In today’s economy, most of us are focused on building wealth for our future and that of our kids. There is no denying the fact that stock market investing has become a popular way to do so. Among the various investment options, mutual funds are a favourite choice for many. Today, we are going to talk about one such mutual fund scheme that offers us a way to balance safety and growth. It invests in a mix of large-cap and mid-cap stocks. Let’s explore the details of the Bandhan Core Equity Fund Direct Plan portfolio and its performance.
Large-cap stocks are known for their stability and reliability. On the other hand, mid-cap stocks offer greater growth potential. The Bandhan Core Equity Fund allows you to benefit from both of these advantages. This means you get stability from well-established companies and growth opportunities from emerging businesses.
In this blog, we will provide you with a detailed overview of the Bandhan Core Equity Fund – Direct Growth Plan, along with insights into Bandhan Core Equity Fund Growth Nav history.
Let us begin!
Fund Management and Objectives
Mr. Harsh Bhatia manages the Bandhan Core Equity Fund. The fund aims to balance stability and growth. By investing in the top 250 companies, it provides diversification. According to regulations, the Bandhan core equity fund growth-(direct plan) must invest at least 35% of its assets in both large-cap and mid-cap stocks. This means that 70% of the fund’s investments will be in stocks of these companies.
Since it aims to invest in a mix of Large-cap stocks and mid-cap stocks, this balance makes the Bandhan Core Equity Fund a good option for investors looking for long-term growth without much volatility.
Bandhan Core Equity Fund – Direct Equity is open-ended, which means you can enter or exit the fund as per your investment needs. It aims to provide high returns while managing risk effectively through diversified investments.
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Performance and Returns
The Bandhan Core Equity Fund Direct Growth has grown by 16.75% since its launch.
Here’s how the fund has performed over different periods:
- 1 Year: The fund has increased by 37.51%.
- 2 Years: The fund has grown by 31.82%.
- 3 Years: The fund has risen by 22.52%.
As of November 21, 2024, the Bandhan Core Equity Direct Fund Growth NAV is ₹144.73.
Investment Allocation
The Bandhan Core Equity Fund Growth is primarily allocated to equity securities. Here is a look at the Bandhan core equity fund portfolio:
- 94.6% of the fund is in equity, which means the fund is mainly focused on owning shares of companies. This is intended for long term growth.
- A very small 0.03% is invested in debt. This offers stability, but you get lower returns.
- The remaining 5.37% is in cash & cash equivalents.
Bandhan Core Equity Fund Portfolio by Company Size:
| Company Size | Percentage of Investment |
| Large-cap companies | 36.43% |
| Mid-cap companies | 21.06% |
| Small-cap companies | 31.32% |
| Tiny-cap companies | 11.19% |
Here is how it invests the money:
- This fund holds 110 stocks.
- The top 10 stocks make up 23.37% of the fund, and the top 5 stocks make up 14.90%.
Key Metrics
The Bandhan Core Equity Fund – Direct Plan has a well-diversified portfolio.
- Expense Ratio: 0.61%, which is relatively low compared to other equity funds.
- Fund Size: ₹6,917 Crore (as of 31-Oct-2024).
- Return Since Launch: 16.75%.
- Benchmark: NIFTY Large Midcap 250 TRI.
- Turnover: 159.00%. This indicates a moderate level of trading activity within the fund.
Bandhan Core – Sector-wise Holdings
| Sector | Fund (%) |
| Financial | 23.96 |
| Industrials | 13.69 |
| Technology | 13.37 |
| Healthcare | 10.14 |
| Consumer Discretionary | 9.99 |
| Materials | 7.53 |
| Energy & Utilities | 7.52 |
| Consumer Staples | 5.4 |
| Real Estate | 1.84 |
| Diversified | 1.16 |
| Total Sectors | 10 |
Bandhan Core Equity Fund Direct Growth Plan: Key 10 Holdings 2024
| Company Name | Sector | % Assets |
| ICICI Bank | Financial | 3.70 |
| HDFC Bank | Financial | 3.38 |
| Reliance Industries | Energy & Utilities | 3.12 |
| Infosys | Technology | 2.44 |
| Bharti Airtel | Technology | 2.26 |
| ITC | Consumer Staples | 2.02 |
| Axis Bank | Financial | 1.82 |
| Bajaj Finserv | Financial | 1.57 |
| Zomato | Technology | 1.54 |
| Info Edge (India) | Technology | 1.52 |
| Glenmark Pharmaceuticals | Healthcare | 1.48 |
Risk and Volatility
The Bandhan Core Equity Fund is classified under “Very High” risk due to its exposure to equity markets.
However, due to the aim of investing in the mix of large-cap and mid-cap stocks, a balance exists.
Here is a look at its risk profile in detail:
- Mean Return (22.85%): This is the average annual return the fund has earned.
A 22.85% mean return shows how much your investment could potentially grow over time, on average.
- Standard Deviation (14.24%): This shows how much the fund’s returns vary from the average.
A standard deviation of 14.24% shows how much the fund’s returns can bounce up and down. A higher standard deviation means more risk, while a lower number means more consistent returns.
- Sharpe Ratio (1.20): This measures how much reward (return) you get for every unit of risk you take. A ratio of 1.20 means that for every unit of risk, the fund is generating 1.20 units of return.
A Sharpe ratio above one is considered good.
- Sortino Ratio (1.91): This is similar to the Sharpe ratio but focuses on downside risk (losses) only.
