Bandhan Mutual Fund has launched an innovation fund NFO. The scheme’s brochure indicates that it aims to build a portfolio for future opportunities. This fund is currently open for recruitment and the initial offering will close on April 24, 2024. Such mutual funds do not invest in specific indexes, sectors or segments, but follow innovative themes. In this article: Bandhan Innovation Fund NFO Learn more about stocks and whether you should invest or avoid them.
Bandhan Innovation Fund – NFO Issue Details
This is an open-ended mutual fund share scheme.
Fund name | Bandhan Innovation Fund |
NFO is open | April 10, 24 |
NFO closing | April 24, 2016 |
Scheme resumed for continued purchase/sale | Within 5 business days |
Minimum application amount | 1,000 rupees, thereafter in multiples of 1 rupee |
Minimum SIP | 100 rupees for 6 months |
Fund NAV | 10 rupees during NFO period. |
entry road | Nothing |
End of loading | 0.5% on exchanges within 30 days |
danger | very high risk |
standard | nifty 500 try |
fund manager | Manish Gunwani Brijesh Shah |
What is the investment objective of Bandhan Innovation Fund NFO?
The scheme aims to generate long-term capital growth by investing primarily in shares and equity-related products of companies aligned with the theme of innovation.
What is the allocation pattern of this mutual fund scheme?
The allocation pattern for this scheme is:
Type of instrument | minimum% | maximum% | risk profile |
---|---|---|---|
Stocks and stock-related products with an innovation theme company |
80% | 100% | very expensive |
Stocks, stock-related securities, and foreign securities other than those listed above* | 0% | 20% | very expensive |
Debt securities and money market instruments (including government securities, securitized debt securities) | 0% | 20% | low to moderate |
Units issued by REITs and InvITs | 0% | Ten% | very expensive |
How is the innovation theme category of mutual funds performing?
Currently, most of the Innovation Mutual Fund schemes are launched in less than a year and therefore offer 3-month, 6-month and YTD performance.
scheme name | 3M | 6M | YTD |
---|---|---|---|
ICICI Prudential Innovation Fund | 11% | 30% | 13% |
Union Innovation & Opportunity Fund | Five% | 15% | 9% |
Japan India Innovation Fund | 6% | 20% | 9% |
Why invest in Bandhan Innovation Fund NFO?
Here are some reasons to invest in this fund.
- The fund invests in companies with the characteristics of innovative companies. According to product brochures, these companies have high skilled employee costs, strong brands, high R&D costs, differentiated products/services, potentially higher profit margins, and non-linear A company that uses a business model.
- According to data presented in the product presentation, innovation is expected to grow three times over the next six years, innovation in the retail industry will grow seven times over the next 10 years, and innovation in the banking and automotive sectors will lead to significant growth. There is a possibility. Investors who want to cash in on such opportunities can invest in such funds.
- Historically, innovative companies have generated higher profits. As an example, the Nasdaq reflects innovative companies that have generated 35x earnings. The S&P 500 has returned 14 times over the past 34 years.
Why should you avoid Bandhan Innovation Fund NFO?
You should consider some of these risk factors/negative factors before investing.
- The scheme primarily invests in equity instruments of companies that are committed to, or expected to benefit from, innovation themes. Such innovations may be short-lived or may not materialize as expected.
- As the scheme is thematic in nature, it will be subject to risks associated with the innovation theme. Thematic schemes have a higher concentration risk and therefore a higher risk of capital loss.There is an element of unpredictable market cycles that can last for a long time.
- The fund invests up to 20% of its assets in foreign securities that are subject to geopolitical and currency risks.
- Investors should read all the risk factors before investing in such schemes.
Should you invest in Bandhan Innovation Fund NFO?
Bandhan Innovation Fund follows the theme of innovation. The scheme invests in companies based on leading innovators, emerging innovators and emerging innovators.
On the other hand, there is no guarantee that such innovation themes will benefit such funds. Investors cannot assess how funds in this category will perform over the medium to long term.
If you are a high-risk investor and are excited about investing in mutual fund schemes based on such innovation themes, you can invest. Otherwise, you can avoid such funds.
Bandhan Innovation Fund NFO analysis is done based on SID and product brochure
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