Bandhan Small Cap Fund is an equity mutual fund that focuses on investing in small-cap companies, aiming to provide long-term capital appreciation. Launched on February 25, 2020, the fund has grown significantly over the years. As of December 31, 2024, it manages assets worth ₹9,236.21 crore. The fund is classified under the ‘High’ risk category due to the inherent volatility associated with small-cap investments.
Performance Metrics
Over the past few years, Bandhan Small Cap Fund has demonstrated commendable performance:
- 1-Year Performance: The fund has delivered a return of 12.87%.
- 3-Year Performance: Investors have benefited from a 24.44% return over this period.
- Since Inception: Since its launch, the fund has achieved a return of 31.92%.
These figures indicate the fund’s ability to capitalize on growth opportunities within the small-cap segment.
Expense Ratio & Exit Load
The fund’s expense ratio stands at 1.72%, which is within the typical range for small-cap funds. Investors should also be aware of the exit load structure: if units are redeemed within one year from the date of allotment, an exit load of 1% is applicable. No exit load is charged for redemptions after one year.
Top Holdings & Sector Allocation
Bandhan Small Cap Fund’s investment strategy involves diversifying across various sectors to mitigate risks:
- Top Holdings:
- PCBL Chemical Ltd. (Chemicals) – 3.16%
- Cholamandalam Financial Holdings Ltd. (Financial Services)
- Sobha Ltd. (Realty)
- LT Foods Ltd. (Consumer Staples)
- Karnataka Bank Ltd. (Financial Services)
- Sector Allocation:
- Financial Services: 19.63%
- Healthcare: 12.67%
- Capital Goods: 10.99%
- Realty: 7.40%
- Chemicals: 6.87%
Fund Manager Details
The fund is managed by Manish Gunwani, who brings extensive experience in equity research and fund management. His expertise plays a pivotal role in the fund’s strategic decisions and performance.
Investment Strategy
Bandhan Small Cap Fund adopts a growth-oriented investment approach, focusing on identifying small-cap companies with strong growth potential. The fund seeks to invest in businesses with robust fundamentals, competent management, and sustainable competitive advantages. This aggressive strategy aims to capitalize on the higher growth prospects typically associated with small-cap companies.
NAV (Net Asset Value) & Investment Options
- Latest NAV: As of February 21, 2025, the NAV for the Regular Plan is ₹39.90.
- Minimum Investment:
- SIP (Systematic Investment Plan): ₹100
- Lumpsum: ₹1,000
Why Choose Bandhan Small Cap Fund?
Investors might consider Bandhan Small Cap Fund for several reasons:
- Strong Performance: The fund has consistently outperformed its benchmark and peers over various time horizons.
- Experienced Management: With Manish Gunwani at the helm, the fund benefits from seasoned leadership.
- Diversified Portfolio: A well-spread allocation across sectors and companies helps in risk mitigation.
Why Not to Choose Bandhan Small Cap Fund?
However, potential investors should be cautious of certain aspects:
- High Risk: Investments in small-cap funds are inherently volatile and may not suit conservative investors.
- Market Sensitivity: The fund’s performance is closely tied to market conditions, which can lead to significant short-term fluctuations.
Performance of Companies in the Fund
The top holdings have shown varied performance:
- PCBL Chemical Ltd.: Achieved a 1-year return of 28.89%, indicating strong growth.
- Cholamandalam Financial Holdings Ltd.: Continues to exhibit robust financial health, contributing positively to the fund’s returns.
In conclusion, Bandhan Small Cap Fund offers a compelling opportunity for investors seeking exposure to the small-cap segment with the potential for substantial returns. However, it’s essential to align this investment with one’s risk tolerance and investment horizon.
