Investment Strategy of Bandhan Small Cap Fund
- The fund’s core strategy is to build a well-diversified portfolio on the basis of GARP (Growth At Reasonable Price) stock selection approach, focusing on growth (medium term reasonable visibility of growth), quality (steady operating cash flows, reasonable return on capital, management capability) and reasonable valuation (providing margin of safety).
- The fund seeks to invest in market share gainers with significant potential for growth
- The fund focuses on companies with healthy ROIC, strong profitability and sustainable cash flows
- The fund avoids investing in overleveraged businesses and companies engaged in excessive risk taking
- The fund invests in businesses with reasonable valuations with re-rating potentials
- Stock selection is based on GARP strategy
- The fund focuses more on the absolute return rather than on the benchmark orientation.
- The fund maintains broad sectoral exposure to reduce the impact of risks such as political and economical, etc.
- The fund’s top ten stocks constitute less than 30% of the portfolio, thereby helping manage both liquidity and fundamental risks.
Who Should Invest in Bandhan Small Cap Fund?
As an investment, Bandhan Small Cap Fund is suitable for those investors who:
- have long-term investment horizon and higher risk tolerance
- seek to invest in equity and equity related instrument of small cap companies