A Sortino ratio of 1.91 means Bandhan core equity fund direct growth fund is doing well by helping in minimising losses while generating returns.
A higher Sortino ratio means you’re taking less risk for the same or better returns.
- Beta (0.99): This tells you how closely the fund moves with the overall market.
If the market goes up or down by 1%, the fund is likely to do the same. A Beta close to 1 means the fund has average market risk.
- Alpha (8.07): This shows how the fund has performed compared to what was expected based on market movements.
An Alpha of 8.07 means the fund has outperformed its benchmark by 8.07%.
In short, the Bandhan Core Equity Fund has a good balance of return and risk, making it attractive for investors looking for both growth potential and stability.
Taxation
For the Bandhan Core Equity Fund Direct Plan, the taxation rules are as follows:
- Short-Term Capital Gains (less than 1 year): Taxed at 15%.
- Long-Term Capital Gains (more than 1 year): Taxed at 10%, without indexation benefit.
- Dividends: Taxed at slab rates. Long-term gains up to ₹1 lakh are exempt from tax.
Minimum Investment and Lock-in Period
You can start investing in the Bandhan Core Equity Fund Direct Plan with as little as ₹1,000, either as a lump sum or through a Systematic Investment Plan (SIP). There is no lock-in period, so you can redeem your investments whenever needed.
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How to Invest in Bandhan Core Equity Fund
Investing in the Bandhan Core Equity Fund Direct Plan is simple with Shoonya. Shoonya offers a free demat account and advanced trading tools!
Investing in Lump Sum Mutual Funds Through the Shoonya Web Platform
To invest in the Bandhan Core Equity Fund Direct Plan via lumpsum through the Shoonya platform, you must follow these steps:
- First, you must log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, you must click on “MF order.”
- Search for the fund you wish to invest in; in this case, you must choose- Bandhan Core Equity Fund Direct Growth.
- Click on “Fresh” for a new investment and enter the amount you want to invest.
- You can complete your purchase by clicking the “Purchase” button.
- A payment link will be sent to your registered email. You must use the link to make the payment.
After payment, your Investing in Bandhan Core Equity Fund Direct-Growth mutual fund units will be allotted to your Demat account within T+2 days.
Note: You can only make the payment using the bank account registered with your Demat account.
Setting Up an SIP for Mutual Funds
If you prefer a Systematic Investment Plan (SIP) for Investing in Bandhan Core Equity Fund Direct Growth Plan, you can follow these steps:
- First, you need to log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
- Find the mutual fund for which you want to set up an SIP. In this case, you must look for Bandhan Core Equity Fund Direct Growth Plan.
- If this is your first SIP with Shoonya, you need to create a Mandate ID. Enter the mandate amount and the validity date (until you want to keep your SIP active).
- You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.
Once your Mandate is approved, you can follow these steps to set up your SIP:
- Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
- Choose the date when you want your Investing in Bandhan Core Equity Fund Direct-Growth SIP to be debited directly from your registered bank.
- The approved Mandate ID will auto-reflect.
- Choose “Monthly” for monthly debits and specify the number of instalments (e.g., 24 instalments for a 2-year SIP).
Benefits of Investing in Bandhan Core Equity Fund – Direct Plan
The Bandhan Core Equity Fund Direct Plan is an excellent choice if you are one of those investors who is looking for a balanced approach to equity investments. With its combination of large-cap and mid-cap stocks, it offers a great potential for long-term growth while managing volatility. If you’re looking for a diversified and stable fund, this could be a great addition to your portfolio.
- Diversified Portfolio: Invests in both large-cap and mid-cap stocks, balancing stability and growth.
- High Growth Potential: Exposure to mid-cap stocks provides growth opportunities.
- No Lock-in Period: Flexible withdrawal options with no lock-in period.
- Affordable Investment: Minimum investment as low as ₹1,000, with SIPs starting at ₹100.
FAQs | Bandhan Core Equity Fund
It’s an equity mutual fund that invests in large-cap and mid-cap companies for long-term growth.
If you invest in Bandhan core equity fund, you can benefit from long-term gains tax exemption of up to ₹1 lakh and short-term gains are taxed at 15%.
The Bandhan Core Equity Fund – Direct Plan focuses on investing in large-cap and mid-cap stocks. It’s required to invest at least 35% of its assets in each of these categories. This helps ensure a balanced approach between established, large companies and growth-oriented mid-sized ones.
As of 22nd November 2024, the Net Asset Value (NAV) of the Bandhan Core Equity Fund – Direct Plan stands at ₹144.7320.
The Bandhan Core Equity Fund – Direct Plan carries a Very High-risk level according to its Riskometer. This means the fund can be volatile and is more suited to investors with a higher risk tolerance.
Core Equity Funds are mutual funds that primarily invest in the shares of large and mid-sized companies. These funds are designed to invest at least 35% of their assets in both large-cap and mid-cap companies, aiming for steady growth.
Yes, they are considered high-risk because they invest in the stock market. The value of these funds can go up and down based on market conditions, so they can be affected by volatility.
Core Equity Funds are great for long-term investors because they invest in established large companies and growing mid-caps. They have the potential to build wealth over time, though it may take some patience to see significant returns.
The expense ratio of the Bandhan Core Equity Fund – Direct Plan is 0.61%, as of Nov 22nd, 2024.
Source: ValueResearch
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.