Bandhan Mutual Fund recently launched the “Bandhan Financial Services Fund” on July 10, 2023. This NFO is an open-ended equity scheme, offering investors the opportunity to benefit from the multi-year growth opportunities in the financial services sector. Given how the financial services sector has outperformed most other sectors and is still expected to go beyond, this NFO aims to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies engaged in financial services
The NFO is open for subscription from July 10th, and will end on July 24th, 2023. Scheme will re-open for continuous Sale and Repurchase within 5 Business Days from the date of allotment of units under NFO. Subscriptions can be made starting at Rs. 1000. Both a Regular Plan and a Direct Plan are available.
About Bandhan Mutual Fund
Established on March 13, 2000, Bandhan Mutual Fund has emerged as a leading player in India’s domestic market. With substantial Assets under Management (AUM), it manages assets valued at Rs. 111,592.46 crores as of March 2023.
In April 2022, Bandhan, along with a consortium consisting of Bandhan Financial Holdings Limited, GIC (Singapore’s Sovereign Fund), and ChrysCapital, acquired IDFC Asset Management Company. Consequently, in March 2023, the IDFC Mutual Fund was rebranded as Bandhan Mutual Fund.
Despite being a relatively new entrant, Bandhan Mutual Fund has made a significant impact on the domestic financial landscape. It offers a diverse range of 76 mutual fund schemes, spanning debt, equity, hybrid, and other categories, catering to the varied needs of investors.
Bandhan Financial Services Fund – NFO Detail
| Type of Offer | NFO (New Fund Offer) |
| Fund House | Bandhan Mutual Fund (formerly IDFC Mutual Fund) |
| Name of the Fund | Bandhan Financial Services Fund |
| Type of Scheme | Open-ended |
| Category of Scheme | Equity Scheme – Sectoral |
| NFO Starts | 10-July-2023 |
| NFO Ends | 24-July-2023 |
| NFO Unit Price | Rs 10 per unit |
| Minimum Investment | Rs. 1000 |
| Plans | Regular, Direct |
| Options | Growth, IDCW |
| Entry Load | Not Applicable |
| Exit Load | 1% |
| Investment Manager | Bandhan AMC Limited (formerly IDFC Asset Management Company Limited) |
| Fund Manager | Mr. Sumit Agrawal and Mr. Manish Gunwani |
Bandhan Financial Services Fund NFO – Scheme Objective
The investment objective of the Scheme is to generate long-term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in financial services.
Bandhan Financial Services Fund NFO – Who Can Invest?
This product is suitable for investors who are seeking*:
- To create wealth over a long term.
- Investors who have a relatively high risk appetite for higher returns, given that this is a sectoral fund.
- Investors looking to diversify their investment in a sector with rapid expansion and potential growth opportunities.
How Will the Scheme Allocate Its Asset
- 80-100% in Equity and equity related instruments of companies engaged in the financial services sector.
- 0-20% in Equities & Equity related securities other than above and overseas securities.
- 0-20% in Debt Securities and Money Market Instruments (including Government securities, Securitised debt)
- 0-10% in Units issued by REITs & InvITs.
Where Will the Scheme Invest?
The corpus of the Scheme will be invested in equity and equity related products & in debt and money market instruments. At least 80% of investments in equity and equity related securities shall be companies engaged in the Financial Services sector. Subject to the Regulations, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities / instruments:
- Equity and Equity related instruments of the relevant sectors include equity warrants and convertible instruments.
- ADRs / GDRs issued by Indian company’s subject to necessary regulatory requirements (or such other limits that the regulations may permit from time to time).
- Stock futures / index futures and such other permitted derivative instruments.
- Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government Securities/Corporate Bonds as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).
- Securities guaranteed by the Central and State Governments (including but not limited to coupon 25 bearing bonds, zero coupon bonds and treasury bills).
- Debt instruments issued by domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee.
- Corporate debt and securities (of both public and private sector undertakings) including Bonds,Debentures, Notes, Strips, etc.
- Debt instruments (both public and private sector) issued by banks / development financial institutions.
- Money market instruments permitted by SEBI include call money market or in alternative investments for the call money market as may be provided by RBI to meet the liquidity requirements.
- Certificate of Deposits (CDs).
- Commercial Paper (CPs).
- Securitized debt.
- The non-convertible part of convertible securities.
- Any other domestic fixed income securities as may be permitted by SEBI/ RBI from time to time.
- Any overseas debt instrument, as permitted by extant regulations.
- Overseas securities including stocks, equity Mutual Funds and other permitted overseas instruments.
- Any other securities / instruments as may be permitted by SEBI from time to time.
Bandhan Financial Services Fund NFO – SID (Scheme Information Document)
Please click here to read the SID (Scheme Information Document) of this upcoming NFO scheme.
How to Invest?
Visit this page on the AMC website for further detail and investment.
Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.
