Bandhan Mutual Fund has launched the Bandhan Multi Asset Allocation Fund, an open-ended scheme that allows investment across various asset classes. The fund adopts a multi-asset allocation strategy to optimize reward and risk by diversifying investments across different asset classes. The New Fund Offer (NFO) will open on 10 January 2024 and close on 24 January 2024.
The target allocation for the fund is 50% to Indian Equities, 15% to International Equities, 15% to fully hedged Arbitrage strategies, 10% to actively managed high-quality Fixed Income, and 10% to domestic Gold and Silver. The portfolio will be systematically rebalanced half yearly to the targeted allocation.
Bandhan AMC CEO Vishal Kapoor emphasizes the importance of a multi-asset allocation approach, especially in the face of strong past returns in select equity markets. He believes this helps avoid behavioral pitfalls like market timing and performance chasing, which can lead to short holding periods, portfolio imbalances, and sub-optimal returns. The Bandhan Multi Asset Allocation Fund offers a sophisticated, transparent, and effective way to achieve a well-diversified portfolio, investing in 5 major asset classes and 13 sub-asset classes.
