Bandhan Focused Equity Fund - Direct Plan

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Bandhan Focused Equity Fund - Direct Plan

An open ended equity scheme investing in maximum 30 stocks with multi cap focus

EquityInception Date:16/03/2006
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What is the Meaning of Focused Equity Fund?

Focused equity funds are a type of equity fund that invest in a limited number of stocks. Focused funds can invest in a maximum of thirty stocks. In comparison, most other mutual funds can invest in a maximum of a hundred stocks. These stocks may belong to small cap, mid cap and large cap companies with a focus on only a few sectors. Focused equity funds invest in high-performing assets to earn potential returns.

Focussed equity funds invest in a limited number of stocks, this may allow the fund to make potentially higher gains. This fund does not invest across sectors, consequently, it may not be ideal for investors seeking diversification. Moreover, limiting these funds to a few stocks makes them vulnerable to volatility. Nevertheless, focused equity funds can be suitable for investors with a high-risk appetite, looking to maximise their gains. As investments in stocks are made after in-depth research and assessment, focused funds may potentially give 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)

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Annualised Returns(as on 30th Apr, 2024)37.72%1yr17.43%3yr14.82%5yr
NAV 72.9090 as on 22/05/20241 Day Change: -0.02(-0.03%)

Scheme is suitable for a minimum investment horizon of more than 3 years

Tier 1 Benchmark : S&P BSE 500 TRIAlternate Benchmark : Nifty 50 TRI

Performance as on 30th April 2024

Scheme NamesCAGR Returns (%)Current value of Investment of 10,000
1 year3 year5 year10 year16/03/2006 Since inception1 year3 year5 year10 year16/03/2006 Since inception
Bandhan Focused Equity Fund - Regular Plan - Growth37.7217.4314.8213.0811.6213,80816,20119,97434,22773,405
38.2620.4418.1916.26N.A.13,86317,48123,08845,168N.A.
26.2716.9215.3014.3012.6812,65115,99020,39238,11787,129
^ 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/3spfzbo

Bandhan Focused Equity Fund

(Scheme Risk-o-meter)

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

S&P 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 Fund Meaning: Focused funds are a type of equity fund. Focused equity funds can invest in equity and equity-related instruments of a maximum of thirty companies.

Equity Fund Meaning: Equity funds are a broader classification of funds. There are many types of equity funds. They are primarily invested in stocks.

Focused Funds Invest in: According to Regulator’s guidelines, focused equity funds can be invested in a maximum of thirty stocks.

Equity Funds Invest in: There is no standard limit on the number of stocks an equity fund can invest in, although for a significant number of equity funds, the limit is one hundred stocks.

Who should Invest in Focused Funds?

Focused equity funds are categorised as high-risk investment options. As they invest in a small number of stocks, they are vulnerable to market volatility. Moreover, as they are focused on a small sector, the benefits of diversification of investments may be nullified. They are not suitable for investors seeking diversification of assets.

Focused mutual funds are a long-term investment option. They are ideal for investors seeking investments in a concentrated portfolio of equity and equity-related instruments of a maximum of thirty companies.

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.

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