding. On the other hand, lump sum investments involve a one-time payment and are recommended when the market is down, enabling you to acquire more units at lower costs.
Reviewing the expected return is crucial if you want to evaluate the scheme's performance using historical returns for Bandhan SIP investments. The
Bandhan SIP calculator can help you do this. This tool requires inputting the investment amount, frequency, and tenure.
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