Now Reading: Bandhan launches contra fund; small cap fund trails peers
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Bandhan launches contra fund; small cap fund trails peers
Bandhan Mutual Fund has announced the launch of the Bandhan Contra Fund, an open-ended equity scheme that will invest in fundamentally strong companies temporarily out of favour. The new fund offer (NFO)…
The Story in Brief
Bandhan Mutual Fund has announced the launch of the Bandhan Contra Fund, an open-ended equity scheme that will invest in fundamentally strong companies temporarily out of favour. The new fund offer (NFO) opens on August 10 and closes on August 24. CEO Vishal Kapoor said valuation spreads across sectors have created opportunities for contrarian investing.
Separately, the Bandhan Small Cap Fund has underperformed the category average over the past three months (6.71% vs 8.80%) and one year (8.05% vs 8.60%). However, its three-year annualised return of 25.35% beats the category's 16%, and its five-year return also leads. Stock selection has driven outperformance, not sector allocation.
The Indian Opinion
Short-term underperformance of the Bandhan Small Cap Fund has triggered some anxiety, but its three-year record shows stock selection works over cycles. The new contra fund's success will ultimately rest on whether its managers can identify oversold companies with real earnings recovery. The test is simple: watch if Bandhan's discipline holds when market sentiment shifts, or if it chases momentum like everyone else.
Sources (2): businesstoday.in, businesstoday.in (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
