Bandhan Small Cap Fund: A Secret to Goodbye Low-Returns

Introduction

As time passes, it will become more harder to save extra money because of higher rates. Instead of saving money, it is important to invest in a fund that offers higher returns but where? Your answer is Bandhan Small Cap Fund that consistently growing money of investors like you.

It is a one of the popular name of the mutual funds industry that is known for investing in small cap companies. It aims to provide higher returns by investing in small cap stocks. This is how investors will get the best value of their money and fund achieve different milestones.

If you are thinking about how fund will provide you higher returns, then do not worry. After reading this article, you get a clear picture of the bandhan small stocks fund.

What is Bandhan Small Cap Fund?

The bandhan small cap fund is a type of mutual fund that is offered by bandhan asset management company. As clear from its name, the fund invests in small cap companies which market size is below 5,000 crores. The main focus of the fund is to capture the small cap companies market to provide higher returns. As of February 2025, the bandhan small cap fund NAV is ₹42.75.

Now one question comes to mind, why does the fund invest in small companies? So there are two main reasons behind it. First is small cap companies are in its growth face and trying to become mid and large-cap companies. The benefit of this is when companies expand its growth, it will create higher chances to grow your investment. Second is a large number of small-sized companies. Compared to mid & large-cap, there are many small-cap companies in the market. This large number of companies helps the fund to diversify the portfolio into different sectors to reduce the risk.

This is how fund manage growth and risk for investors. Now let's explore the investment strategy of the fund.

Investment Strategy of Bandhan Mutual Fund

The Fund follows a simple strategy of investing where it invests a large percentage in small cap stocks. This investment strategy helped the fund to leverage high growth potential of small cap companies.

There is a large number of small cap companies stand in the market so fund use this benefit to diversify the portfolio. It spreads the investment into different sectors. This helps to reduce the risk because your investment is not only a part of one sector.

To keep the trust of investors like you, the fund focus on choosing the quality stocks. An expert team of fund managers do this process. They do deep market research and analyse stock performance to choose the right stock for higher growth.

An integral part of the fund investment strategy is SIP (Systematic Investment Plan). It helps you to invest a fixed amount at regular intervals. This amazing approach of investing that makes the investment profitable and easier for investors helped the fund to stand out in the mutual fund market throughout the years.

 Bandhan Small Cap Fund Performance

The bandhan small cap fund is known for its high growth performance and long-term stability. If you see its past short-term performance, you will not see any major growth but this is the growth strategy. When you look at its long-term performance, you will see the fund performed very well.

In the past 3 years, the fund offered 24.33% of annualised returns to its investors. It also provided great returns on systematic investments plans of 33.7% in the same time frame. This performance was shown by the fund while managing volatility and sudden market changes. We all know that market fluctuations can affect the fund performance in short-term. This is why fund try to hold the money for a long period to manage risks like volatility and fluctuations.

Who Manage Bandhan Small Cap Fund?

The person who manage bandhan small cap fund regular growth is Manish Gunwani. He took the fund responsibility in January 2023 and continuously managing the fund. He brings the expertise of portfolio management and market research.

He oversees the equity fund management and currently managing an AUM (Asset Under Management) with a size of approx. ₹2,272 crore. He has a significant role in growing the bandhan small cap fund NAV. He uses data-driven strategies that help him to choose profitable stocks.

Instead of short-term gains, he focuses on investing in long-term to generate high returns. His investment strategies and strong mindset made him a respected person in the mutual funds market.

 Why you Should Invest in Bandhan Small Cap Mutual Fund?

Investing in bandhan small cap fund regular growth is a great way to boost your investment, but here are some reasons that shows why specifically you should invest in this small cap fund:

High-Growth Potential

The fund invests in small cap companies that are consistently expanding to become mid or even large cap companies. By investing early in small companies, you increase the chances of generating higher returns on your investment.

 Portfolio Diversification

The fund spreads the investment into different sectors of small-cap companies. It helps to reduce the risk and sustain the overall performance because your investment is not only a part of one sector.

 Easy Investment Option

The fund provides a SIP investment option so you can invest in the fund with a regular fixed amount. Investors who do not want to invest a large amount at once should invest in the fund to make the investment journey easy.

 Stress-Free Fund Management

The fund offers expert fund management where a team of expert fund managers manages your portfolio and adjusts it to greater returns. If you want to continue your investment journey without taking any stress then this small cap fund is a great choice for you.

  Conclusion

In short, the bandhan small cap fund is a great opportunity to give your money a higher growth. However, volatility can affect the performance but the fund investment strategy and diversification helps to minimise the risk as much as possible. You cannot predict the future, this is why it is important to invest in a fund that will give the best return of your money.

You can also leverage SIP investment if your pocket does not allow to invest a large amount. You can start with this investment plan by investing a fixed amount at regular intervals. This is how your financial life will not get disturbed and you keep growing your money over time.