Bandhan Small Cap Fund Direct Growth

Bandhan Small Cap Fund is a small-cap mutual fund required by SEBI to invest at least 65% of its assets in small-cap companies. Companies are ranked on the stock exchange based on their market capitalization. Small-cap companies rank 250th and beyond. 

The fund follows BSE 250 Small Cap TRI as its benchmark index. This helps them measure their performance against a broader market of small-cap companies. They maintain a strong focus on industries like Financials, Healthcare, Construction, etc. 

Bandhan Small Cap Fund follows the GARP strategy to pick stocks for its small-cap fund. GARP means growth at reasonable prices. They further believe in lower concentration in a single stock. This helps reduce exposure across major stocks and diversify macro risks. As a general rule, the fund house keeps its top 10 stocks less than 30% of its portfolio.

Currently, the fund's portfolio comprises 71.5% small-cap stocks, 5.73% large-cap stocks, and 9.03% mid-cap stocks.

With an AUM of ₹11744.0 crores, Bandhan Small Cap Fund Direct Growth generated a return of 15.9% in 1 year, 38.0% in 3 years, 38.4% in 5 years. while its benchmark index (Nifty Smallcap 250) generated 0.8% in 1 year, 29.5% in 3 years, and 34.1% in 5 years.