Why Invest In Bandhan Small Cap Fund? Key Reasons To Know

By investing in the Bandhan Small Cap Fund, investors can get benefits like earning great returns, minimizing risks and wealth creation for the future. All these are at very affordable prices.

However, since small cap funds are volatile in nature, it is very important to assess this scheme thoroughly to understand whether the scheme is worth investing in or not.

In this article, you will learn about the key reasons why you should invest in this mutual fund. So let us start the journey with an overview of the scheme.

Overview Of The Bandhan Small Cap Fund Regular Growth

The scheme was launched in February 2020 and Bandhan Mutual Fund offers it. The following points provide some key information related to the scheme:

1. The investment objective of Bandhan Small Cap Fund Regular is to create capital for the long term investment plans.

2. It mainly invests in equity and its related stocks due to their strong growth potential.

3. The Bandhan Small Cap Fund NAV is Rs.40.04 as of the 15th of April 2025.

4. The AUM of this fund is worth Rs.9,496 crores by March 2025.

An interesting fact about this scheme is that it has been outperforming its peers since its launch. Despite of such a small fund size, how did this mutual fund scheme manage to beat key players in the market? The answer may lie in its unique investment strategy. Let's learn more about it.

What Is The Investment Strategy Of Bandhan Small Cap Fund?

The fund house is required to invest at least 65% of its assets in small cap companies. This is to remain under the category of small cap fund. As you know how volatile these funds are, still the scheme managed to grow rapidly. This is because of a unique investment strategy named GARP.

GARP stands for growth at a reasonable price. This means that the Bandhan Small Cap Fund Regular Growth invests in stocks that have future growth potential as well as are not too expensive. But this approach alone is not responsible for the fund's consistent performance. The following are some other aspects that are part of the investment strategy:

1. Portfolio Diversification

The fund house makes sure that it invests in different sectors. By diversifying the portfolio, the AMC reduces the risk of market volatility. This helps in maximizing returns in the long term while minimizing the impact of market fluctuations.

2. Focusing On Certain Sectors

Portfolio diversification will not protect the fund if the sectors are not good enough to invest in. The fund house focuses on some strong sectors like financials, healthcare, etc. These sectors are speculated to grow in the future.

Thus, the investment strategy prioritizes affordability for investors. And by investing in promising sectors, Bandhan Small Cap Fund also makes sure that it gives great returns to investors. Such a good investment strategy must be the brainchild of skilled professionals. Now, it is the right time to know about the fund managers working behind the curtain.

Who Is The Fund Manager Of Bandhan Small Cap Fund?

Mr. Manish Gunwani is the current fund manager of this scheme. He is the head of the equity fund management in the fund house. Mr. Gunwani had joined the fund house in June 2023. He has a rich experience of more than 25 years working in equity research and fund management.

Before joining the fund house, he had worked at several large institutions in the financial market. He has a very good track record. Mr. Gunwani has contributed to bringing the scheme to such great heights within just two years after joining. This proves how good he is at his work.

Although the GARP strategy and Mr. Gunwani should be enough to convince you to trust the Bandhan Small Cap Fund Regular Growth. But there are some other reasons as well that need to be highlighted.

Why Invest In Bandhan Small Cap Fund?

The fund is highly suitable for investors who value affordability. Although, the GARP strategy prioritizes this principle in finding small cap stocks. But the following benefits also make it more affordable for you to invest in the scheme:

1. Competitive Fund Management

The fund house charges competitive fees to manage your portfolio. The expense ratio which is basically the fees being charged for portfolio should be within 1-2% of your portfolio. And the AMC charges around 1.72% as fees which is within the affordable limits. This means, if your portfolio is worth Rs 1,00,000 then the fund house will charge around Rs 1700 only.

2. High Level of Flexibility

The minimum SIP in this scheme is Rs 100 only. So if you are a salaried person or even a student who can manage to save such a small amount each week. Then you can still make great returns in the long term. Such a level of investment flexibility is very hard to see in the case of other schemes in the market.

Considering these two points along with the GARP strategy, it can be said that the affordability of this mutual fund scheme is very good. Now that you are convinced to invest in the scheme, let's learn about who should invest in this scheme.

Who Should Invest In Bandhan Small Cap Fund Regular Growth?

Affordability is a key indicator of a good mutual fund scheme. But what if that scheme is not aligned with your financial goals? So, if you are interested in investing in this scheme, then you need to have these traits within you:

1. High risk appetite to navigate through market fluctuations

2. Long term investment goals for at least 7 years

3. Financial goal to create wealth for the future

If you have these traits within you that the Bandhan Small Cap Fund is the best fit for you. Now let’s conclude this discussion.

Conclusion

In short, investors who are looking for a scheme that can give great returns in the most affordable way should invest in this scheme. And since long term investment goals are necessary to gain optimum benefits out of small cap funds. Thus, to gain huge capital, you need to make sure that you make a SIP or lump sum investment for at least 7 years or more.