Introduction
If you’re looking for a high-performing equity mutual fund to diversify your investment portfolio, the Bandhan Focused Equity Fund – Regular Plan – Growth might be your answer. This fund is known for its strategic, concentrated approach to equity investments, delivering strong returns while maintaining a balanced risk profile.
In this article, we’ll provide an in-depth analysis of the fund’s performance, portfolio strategy, risk measures, and frequently asked questions to help you decide whether it fits your investment goals.
Key Highlights of Bandhan Focused Equity Fund
- Fund Category: Equity-Focused Fund
- Benchmark: BSE 500 India Total Return Index (TRI)
- Fund Manager: Gaurav Satra (since June 2024)
- Inception Date: March 16, 2006
- Expense Ratio: 2.09%
- Exit Load:
- 1% for redemption within 1 year
- 0% after 1 year
Investment Objective- Bandhan Focused Equity Fund
The primary goal of the Bandhan Focused Equity Fund is to achieve long-term capital appreciation by investing in a concentrated portfolio of up to 30 equity and equity-related securities. Its focus on high-growth potential companies makes it attractive for seasoned investors seeking substantial returns. The investment objective of the Scheme is to seek to generate capital appreciation by investing in a concentrated portfolio of equity and equity-related instruments up to 30 companies. There is no assurance or guarantee that the scheme’s objectives will be realized.
Performance Overview – Bandhan Focused Equity Fund
The fund’s consistent outperformance against its benchmark and category peers is a testament to its robust investment strategy.
Trailing Returns (%):
| Period | Fund | Benchmark | Category |
|---|---|---|---|
| 3 Months | 7.88 | -4.44 | 0.01 |
| 6 Months | 21.37 | 7.87 | 10.12 |
| 1 Year | 39.88 | 27.01 | 28.84 |
| 3 Years (Annualized) | 18.86 | 16.85 | 16.75 |
| 5 Years (Annualized) | 19.52 | 19.58 | 19.61 |
Portfolio Composition- Bandhan Focused Equity Fund
Asset Allocation (as of October 2024):
- Stocks: 99.10%
- Cash: 0.90%
Top 5 Holdings:
- HDFC Bank Ltd: 9.07%
- ICICI Bank Ltd: 7.99%
- Trent Ltd: 5.78%
- Apar Industries Ltd: 5.51%
- Reliance Industries Ltd: 4.67%
Portfolio Full Details – Bandhan Focused Equity Fund
Top 10 Holdings (as of October 31, 2024):
| Stock Name | Sector | Allocation (%) |
|---|---|---|
| HDFC Bank Ltd | Financial Services | 9.07 |
| ICICI Bank Ltd | Financial Services | 7.99 |
| Trent Ltd | Consumer Cyclical | 5.78 |
| Apar Industries Ltd | Industrials | 5.51 |
| Reliance Industries Ltd | Energy | 4.67 |
| Coforge Ltd | Technology | 4.47 |
| Phoenix Mills Ltd | Real Estate | 3.90 |
| Cholamandalam Investment & Finance Co. | Financial Services | 3.87 |
| Angel One Ltd Ordinary Shares | Financial Services | 3.76 |
| Infosys Ltd | Technology | 3.63 |
Sector Allocation: Bandhan Focused Equity Fund
- Financial Services: 28.11%
- Consumer Cyclical: 20.85%
- Technology: 14.25%
- Industrials: 13.94%
Sector Allocation:
| Sector | Allocation (%) |
|---|---|
| Financial Services | 28.11 |
| Consumer Cyclical | 20.85 |
| Technology | 14.25 |
| Industrials | 13.94 |
| Real Estate | 3.94 |
| Consumer Defensive | 4.48 |
| Energy | 4.71 |
| Healthcare | 6.07 |
| Utilities | 3.64 |
Risk Metrics – Bandhan Focused Equity Fund
The fund offers a solid risk-return balance, reflected in its key metrics:
- Alpha (3Y): 2.53
- Beta (3Y): 0.90
- Sharpe Ratio (3Y): 0.88
- Standard Deviation (3Y): 13.78
These figures suggest the fund’s ability to deliver excess returns over its benchmark while managing volatility effectively.
Market Capitalization Breakdown: Bandhan Focused Equity Fund
| Market Cap | Allocation (%) |
|---|---|
| Giant Cap | 40.47 |
| Large Cap | 38.66 |
| Mid Cap | 9.03 |
| Small Cap | 8.74 |
| Micro Cap | 3.10 |
Why Should You Invest in Bandhan-Focused Equity Fund?
- Strong Performance: Consistently beats benchmarks and peers.
- Focused Strategy: Invests in high-growth companies with a concentrated portfolio.
- Experienced Management: Managed by an expert team with a proven track record.
For investors seeking focused equity solutions, explore the Bandhan Focused Equity Fund for detailed insights and investment options.
FAQs About Bandhan Focused Equity Fund
Q1: What is the minimum investment amount?
A: The minimum initial purchase is ₹1,000, with subsequent investments also requiring a minimum of ₹1,000.
Q2: What is the fund’s expense ratio?
A: The expense ratio is 2.09%, which is reasonable given its performance track record.
Q3: Is there an exit load?
A: Yes, 1% is charged for redemptions within one year. After one year, no exit load is applicable.
Q4: Who should invest in this fund?
A: This fund is ideal for investors with a high-risk appetite and a long-term investment horizon seeking capital growth.
Q5: How does the fund compare to diversified equity funds?
A: While diversified funds spread their investments across numerous stocks, this fund focuses on a smaller portfolio of up to 30 companies, offering potentially higher returns with greater risk.
Q6: Can I withdraw my investment anytime?
A: Yes, but note that an exit load applies if withdrawn within the first year.
Conclusion
The Bandhan Focused Equity Fund – Regular Plan – Growth is a high-performing mutual fund with a focused investment approach. Its consistent returns and robust portfolio management make it a standout choice for investors seeking high growth. However, the fund’s concentrated nature may not suit conservative investors.
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