Bandhan Bank Mutual Fund is one of the emerging players in the Indian mutual fund industry. As the name suggests, it is sponsored by Bandhan Bank, one of the leading banks in India. In this article, we will discuss some key reasons why investing in Bandhan bank mutual fund can be a good choice.
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13 May 2025
A Growing AMC
Bandhan Bank Mutual Fund was previously known as IDFC Mutual Fund before it was acquired by Bandhan Bank in 2019. Since then, it has grown significantly in terms of assets under management. From around Rs. 30,000 crores in 2019, the AUM of Bandhan Mutual Fund has crossed Rs. 50,000 crores as of 2022. This shows the growing acceptance of its funds among investors. As the bank aims to expand its financial services, the mutual fund business is also expected to grow rapidly in the coming years. Investing in a growing AMC can be beneficial for long term returns.
Diverse Fund Choices
Bandhan Mutual Fund offers a wide range of fund categories to cater to different investor needs. Some of the popular funds include equity funds like Bandhan Tax Advantage ELSS Fund, Bandhan Core Equity Fund, Bandhan Flexi Cap Fund etc. It also has debt funds, hybrid funds and solutions-oriented funds. This diverse portfolio allows investors to choose funds based on their risk appetite, investment horizon and financial goals. For example, conservative investors can consider low risk debt funds while aggressive investors may prefer equity oriented ELSS or flexi cap funds.
Experienced Fund Management
The fund managers handling Bandhan Mutual Fund schemes have rich experience of over 15-20 years on an average in the financial markets. This helps them take informed investment decisions. For instance, the fund manager of their large cap equity fund has over two decades of experience in researching stocks and managing equity portfolios. Experienced fund management can positively impact the long term returns of schemes.
Reasonable Expense Ratios
Bandhan Mutual Fund ensures its schemes have expense ratios that are comparable or lower than other peers in the industry. For example, the expense ratio of its large cap equity fund is 1.25% which is lower than many popular large cap funds. Similarly, its debt and hybrid funds have expense ratios below 1%. This allows more of the investor’s capital to be invested and grow over the long term without getting eroded by high costs.
Systematic Investment Options
Investors can start investing in Bandhan Mutual Fund schemes through convenient systematic investment plans or SIPs. This allows rupee cost averaging and investing fixed sums regularly over the long term. SIPs have proven benefits like disciplined investing and participation in market ups and downs. Through SIPs starting with as low as Rs. 500 per month, investors can build wealth by investing in Bandhan Bank Mutual Fund.
Tax Efficient Options
Bandhan Mutual Fund offers tax saving funds like the ELSS scheme which allows tax deductions up to Rs. 1.5 lakhs under section 80C. Its dividend plans also provide tax efficient returns. This makes mutual funds from Bandhan Bank an attractive investment vehicle for both wealth creation and tax planning purposes.
Conclusion
Bandhan Bank index funds is a good investment option for its growing size, diverse fund choices, experienced management, reasonable costs, tax efficient structures, robust past performance and strong banking parentage. By understanding their financial goals and risk profile, investors can choose suitable Bandhan Bank Mutual Fund schemes to build long term wealth in a systematic manner.
