The rise in AUM comes as the scheme approaches its sixth anniversary this month. According to the fund house, the portfolio is structured to avoid excessive concentration risk, with the top 10 holdings accounting for less than 30% of total assets.
The fund is spread across multiple sectors to manage liquidity and volatility, which are typically higher in the small-cap segment.
Market view and investment approach
In its December 2025 quarter commentary, Bandhan Mutual Fund said domestic equities were likely to benefit from improving earnings, making stock selection critical. The fund managers noted that they were maintaining a relatively higher cash position while gradually deploying capital into small-cap stocks, given lower trading volumes in the segment.
The scheme is managed by Kirthi Jain, Ritika Behera, and Manish Gunwani. It follows an absolute-return approach rather than strictly tracking its benchmark. The portfolio turnover ratio stood at 0.21, suggesting limited churn in holdings.
The fund’s Sharpe ratio was reported at 1.32, a measure of risk-adjusted returns.
Sector allocation
As of December 2025, the fund was overweight on realty, financial services, and textiles, while being underweight on capital goods, construction, and auto-related stocks. The fund house said these positions were based on earnings visibility and valuations rather than short-term market trends.
Performance track record
Over the past three years, the scheme delivered a compounded annual return of 29.47%, while its five-year CAGR stood at 25.46%. The fund has also outperformed its benchmark over one-, three-, and five-year periods.
Minimum investment
Investors can start a Systematic Investment Plan (SIP) in the scheme with a minimum of ₹100, making it accessible to retail investors.
