NFO Alert: Bandhan Mutual Fund announces launch of contra fund

Bandhan Mutual Fund today announced the launch of the Bandhan Contra Fund, an open-ended equity scheme following a contrarian investment strategy that seeks to identify fundamentally strong businesses that may be temporarily out of favour due to sector-wide concerns, cyclical challenges, macroeconomic uncertainties or prevailing market sentiment, with the potential for re-rating as perceptions and fundamentals improve over time.

The new fund offer or NFO of the fund is open for subscription and will close on August 24.

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The investment objective of the scheme is to seek to generate capital appreciation from a diversified portfolio of equity and equity related instruments by following contrarian investment strategy.

“The launch of Bandhan Contra Fund comes at a time when valuation spread across sectors has widened considerably, creating opportunities for selective contrarian investing. Several sectors and companies continue to trade below their long-term potential despite possessing sound business models, improving earnings visibility and strengthening balance sheets,” said Vishal Kapoor, CEO, Bandhan AMC.

“Such sectoral divergence can provide fertile ground for investors seeking opportunities beyond the prevailing market consensus. Bandhan Contra Fund is designed to follow a disciplined contrarian framework with a growth bias, seeking to benefit from improving fundamentals, earnings recovery and eventual market re-rating,” Kapoor further said.
Bandhan Contra Fund is designed for investors seeking a differentiated equity strategy that can complement traditional growth and value allocations. The fund may be suitable for investors with a long-term investment horizon and the ability to remain invested through market cycles, participating in opportunities arising from changing fundamentals and market inefficiencies. The fund is suitable for investors who are seeking to create wealth over a long time and want investment predominantly in equity and equity related instruments following contrarian investment strategy.

The performance of the fund will be benchmarked against BSE 500 TRI and will be managed by Prateek Poddar (equity), Manish Gunwani (Debt) and the overseas investment portion will be managed by Harshal Joshi, Ritika Behera and Gaurav Satra.

An exit load of 0.50% of the applicable NAV will be applicable if redeemed / switched out on / within 30 days from the date of allotment post that the exit load will be nil.

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The minimum investment amount for lumpsum investment is Rs 1,000 and any amount thereafter. For SIP, the minimum investment amount is Rs 100 and in multiples of Re 1 thereafter with minimum six installments.

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