Bandhan Transportation And Logistics Fund - Direct Plan
Sector Fund - An open-ended equity scheme investing in transportation and logistics sector
What is a Transportation and Logistics Fund?
Imagine the network of trucks, ships, and warehouses that ensures packages arrive at your doorstep. The Bandhan Transportation and Logistics Fund invests in companies across this essential sector, from shipping leaders to logistics innovators, providing opportunities to benefit from their growth potential.
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.
The fund can allocate up to 20% of its assets to companies outside the transportation and logistics sector and up to 20% in debt and money market instruments to manage potential risk and provide some diversification.
The transportation and logistics sector is critical to the Indian economy, and investing in a sectoral fund like this provides exposure to the entire sector rather than individual stocks. However, the transport and logistics fund's lack of diversification across sectors or asset classes increases its risk.
As a predominantly equity-based fund, Bandhan Transportation and Logistics Fund is considered a high-risk investment. It follows the same tax structure as equity funds, with Short-Term Capital Gains (STCG) taxed at 15% for units held under 12 months and Long-Term Capital Gains (LTCG) over ₹1 lakh taxed at 10% for units held over 12 months.
- 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.
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
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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 | 25/10/2022 Since inception | 1 year | 3 year | 5 year | 10 year | 25/10/2022 Since inception | |
| Bandhan Transportation and Logistics Fund - Regular Plan - Growth | 41.35 | N.A. | N.A. | N.A. | 31.00 | 14,148 | N.A. | N.A. | N.A. | 17,251 |
| 50.15 | 27.27 | 24.96 | 13.60 | 35.11 | 15,032 | 20,657 | 30,503 | 35,816 | 18,360 | |
| 28.30 | 12.35 | 16.61 | 12.62 | 18.25 | 12,839 | 14,195 | 21,582 | 32,844 | 14,027 | |
| ^ 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)
View fund performance of other funds managed by Mr. Daylynn Pinto, Mr. Harshal Joshi
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 Transportation And Logistics Fund
(Scheme Risk-o-meter)
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?
The Bandhan Transportation and Logistics Fund is a sectoral fund ideal for investors looking for long-term wealth creation opportunities through investments in the transportation and logistics sector.
Sectoral funds carry higher risk due to limited diversification, and this fund is no exception. It is sensitive to macroeconomic factors such as fuel prices, export policies, and raw material costs, which can affect returns. As a high-risk investment, it may be suited for investors with a high-risk tolerance and a long-term horizon.
Sectoral funds such as Bandhan Transportation and Logistics Fund may not be suitable for investors seeking broad diversification across sectors or asset classes. It may be ideal for those looking to benefit from the performance of the transport and logistics sector.
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.