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Bandhan Financial Services Fund - Direct Plan

Sector Fund - An open ended equity scheme investing in Financial Services Sector

EquityInception Date:28/07/2023
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What are Financial Services Mutual Funds?

Financial services mutual funds are a type of sectoral mutual fund that invests in equity and equity-related instruments of companies involved in the finance sector. Financial services mutual funds are predominantly an equity instrument and consequently come with a high level of risk.

The financial sector plays an important role in the economic development of India. Investors investing in financial services mutual funds may benefit by investing in the entire sector rather than individual stocks of financial companies. Investors can invest across banks, NBFCs, capital market, insurance and fintechs through the Bandhan Financial Services Fund.

According to the mandate, financial services mutual funds have to invest at least 80% of their assets in equities and equity-related securities of financial companies. Equity securities are vulnerable to market volatility and fluctuations and may be suitable for investors with a high-risk appetite. Finance sector mutual funds focus on a single sector and, as a result, may be highly prone to risk due to minimal asset diversification.

Financial Services Mutual Funds are subject to taxes similar to equity mutual funds. Gains above ₹1 lakh from units held for more than one year are subject to LTCG tax at 10%. STCG is levied on units held for less than a year.

  • Min Investment 1,000
  • Min SIP Amount 100
  • Exit Load

    • If redeemed/switched out on/within 30 days from the date of allotment - 0.5% of the applicable NAV.

    • If redeemed/switched out after 30 days from the date of allotment - Nil.

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This scheme has not completed one year.

NAV 13.0100 as on 21/06/20241 Day Change: -0.03(-0.22%)

Scheme is suitable for a minimum investment horizon of more than 5 years

Tier 1 Benchmark : Nifty Financial Services TRIAlternate Benchmark :

This is a new scheme and required performance data is not yet available.

This fund is managed by Mr. Sumit Agrawal (w.e.f 28/07/2023)Mr. Manish Gunwani (w.e.f 28/07/2023)Mr. Harshal Joshi (w.e.f 28/07/2023)

View fund performance of other funds managed by Mr. Sumit Agrawal, Mr. Manish Gunwani, Mr. Harshal Joshi

Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.

Taxation:

For taxation, please refer the link :  https://bit.ly/3spfzbo

Bandhan Financial Services Fund

(Scheme Risk-o-meter)

Investors understand that their principal will be at Very High Risk.

Nifty Financial Services TRI

(Tier 1 Benchmark Risk-o-meter)

This product is suitable for investors who are seeking*:
• To create wealth over long term
• Investment predominantly in equity and equity related instruments of the companies engaged in the Financial Services sector

Who Should Invest in a Financial Sector Mutual Fund?

Financial sector mutual funds predominantly invest in equity and equity-related securities and are consequently a high-risk fund. This fund may be suitable for investors with a high-risk appetite seeking long-term wealth creation. Investors seeking short-term, liquid investments with low risk may not be suited to financial services mutual funds.

Bandhan Financial Services Fund invests predominantly in one sector. Investors seeking diversification of their portfolio may not benefit from investing in this fund. The lack of diversification may also increase the risk level of this fund.

Investors seeking investments in financial sector may be suited to invest in this fund.

FAQs on Financial Services Mutual Funds

What is a financial services fund?

Financial services funds are a type of sectoral mutual fund that invests in equities of companies involved in financial services, such as banks, NBFCs, capital markets, insurance and fintechs.

What are the benefits of Financial Services Mutual Funds?

Financial services mutual funds allow investors to potentially create wealth in the long term. Investors can benefit by investing in the finance sector as a whole instead of stocks of individual companies.

Are financial services mutual funds risky?

Financial services mutual funds are categorised as a high risk investment option. They invest predominantly in equities. Equities are highly vulnerable to market fluctuations and volatility. Moreover, financial services funds invest in only one sector. As they do not diversify their investments, they are vulnerable to greater risks.

What are the disadvantages of financial services mutual funds?

Financial services mutual funds are primarily a sectoral mutual fund. As these funds focus primarily on investing in one sector, investors do not gain the potential benefits of diversification.

Are finance sector mutual funds a short-term investment?

No, finance sector mutual funds are a long term investment option. They are suitable for investors seeking wealth creation in the long term.

Do financial services funds invest in debt instruments?

Financial services mutual funds are mandated to invest at least 80% in equities of companies involved in the finance sector. The remaining 20% can be invested in other equities, including overseas equities, debt or money market instruments. However, a majority of the fund's assets have to be invested in finance sector equities.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.