Bandhan Innovation Fund - Direct Plan
An open-ended equity scheme following an innovation theme
What is an Innovation Fund in India?
An innovation fund is a type of thematic mutual fund that invests in equities of companies following the innovation theme. Bandhan Innovation Fund is mandated to invest a minimum of 80% of its assets in equity and equity-related instruments following an innovation theme. The fund may also invest a maximum of 20% of its corpus in other equity and equity-related securities and debt and money market securities.
Innovation mutual funds identify companies involved in the practical implementation of ideas, resulting in new and improved goods and services. Innovation investment funds are diversified schemes as they invest in companies across market caps and sectors, such as auto, internet, fintech, pharma, specialty chemicals, etc.
Although diversification may spread out risk, innovation mutual funds are a high-risk investment option. Innovation funds invest predominantly in equities; they are not diversified across asset classes. A majority of Bandhan Innovation Fund’s corpus is invested in equities, which may be vulnerable to market volatility and fluctuations. Moreover, the performance of an innovation fund may be dependent on external factors such as government policies, global socio-political factors, and other macroeconomic factors.
Innovation in various sectors is a time-consuming process. As a result, innovation funds are a long-term investment.
Bandhan Innovation Fund is a thematic equity scheme. This fund is subject to taxes, similar to equity mutual funds. Units held for more than one year and above ₹1 lakh are subject to LTCG tax at 10%. STCG is levied on units held for less than a year 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
- Performance
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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 are a diversified investment option as they invest across market capitalisation and sectors. Investors seeking to diversify their portfolio to spread out risk while potentially benefiting from the performance of different sectors and market caps may be suitable for this fund.
However, despite diversification, innovation funds are a high-risk investment. They may be vulnerable to market volatility, fluctuations, liquidity risk, etc. Investors with a high-risk tolerance may be suited for this scheme.
Companies undertaking innovative developments and projects require time to develop and grow. As a result, innovation mutual funds are a long-term investment option. Investors seeking an opportunity for wealth creation in the long term may potentially benefit by investing in an innovation fund. Innovation funds are a high-risk-return investment.
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.