Bandhan MF launches multi-asset fund with 50% equities allocation

Bandhan Mutual Fund on Monday launched a multi-asset allocation fund, a hybrid offering that will invest across asset classes with 50 per cent of the allocation going into Indian equities.

'(Of the rest), 15 per cent will go into international equities across the US and other developed markets as well as emerging markets, 15 per cent to fully hedged arbitrage strategies, 10 per cent towards actively managed high-quality Fixed Income and 10 per cent towards domestic gold and silver,' said the fund house, adding that the allocation would be systematically rebalanced half yearly to the targeted allocation.

'Asset allocation helps investors avoid behavioural pitfalls, such as market timing and performance chasing which can result in shorter holding periods, portfolio imbalances and eventually sub-optimal returns,' said Vishal Kapoor, CEO of Bandhan AMC.

Multi-asset allocation funds have been the 'flavour of the season' in the hybrid space in financial year 2024 as fund houses have rushed to launch the product post the change in debt fund taxation. However, fund houses have taken a diverse approach, especially on the taxation front. While some fund houses have stuck to the usual equity taxation structure, others have opted for the erstwhile debt taxation (20 per cent tax with indexation benefits after 3 years).