Bandhan Multi Asset Allocation Fund - Direct Plan
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
What is Bandhan Multi Asset Allocation Fund?
Bandhan Multi Asset Allocation Fund is a hybrid mutual fund scheme that attempts to diversify an investor’s portfolio by investing in different asset classes. This multi asset allocation mutual fund is mandated to invest at least 10% of its corpus in at least three asset classes. These asset classes may include domestic equities, international equities, debt securities, gold, silver and arbitrage.
The fund is mandated to invest between 65%-80% of its corpus in equities. To balance risk and increase diversification, Bandhan Multi Asset Allocation Fund is mandated to invest between 10%-30% of its assets in debt and money market instruments and gold and silver ETFs each. Bandhan Multi Asset Allocation fund may also invest upto 15% of its net assets in foreign securities. The fund is allowed to allocate the assets as per market conditions. The diversified asset allocation of this scheme may potentially help spread out risk and may allow investors to potentially benefit from the performance of a variety of different asset classes. However, all mutual funds are subject to some risks. As Bandhan Multi Asset Allocation Fund invests in equities, it may be vulnerable to market volatility and fluctuations. Larger macroeconomic factors may influence market prices and consequently affect the multi asset fund returns. Investments in debt securities are vulnerable to credit risk, interest rate risk, inflation risk, re-investment risk etc. As a result, multi asset allocation mutual funds are generally considered to be a high-risk investment.
- 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
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- 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. Sreejith Balasubramanian (w.e.f 31/01/2024), Ms. Ritika Behera (w.e.f 31/01/2024)
View fund performance of other funds managed by Mr. Viraj Kulkarni, Mr. Daylynn Pinto, Mr. Nemish Sheth, Mr. Gautam Kaul, Mr. Sreejith Balasubramanian, Ms. Ritika Behera
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/3spfzbo
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?
Bandhan Multi Asset Allocation Fund diversifies its portfolio across at least three asset classes. This fund may be suitable for investors seeking diversification of their portfolio across asset classes including equity, debt, money market, gold and silver.
Although diversification may potentially help spread out risk, this multi-allocation fund invests a significant portion of its corpus in equities, making it a high-risk mutual fund. This fund may thus be 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 investment horizon. Investors seeking long-term investments with potential for capital growth and income may be suitable for this fund.
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.