The fund, which follows a multi-cap strategy, focuses on innovation-driven companies across sectors. It invests in three buckets—Leading Innovators, Rising Innovators, and Emerging Innovators—with allocations ranging from 10% to 45%.
This diversified structure, combined with a quality-growth investment tilt, aims to balance return potential with risk control.
Fund manager Manish Gunwani, Head of Equities at Bandhan AMC, said the scheme targets companies with strong financials and high growth potential. He added that the investment style lies between value and growth, providing a balance of risk and reward.
The outperformance is attributed to sectoral positioning and stock selection, particularly in Healthcare and Financial Services. Currently, the fund is overweight on Healthcare, Consumer Durables, and Consumer Services, while it remains underweight in FMCG, Financial Services, and Oil & Gas.
Under the Direct Plan, the fund returned 22.89% in one year, against the Nifty 500 TRI’s 9.05%. Since inception (April 30, 2024), the fund has delivered 20.26% (Regular Plan) and 22.18% (Direct Plan) in CAGR terms.
Despite the strong start, investors should note that thematic funds like this come with higher volatility. Returns may vary based on sector performance and market conditions. Experts generally recommend such funds as part of a satellite portfolio, complementing core diversified investments.
Also, it is said that past performance may not sustain in the future. So, investors should consult with financial advisors before making any investment decision.