Bandhan Innovation Fund - Direct Plan
An open-ended equity scheme following an innovation theme
What is an Innovation Fund in India?
Think about how QR code payments have made transferring money a breeze or how ordering food online has become second nature. We have moved from clunky physical storage to the seamless world of cloud storage, and electric vehicles are starting to dominate the roads over petrol cars. An innovation fund allows you to invest in companies driving these transformations, offering you a chance to be part of the future.
The Bandhan Innovation Fund is a thematic fund that invests in innovative companies. It is required to invest at least 80% of its assets in equities and equity-related instruments aligned with the innovation theme. The remaining 20% may be invested in other equities, debt, or money market instruments.
Innovation mutual funds focus on companies that bring new ideas to life, leading to improved products and services. These funds are diversified, investing across market caps and various sectors such as automotive, internet, fintech, pharma, and speciality chemicals.
While diversification across sectors can reduce risk, innovation mutual funds are still high-risk due to their heavy equity focus. The Bandhan Innovation Fund is particularly sensitive to market volatility and external factors like government policies, global socio-political movements, and other macroeconomic factors.
As a thematic equity scheme, the Bandhan Innovation Fund is taxed like equity mutual funds. Gains over ₹1 lakh on units held for more than one year are taxed at 10% (LTCG), while short-term gains (STCG) on units held for less than a year are taxed at 15%.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
• If redeemed/switched out within 30 days from the date of allotment: 0.50% of the applicable NAV
• If redeemed/switched out after 30 days from date of allotment – Nil
This scheme has not completed one year.
Tier 1 Benchmark : NIFTY 500 TRIAlternate Benchmark : Nifty 50 TRI
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This fund is managed by Mr. Manish Gunwani (w.e.f 30/04/2024), Mr. Brijesh Shah (w.e.f 30/04/2024), Mr. Prateek Poddar (w.e.f 07/06/2024)
View fund performance of other funds managed by Mr. Manish Gunwani, Mr. Brijesh Shah, Mr. Prateek Poddar
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 Innovation Fund
(Scheme Risk-o-meter)
NIFTY 500 TRI
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking*:
• To create wealth over a long term
• Investment predominantly in equity and equity-related instruments of companies following innovation theme.
Who Should Invest in an Innovation Fund in India?
Innovation mutual funds in India offer diversification by investing across sectors and market capitalizations. Investors looking to diversify their portfolio while benefiting from various industries may find this fund suitable.
Despite diversification, innovation funds are high-risk due to market volatility and liquidity risks. They may be suited for investors with a high-risk tolerance.
Innovation funds are a long-term investment, as companies undertaking innovative developments and projects take time to grow. These funds are ideal for investors looking to create long-term wealth and willing to accept the high-risk, potentially high-reward nature of investing.
FAQs on Innovation Fund
Are innovation mutual funds risky?
Yes, innovation funds are a type of thematic investment that has a high risk level. They invest in equities of companies following an innovation theme. The fund may be vulnerable to market volatility, macroeconomic fluctuations, and other risks.
What does Bandhan Innovation Fund invest in?
Bandhan Innovation Fund is mandated to invest 80% of its corpus in equities and equity-related securities of companies following the innovation theme. The fund may invest in leading innovators, rising innovators, and emerging innovators.
Are innovation funds in India diversified?
Yes, innovation funds are diversified across market caps and sectors. They may invest in various sectors across market caps, including pharmaceuticals, fintech, auto, internet, etc. However, these funds are not diversified across asset classes as they invest predominantly in equities.
Does Bandhan Innovation Fund have a lock-in period?
No, Bandhan Innovation Fund does not have a lock-in period. Investors can withdraw from this fund whenever required.
What sectors does Bandhan Innovation Fund invest in?
Bandhan Innovation Fund invests in various sectors such as fintech, auto, internet, pharmaceuticals, etc.
Can you invest in Bandhan Innovation Fund via SIP?
Yes, you can invest in Bandhan Innovation Fund via SIP or lumpsum. The minimum SIP amount for this fund is Rs.100.
Are innovation fund returns high?
Innovation funds may be suitable for investors seeking wealth creation in the long term. They are a high-risk-return investment. However, all mutual funds are subject to market risks; returns may be dependent on market conditions.