Bandhan Asset Allocation Fund Of Funds - Conservative Plan - Direct Plan
An open ended fund of fund scheme investing in schemes of Bandhan Mutual Fund - equity funds and debt funds excluding Gold ETF
What is an Asset Allocation Fund of Funds - Conservative Plan?
The Bandhan Asset Allocation Fund of Funds - Conservative Plan offers a balanced investment approach by spreading your risk across multiple asset classes, primarily focusing on debt for relative safety while including equity for growth potential. It’s suitable for investors who are looking for a more cautious approach without missing out on growth potential. Let’s explore how this fund works.
Asset allocation funds are mutual funds that create a diversified portfolio by investing across different asset classes based on the investor’s risk tolerance. A Fund of Funds (FoF) further diversifies by investing in other mutual funds with varying asset allocations, potentially helping to reduce risks.
The Bandhan Asset Allocation Fund of Funds - Conservative Plan invests 10%-30% in equity funds and 35%-90% in debt funds, adopting a moderately high-risk profile. For added diversification, up to 30% may be invested in gold or commodity funds, and up to 5% in in debt and money market instruments.
While diversification may reduce risk, the Bandhan Asset Allocation Fund of Fund - Conservative Plan is still exposed to risks such as market, credit, interest rate, and rating migration risks.
The diversification of assets in an asset allocation mutual fund of fund may potentially benefit investors seeking diversification in their portfolio. Moreover, the returns may be optimal in the long term. The effect of poor performance of one asset class may potentially be lowered due to the diversified portfolio of the fund.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
If redeemed/switched out within 365 days from the date of allotment:
->Upto 10% of investment:Nil,
->For remaining investment: 1% of applicable NAV.
If redeemed / switched out after 365 days from date of allotment: Nil. (w.e.f. May 08, 2020)
Scheme is suitable for a minimum investment horizon of 3 years
Tier 1 Benchmark : CRISIL Hybrid 85+15 - Conservative IndexAlternate Benchmark : CRISIL 10 Year Gilt Index
- Performance
- Portfolio
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Performance as on 30th September 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 11/02/2010 Since inception | 1 year | 3 year | 5 year | 10 year | 11/02/2010 Since inception | |
| Bandhan Asset Allocation Fund of Funds - Conservative Plan - Regular Plan - Growth | 14.42 | 7.85 | 8.21 | 8.08 | 8.34 | 11,451 | 12,546 | 14,844 | 21,771 | 32,317 |
| 13.50 | 7.72 | 9.34 | 9.33 | 8.96 | 11,354 | 12,503 | 15,635 | 24,412 | 35,113 | |
| 10.32 | 5.37 | 5.64 | 7.15 | 6.45 | 11,035 | 11,702 | 13,162 | 19,955 | 24,990 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Viraj Kulkarni (w.e.f 07/01/2022)
View fund performance of other funds managed by Mr. Viraj Kulkarni
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 Asset Allocation Fund of Funds Conservative Plan
(Scheme Risk-o-meter)
CRISIL Hybrid 85+15 - Conservative Index
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate capital appreciation and income over long term.
- Investment in different Bandhan Mutual Fund schemes based on a defined asset allocation model.
Who Should Invest in Asset Allocation Mutual Fund of Funds - Conservative Plan?
Bandhan Asset Allocation Fund of Funds - Conservative Plan is ideal for investors seeking a diversified portfolio, as it invests in Bandhan debt and commodity-based funds with a focus on debt. It is classified as moderately high-risk and may appeal to investors with a higher risk tolerance, looking for long-term capital appreciation and income.
FAQs on Asset Allocation Fund of Fund - Conservative Plan
What is the meaning of an Asset Allocation Fund of Fund - Conservative plan?
An Asset Allocation fund of fund invests in other mutual funds across asset classes. Bandhan Asset Allocation Fund of Funds - conservative plan adopts a conservative investment strategy and is mandated to invest between 35%-90% of its corpus in debt funds. A maximum of 30% can be invested in equity funds, including off-shore equity funds.
What are the advantages of Asset Allocation Fund of Funds - Conservative plan?
A Fund of Fund (FoF) allows investors to diversify their portfolios by investing in funds across asset classes. This diversification may potentially help mitigate risk. Asset Allocation Fund of Funds - conservative plan may be suitable for investors with a moderately high-risk tolerance, seeking potentially long-term capital appreciation and income.
Are Asset Allocation Funds of Funds - Conservative plan risky?
Asset Allocation Fund of Funds - Conservative plan are relatively less risky as a larger corpus of the fund is invested in debt. However, they are vulnerable to market risks, credit risk, interest rate risks etc. Investors must read all scheme-related documents carefully and consult a financial advisor before investing.
Should you invest in Asset Allocation Funds - Conservative plan for the short term?
No, Asset Allocation Fund of Funds - Conservative plans may potentially suit investors with a long-term investment horizon. They aim to generate capital appreciation and income over the long term.
Who should invest in Asset Allocation Funds of Funds - Conservative plan?
Asset Allocation Fund of Funds are suitable for investors seeking diversification in their financial portfolio. Bandhan Asset Allocation FoF may be suitable for investors with a moderate risk tolerance, seeking investments in both, equity and debt. This fund has the potential to generate long-term capital appreciation and income.