Bandhan Mutual Fund has launched the Bandhan Multi Asset Allocation Fund, an open-ended scheme that allows investors to invest across diverse asset classes such as Indian Equities, International Equities, Arbitrage, Fixed Income, Gold, and Silver. The fund adopts a multi-asset allocation strategy to optimize reward and risk by diversifying investments across various asset classes, each offering unique advantages in terms of growth, stability, and inflation protection. The New Fund Offer (NFO) is set to open on 10 January 2024 and close on 24 January 2024.
Vishal Kapoor, CEO of Bandhan AMC, highlighted the importance of a multi-asset allocation approach, stating that it helps investors avoid behavioral pitfalls such as market timing and performance chasing, which can result in shorter holding periods, portfolio imbalances, and sub-optimal returns. The Bandhan Multi Asset Allocation Fund aims for potential long-term growth with relatively lower volatility, making it attractive for investors seeking a well-rounded portfolio with relatively stable returns.
The fund’s target allocation is 50% Indian Equities, 15% International Equities, 15% fully hedged Arbitrage strategies, 10% actively managed Fixed Income, and 10% domestic Gold and Silver. The portfolio will be systematically rebalanced half yearly to achieve the targeted allocation.
