Bandhan Multi Asset Allocation Fund - Direct Plan
Multi Asset Allocation Funds are type of open-ended hybrid schemes that invest in atleast three asset classes with a minimum allocation of 10% each. The three most popular asset classes include Equity, Debt, and Gold.
As each asset class performs differently in varied economic conditions, combining them creates a portfolio that may provide relatively stable returns.
The scheme aims to invest in different asset classes to provide relatively stable returns
Click here to watch the Fund Manager share exclusive insights on the fund.
What is Bandhan Multi Asset Allocation Fund?
Think of a multi-asset allocation fund as a balanced diet, offering a blend of equities, debt, gold, and international securities aiming to help manage risk and tap into growth opportunities across various markets. The Bandhan Multi Asset Allocation Fund follows this approach aiming to achieve balanced growth.
The Bandhan Multi-Asset Allocation Fund is a hybrid mutual fund that aims to diversify investments across multiple asset classes. This multi-asset allocation mutual fund is required to allocate at least 10% of its corpus to three or more asset classes, including domestic and international equities, debt, gold, silver, and arbitrage.
The fund allocates 65%-80% of its corpus to equities, with 10%-30% each in debt instruments, money markets, and gold/silver ETFs. It may also invest up to 15% of its net assets in foreign securities, adjusting allocations based on market conditions.
The fund’s diversified allocation aims to spread risk and allows investors to potentially benefit from various asset classes. However, as it invests in equities, it remains vulnerable to market volatility. Macroeconomic factors can affect the multi-asset funds’ returns. Investments in debt securities also carry risks such as credit, interest rate, inflation, and reinvestment risk, making multi-asset funds generally high-risk investments.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
- For 10% of investment: NIL
• For remaining investment:
0.50% if redeemed/ switched out within 1 year from the date of allotment.
If redeemed/switched out after 1 year from the date of allotment - NIL
- For 10% of investment: NIL
This scheme has not completed one year.
Scheme is suitable for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : 65% Nifty 500 TRI + 25% NIFTY Short Duration Debt Index + 5% Domestic prices of gold + 5% Domestic prices of silverAlternate Benchmark :
- Performance
- Portfolio
- Download
- Details
This fund is managed by Mr. Viraj Kulkarni (w.e.f 31/01/2024), Mr. Daylynn Pinto (w.e.f 31/01/2024), Mr. Nemish Sheth (w.e.f 31/01/2024), Mr. Gautam Kaul (w.e.f 31/01/2024), Mr. Brijesh Shah (w.e.f 10/06/2024), Ms. Ritika Behera (w.e.f 31/01/2024), Mr. Gaurav Satra (w.e.f 07/06/2024)
View fund performance of other funds managed by Mr. Viraj Kulkarni, Mr. Daylynn Pinto, Mr. Nemish Sheth, Mr. Gautam Kaul, Mr. Brijesh Shah, Ms. Ritika Behera, Mr. Gaurav Satra
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 Multi Asset Allocation Fund
(Scheme Risk-o-meter)
65% Nifty 500 TRI + 25% NIFTY Short Duration Debt Index + 5% Domestic prices of gold + 5% Domestic prices of silver
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking*:
▪ To generate long term capital growth and income.
▪ Investment across Equity & Equity Related Instruments, Debt & Money Market Securities and Gold/Silver related instruments
Who Should Invest in Bandhan Multi Asset Allocation Fund?
The Bandhan Multi-Asset Allocation Fund may suit investors seeking diversification across equity, debt, money markets, gold, and silver.
While diversification helps manage risk, the fund’s significant equity exposure makes it a high-risk mutual fund, suitable for investors with a high-risk appetite seeking portfolio diversification.
Multi-asset mutual funds may potentially be suitable for investors with a long-term horizon, looking for potential growth.
FAQs on Multi Asset Allocation Funds
What is the meaning of a Multi Asset Allocation Fund in India?
Multi Asset Allocation Funds in India are mandated to invest at least 10% of their corpus in three different asset classes. They aim to diversify an investor's portfolio and potentially reduce risk.
Are Multi Asset Allocation Fund returns high?
Multi Asset Fund returns may potentially be based on their asset allocation. Funds that invest a significant amount of their corpus in equities may potentially generate higher returns. However, Multi Asset Allocation Fund returns cannot be guaranteed and are subject to market risks. Investors must read all scheme-related information carefully and evaluate their investment goals before investing.
What are the benefits of a Multi Asset Fund?
Multi Asset mutual Funds allow investors to diversify their portfolios across different asset classes. Diversification has several benefits; it helps spread out risk and investors may potentially benefit from the performance of a variety of asset classes.
Are Multi allocation funds risky?
Yes, Multi Asset Funds are considered a high-risk investment option. While diversification may potentially help spread out risk, Multi Asset Allocation Mutual Funds are vulnerable to market risks and volatility.
Is Bandhan Multi Asset Allocation Fund a suitable long-term investment?
Yes, Bandhan Multi Asset Allocation Fund may be a suitable investment for investors with a long-term investment horizon. This fund aims to generate long-term capital growth and income.
What does a Multi Asset Fund invest in?
A Multi Asset Fund is mandated to invest at least 10% of its total corpus in at least three different asset classes. The fund may invest in domestic or international equities, debt securities, arbitrage or commodities such as gold and silver.
What is the difference between Multi cap and Multi Asset allocation funds?
A Multi cap Mutual Fund is an equity fund that invests in equities of companies belonging to different market caps. Multi Asset Allocation Funds are a hybrid scheme that invest in at least three different asset classes including equities, debt, gold, silver, arbitrage etc. While both the funds aim to diversify an investor's portfolio, multi-cap funds aim for diversification within one asset class, whereas Multi Asset Allocation Funds diversify across asset classes.
How does a Multi Asset Allocation Fund reduce the impact of volatility?
As Multi Asset Allocation Funds invest in a variety of asset classes, during volatile markets, they can allocate a greater amount of their corpus to a relatively stable asset class. Asset classes such as debt and arbitrage that are less vulnerable to market volatility may reduce the impact of volatile markets.