Bandhan Mutual Fund announced the launch of the Bandhan Multi Asset Allocation Fund, an open-ended scheme that enables investment across diverse asset classes including Indian Equities, International Equities, Arbitrage, Fixed Income, Gold and Silver. Studies have established that asset allocation, rather than security selection or market timing, is the dominant factor impacting return variability. This new fund will adopt a multi-asset allocation strategy to optimize reward and risk by diversifying investments across various asset classes, each offering unique advantages in terms of growth, stability, and inflation protection. The New Fund Offer (NFO) is set to open on Wednesday, 10 January 2024, and will close on Wednesday, 24 January 2024. Investments in the Bandhan Multi Asset Allocation Fund can be made through licensed mutual fund distributors, investment advisors, online platforms, or directly at https://bandhanmutual.com/nfo/
Highlighting the importance of a multi-asset allocation approach, especially at a time when select segments in equity markets have provided very strong past returns potentially leading to build-up of concentration risks for some investors, Vishal Kapoor, CEO of Bandhan AMC, commented, “Asset Allocation helps investors avoid behavioural pitfalls, such as market timing and performance chasing which can result in shorter holding periods, portfolio imbalances and eventually sub-optimal returns. Seasoned investors recognise that no single asset class has been a winner for consecutive periods, and hence, diversifying across asset classes brings greater stability and consistency of returns. 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. By expertly integrating major asset classes into a single well-curated fund, the fund aims for potential long-term growth, with relatively lower volatility. Investors seeking a long-term well-rounded portfolio for relatively stable returns may find this very attractive."
Target allocation for this Fund includes about 50% to Indian Equities across Large-cap, Mid-cap and Small-cap stocks, 15% to International Equities across the U.S., other developed markets as well as emerging markets, 15% to fully hedged Arbitrage strategies, 10% towards actively managed high-quality Fixed Income and 10% towards domestic Gold and Silver. The portfolio would be systematically rebalanced half yearly to the targeted allocation.