Bandhan Focused Equity Fund - Direct Plan
An open ended equity scheme investing in maximum 30 stocks with multi cap focus
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What is the Meaning of Focused Equity Fund?
Like a chef choosing the finest ingredients for a signature dish, Focused Equity Funds concentrate on a select group of high-quality stocks, aiming to achieve strong returns by investing in a limited number of assets.
Focused equity funds invest in a limited number of stocks, with a maximum of thirty holdings. These stocks may span small, mid, and large-cap companies, often with a focus on select sectors. Focused equity funds invest in high-performing assets to earn potential returns.
By investing in a limited number of stocks, focused equity funds can achieve potentially higher gains. However, the lack of sector diversification and concentration of assets make these funds vulnerable to volatility. They are ideal for high-risk investors seeking potential long-term capital appreciation through carefully selected stocks, which may yield favourable returns.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
a) If redeemed/switched out within 365 days from the date of allotment:
->Upto 10% of investment:Nil,
->For remaining investment: 1% of applicable NAV.
b) If redeemed / switched out after 365 days from date of allotment: Nil. (w.e.f. May 08, 2020)
Scheme is suitable for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : BSE 500 TRIAlternate Benchmark : Nifty 50 TRI
- Performance
- Portfolio
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Performance as on 31st October 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 16/03/2006 Since inception | 1 year | 3 year | 5 year | 10 year | 16/03/2006 Since inception | |
| Bandhan Focused Equity Fund - Regular Plan - Growth | 46.78 | 16.29 | 18.11 | 12.27 | 12.23 | 14,694 | 15,747 | 23,009 | 31,839 | 85,962 |
| 35.79 | 15.64 | 19.83 | 14.34 | N.A. | 13,590 | 15,483 | 24,731 | 38,233 | N.A. | |
| 25.78 | 11.59 | 15.99 | 12.43 | 12.77 | 12,586 | 13,907 | 21,009 | 32,313 | 94,014 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Sumit Agrawal (w.e.f 20/10/2016)
View fund performance of other funds managed by Mr. Sumit Agrawal
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 Focused Equity Fund
(Scheme Risk-o-meter)
BSE 500 TRI
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To create wealth over long term.
- Investment in a concentrated portfolio of equity and equity related instruments of up to 30 companies
How does a Focused Equity Fund differ from an Equity Fund?
• Focused equity funds invest in a maximum of thirty stocks, following regulatory guidelines. In contrast, equity funds can invest in a broader range of stocks, often up to a hundred.
• Equity funds cover a broader category, whereas focused equity funds concentrate on a smaller number of equity and equity-related instruments.
Who should Invest in Focused Funds?
Focused equity funds are high-risk investments, as their limited number of holdings makes them vulnerable to market volatility. Since they concentrate on select sectors, they offer little diversification and may not be suitable for investors seeking broad exposure.
Focused mutual funds may be suitable for long-term investors seeking a concentrated portfolio of up to thirty stocks in equity and equity-related instruments.
FAQs on Focused Equity Funds
What is a focused fund?
A focused fund or focused equity fund is a type of equity fund that invests in a limited number of stocks. According to SEBI regulations, focused equity funds can invest in stocks of a maximum of thirty companies.
How is a focused equity fund different from a Flexi Cap fund?
Focused equity funds can invest in a maximum of only thirty stocks/companies. They are not suitable for investors seeking diversification of investments. Contrarily, flexi cap funds are suitable for investors seeking flexibility in asset allocation. While both these funds are high-risk investments, Flexi Cap funds are comparatively less vulnerable to market volatility because they diversify the investors assets.
What are the benefits of focused funds?
Focused equity funds are beneficial for investors with a high-risk appetite. They have the potential to give better returns in the long-term.
What is the minimum investment in a focus fund?
The minimum investment in a focus fund via SIP is ₹100. The minimum amount via lump sum is ₹1000.
How is a Focused Equity Fund different from a Value Fund and a Multi Cap Fund?
Focussed funds focus on a limited number of stocks with a potential to give better returns. Value funds focus on undervalued stocks with a long-term growth potential. Focus funds do not necessarily invest in undervalued stocks. Multi cap funds invest in companies belonging to different market caps. They are suitable for investors seeking diversification of investments. Contrarily, focused funds invest only in a limited number of stocks.
How are focused mutual funds taxed?
As an equity fund, focused mutual funds are taxable under long-term capital gains tax at the rate of 10% if it exceeds ₹1 lakh.