Bandhan core equity fund: In the quiet of strategy, wealth finds its way

The Bandhan Core Equity Fund, launched in August 2005, has consistently ranked in the top 30th percentile of the largecap and midcap funds category in CRISIL Mutual Fund Ranking (CMFR) for three consecutive quarters, up to September 2024.

 

As of September 2024, the fund’s assets under management stood at Rs 6,982 crore, up from Rs 2,499 crore in September 2021.

 

Manish Gunwani, Rahul Agarwal, and Harsh Bhatia have been managing the fund since January 2023, August 2023, and February 2024, respectively. 

 

The primary objective of the fund is to generate long-term capital growth by predominantly investing in largecap and midcap stocks.

 

Trailing returns

 

The fund has outperformed its benchmark, the Nifty LargeMidcap 250 TRI, over the past six months, as well as in the one-, two-, three-, and five-year trailing periods. It has also surpassed its peers (funds ranked under the largecap and midcap funds category in the September 2024 CMFR) in the same periods, including the past six months, as well as the one-, two-, three-, five-, seven-, and 10-year trailing periods.

 

An investment of Rs 10,000 in the fund on its inception date, August 9, 2005, would have grown to Rs 1.25 lakh by November 14, 2024, reflecting an annualised return of 14 per cent. In comparison, the same investment in the category would have grown to Rs 1.66 lakh (15.69 per cent annualised return), and in the benchmark, Rs 1.67 lakh (15.74 per cent annualised return).

 

A systematic investment plan is a disciplined approach to investing offered by mutual funds, allowing investors to contribute a fixed amount at regular intervals.

 

A monthly investment of Rs 10,000 over the past 10 years, totalling Rs 12 lakh, would have grown to Rs 31.74 lakh (18.62 per cent annualised return) in the fund, compared with Rs 30.1 lakh (18.17 per cent annualised return) in the benchmark, as of November 14, 2024.

 

Portfolio analysis

 

Over the past three years, the fund has consistently adhered to its mandate of investing in largecap and midcap stocks, with a strong preference for largecaps.

 

On average, largecap stocks comprised 47.84 per cent of the portfolio, while midcaps and smallcaps accounted for 36.77 per cent and 11.71 per cent, respectively. The remaining 3.68 per cent was allocated to non-equity assets.

 

During this period, the fund’s portfolio was diversified across 24 sectors, with financial services dominating the allocation at an average of 28.03 per cent. This was followed by automotive (auto) and auto components (10.21 per cent), information technology (8.43 per cent), healthcare (7.48 per cent), and capital goods (6.72 per cent).

 

The fund was exposed to 245 stocks during the period under analysis, of which it held six stocks consistently. Key contributors to the portfolio’s performance included ICICI Bank, Zomato, Power Finance Corporation, State Bank of India, and Tata Motors.