Bandhan Transportation And Logistics Fund - Direct Plan

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Bandhan Transportation And Logistics Fund - Direct Plan

Sector Fund - An open-ended equity scheme investing in transportation and logistics sector

EquityInception Date:27/10/2022
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What is a Transportation and Logistics Fund?

A transportation and logistics mutual fund is a type of sectoral mutual fund that invests in stocks of companies involved in the transportation and logistics sector. Bandhan Transportation and Logistics Fund is an open-ended equity scheme and is mandated to invest at least 80% of the funds corpus in equities and equity-related securities of companies engaged in the transportation and logistics sector.

According to the mandate, transport and logistics funds can invest a maximum of 20% in equities of companies not engaged in the transportation and logistics sector. To diversify the fund's assets and reduce potential risk, the mandate permits a maximum investment of 20% in debt and money market instruments.

The transport and logistics sector plays an important role in the Indian economy, and transportation and logistics mutual funds give investors the opportunity to potentially benefit from the performance of the entire sector rather than individual company stocks. However, as a sectoral fund, transport and logistics funds are not diversified across sectors or asset classes. The primary focus on a single sector may increase the risk level of this fund. Bandhan Transportation and Logistics Fund is categorised as a high-risk investment.

Transport and logistics mutual funds are predominantly invested in equities. Consequently, these funds are taxed similarly to equity funds. Units held for less than 12 months are taxed as Short-Term Capital Gains at 15%. Units held for over 12 months are subject to Long-Term Capital Gains Tax at 10%.

  • 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.

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Annualised Returns(as on 29th Feb, 2024)44.63%1yrN.A.3yrN.A.5yr
NAV 15.2440 as on 04/03/20241 Day Change: 0.03(0.16%)

Scheme is suitable for a minimum investment horizon of more than 5 years

Tier 1 Benchmark : Nifty Transportation and Logistics IndexAlternate Benchmark : Nifty 50 TRI

Performance as on 31st January 2024

Scheme NamesCAGR Returns (%)Current value of Investment of 10,000
1 year3 year5 year10 year25/10/2022 Since inception1 year3 year5 year10 year25/10/2022 Since inception
Bandhan Transportation and Logistics Fund - Regular Plan - Growth44.63N.A.N.A.N.A.35.0114,463N.A.N.A.N.A.14,634
50.9927.8821.1117.9438.1715,09920,93926,06552,13715,070
^ Tier 1 Benchmark   |   ^^ Alternate Benchmark   |   ^^^ Tier 2 Benchmark

This fund is managed by Mr. Daylynn Pinto (w.e.f 27/10/2022)Mr. Harshal Joshi (w.e.f 27/10/2022)Ms. Nishita Doshi (w.e.f 27/10/2022)

View fund performance of other funds managed by Mr. Daylynn Pinto, Mr. Harshal Joshi, Ms. Nishita Doshi

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 Transportation And Logistics Fund

(Scheme Risk-o-meter)

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

Nifty Transportation and Logistics Index

(Tier 1 Benchmark Risk-o-meter)

This product is suitable for investors who are seeking* :

  • To create wealth over long term.
  • Investment in a portfolio of equity and equity related instruments of the companies engaged in the transportation and logistics sector

 

Who Should Invest in Transport and Logistics Mutual Funds?

Bandhan Transportation and Logistics Fund is a sectoral fund primarily investing in equities of companies involved in the transportation and logistics sector. This fund is suitable for investors seeking long-term wealth creation by investing in this sector.

Sectoral funds are inherently risky investments due to their limited diversification across sectors and asset classes. As an equity instrument, this fund is also subject to market volatility and fluctuations and is vulnerable to major macroeconomic factors such as fuel prices and export policies. Price changes in raw materials integral to the transportation and logistics industry may impact the returns of this fund as well. Consequently, Bandhan Transportation and Logistics Fund is categorised as a high-risk investment option. This fund is suitable for investors with a high-risk tolerance and long-term investment horizon.

Sectoral funds such as Bandhan Transportation and Logistics Fund may not be suitable for investors seeking a diversified scheme with respect to asset class or sectors. Investors seeking to potentially benefit from the performance of the transport and logistics sector may be suited to this fund.

FAQs on Transportation and Logistics Fund

What is a transport and logistics mutual fund?

A transport and logistics mutual fund invests in equities and equity-related securities of companies involved in the transportation and logistics sector. According to the mandate, at least 80% of the funds corpus has to be invested in equities of companies involved in this sector.

Are transportation and logistics funds safe?

Transport and logistics funds are categorised as high-risk investment options. They invest predominantly in a single sector and asset class. The lack of diversification increases the potential risk. Moreover, as these funds are invested in equities, they are vulnerable to market volatility and fluctuations. They are also vulnerable to macroeconomic factors such as export policies.

Are logistics and transport funds a suitable short-term investment?

Logistics and transport funds are usually classified as long-term investments. They are suitable for investors seeking to create wealth in the long term. However, the fund does not have a lock-in period, allowing an investor to redeem their investment whenever required.

What are the benefits of transportation and logistics mutual funds?

Transportation and logistics mutual funds allow investors to potentially benefit from the performance of the entire sector rather than individual stocks of individual companies. Although transportation and logistics funds are not a diverse investment, an investor can diversify their portfolio as a whole by investing in a particular sector, i.e. transportation and logistics.

Do transportation and logistics funds invest in debt securities?

Transportation and logistics funds are mandated to invest at least 80% of their corpus in equities of companies involved in the transportation and logistics sector. The mandate allows the fund to allocate a maximum of 20% of total assets to debt and money market securities. Although this fund is primarily an equity fund, a portion of the fund's assets may be allocated to equity.

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