Bandhan Mutual Fund has announced the launch of the Bandhan Contra Fund, an open-ended equity scheme that follows a contrarian investment strategy aimed at identifying fundamentally strong companies that are temporarily out of favour due to market sentiment, sectoral challenges or macroeconomic uncertainties. The New Fund Offer (NFO) will open on August 10 and close on August 24, with investments available through mutual fund distributors, online platforms and the fund house’s direct platform.
The fund seeks to capitalise on businesses that have the potential for valuation re-rating as earnings improve and investor perception changes over time. According to the asset management company, the scheme is designed to complement conventional growth and value investment strategies by focusing on overlooked opportunities across sectors.
Commenting on the launch, Bandhan AMC CEO Vishal Kapoor said widening valuation gaps across sectors have created favourable conditions for selective contrarian investing. He noted that several companies continue to trade below their long-term potential despite sound business models, improving earnings visibility and stronger balance sheets. The fund, he added, will adopt a disciplined contrarian framework with a growth bias to benefit from improving fundamentals and eventual market re-rating.
The launch is expected to resonate with investors in Kolkata, a key financial market in eastern India where participation in mutual funds has been steadily rising. Financial advisers in the city may view the contra strategy as an option for long-term investors seeking portfolio diversification amid volatile equity markets, particularly those willing to remain invested through market cycles in pursuit of value-driven opportunities.