Bandhan Financial Services Fund - Direct Plan
Sector Fund - An open ended equity scheme investing in Financial Services Sector
Click here to watch the Fund Manager share exclusive insights on the fund.
What are Financial Services Mutual Funds?
Every time you swipe your card, apply for a loan or use a mobile payment app, you're interacting with the financial services sector. This sector is central to our daily transactions and economic growth. Financial services mutual funds allow you to invest in banks, insurance companies, and fintech firms, offering exposure to the financial sector's potential.
Financial services mutual funds are a type of sectoral mutual fund that invests in equity and equity-related instruments of companies in the finance sector. As these funds primarily focus on equities, they come with a higher level of risk.
The financial sector plays a vital role in India's economic development. By investing in financial services mutual funds, investors gain exposure to the entire sector rather than individual stocks. Through the Bandhan Financial Services Fund, investors can invest across banks, NBFCs, capital markets, insurance, and fintech companies.
As per the mandate, financial services mutual funds must invest at least 80% of their assets in equities and equity-related securities of financial companies. Due to market volatility, these funds are suited for investors with a high-risk appetite. Since these funds focus on a single sector, they carry higher risks due to limited diversification..
Financial services mutual funds are taxed similarly to equity mutual funds. Gains exceeding ₹1 lakh from units held for more than one year are subject to LTCG tax at 10%. Short-term capital gains (STCG) are taxed as per your income slab for units held for less than one 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.
Scheme is suitable for a minimum investment horizon of more than 5 years
Tier 1 Benchmark : Nifty Financial Services TRIAlternate Benchmark :
- Performance
- Portfolio
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Performance as on 29th November 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 28/07/2023 Since inception | 1 year | 3 year | 5 year | 10 year | 28/07/2023 Since inception | |
| Bandhan Financial Services Fund - Regular Plan - Growth | 28.26 | N.A. | N.A. | N.A. | 27.84 | 12,834 | N.A. | N.A. | N.A. | 13,906 |
| 21.18 | 11.88 | 11.85 | 13.28 | 14.38 | 12,125 | 14,010 | 17,519 | 34,850 | 11,977 | |
| 21.27 | N.A. | N.A. | N.A. | 17.93 | 12,127 | 14,010 | 17,519 | 34,850 | 12,478 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Ms. Ritu Modi (w.e.f 02/12/2024), Mr. Harshvardhan Agrawal (w.e.f 07/06/2024), Mr. Harshal Joshi (w.e.f 28/07/2023), Ms. Ritika Behera (w.e.f 02/12/2024), Mr. Gaurav Satra (w.e.f 02/12/2024)
View fund performance of other funds managed by Ms. Ritu Modi, Mr. Harshvardhan Agrawal, Mr. Harshal Joshi, Ms. Ritika Behera, Mr. Gaurav Satra
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/46xQzi1
Bandhan Financial Services Fund
(Scheme Risk-o-meter)
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 invest predominantly in equities and are considered high-risk. They are suitable for investors with a high-risk appetite looking for long-term wealth creation. Those seeking short-term, low-risk investments may not find these funds suitable.
The Bandhan Financial Services Fund focuses on a single sector. Investors seeking broad diversification may not benefit from this fund, as its lack of diversification may increase risk.
This fund may be ideal for investors specifically looking to invest in the financial sector.
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.