Studies have established that asset allocation, rather than security selection or market timing, is the dominant factor impacting return variability, the fund house said. The new fund will adopt 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 Wednesday, 10 January, and will close on 24 January.
Investments in the Bandhan Multi Asset Allocation Fund can be made through licensed mutual fund distributors, investment advisors, online platforms, or directly at the website of bandhan mutual fund.
Vishal Kapoor, CEO of Bandhan AMC, said, “Seasoned investors recognise that no single asset class has been a winner for consecutive periods, and hence, diversifying across asset classes brings greater stability and consistency of returns. Bandhan Multi Asset Allocation Fund is crafted to offer investors a sophisticated, transparent, and effective way to achieve a well-diversified portfolio investing in 5 major asset classes and across 13 sub-asset classes. By expertly integrating major asset classes into a single well-curated fund, the fund aims for potential long-term growth, with relatively lower volatility. Investors seeking a long-term well-rounded portfolio for relatively stable returns may find this very attractive.”
Target allocation for the fund includes about 50% to Indian equities across large cap, mid cap and small cap stocks, 15% to international equities across the U.S., other developed markets as well as emerging markets, 15% to fully hedged arbitrage strategies, 10% towards actively managed high-quality fixed income and 10% towards domestic gold and silver. The portfolio would be systematically rebalanced half yearly to the targeted allocation.
