Bandhan Infrastructure Fund Regular Plan Growth Invest Now

Bandhan infrastructure fund comes in handy at this stage.

A thematic fund is a fund that provides targeted exposure and is accompanied by a concentration risk. Therefore, it would be prudent to get to know the strategy, costs, risks and investment approach and suitability of the Bandhan infrastructure fund regular plan growth before going ahead with the investment.

What Is Bandhan Infrastructure Fund?

The Bandhan infrastructure fund is an equity mutual fund scheme which is managed by Bandhan Mutual Fund.

Fund Category and Structure

The scheme is classified as equity funds whose investment strategy is based on the Sectoral/Thematic approach. It states that 80% to 100% of its investments should be in equity and equity related securities of companies engaged in infrastructure and infrastructure related activities and debt and money-market instruments can be 0% to 20% of the portfolio.

Investment Objective

The investment goal is to create long-term capital growth through an active and diversified portfolio with a high concentration of equity and equity related securities of companies involved in and benefitting from India’s infrastructure and infrastructure related activities.

Understanding Bandhan Infrastructure Fund Regular Plan Growth

The Bandhan infrastructure fund regular plan growth is the amalgamation of two important concepts: Regular Plan and Growth option.

It’s essential to know both so you can be certain of what you’re investing in.

What Is the Regular Plan?

Typically, a Regular Plan is a distribution that goes through an intermediary. The costs can thus be different than the Direct Plan.

What Is the Growth Option?

The Growth option doesn’t pay out income to investors periodically as IDCW is done. Rather, the value is only reflected in its NAV and dependent on the performance of the fund.

Who May Consider This Plan?

The Bandhan infrastructure fund regular plan growth may interest investors who:

• Have a long term investment time frame.
• Learn about the variability in the stock market.
• Desire in-depth exposure to businesses that are related to infrastructure.
• Are able to cope with Very High risk.
• Choose the Growth option when investing for money.
• Want to invest through a distributor or intermediary.

Key Features of Bandhan Infrastructure Fund

Risks Associated With Bandhan Infrastructure Fund

With every investment opportunity there is a price. For every investment opportunity, there is a flip side.

Sector Concentration Risk

This is perhaps the premier one to grasp.

The fund focuses on companies in the infrastructure sector, so if the companies in the infrastructure theme perform poorly, it can have a greater impact on the portfolio than if the broadly diversified equity fund theme performed poorly.

Equity Market Risk

This fund’s primary investments are in stocks.

There are a variety of reasons that can cause the stock price to move up and down rapidly, such as the expectations for earnings, interest rates, world events, investor sentiment, and economic news.

Economic and Interest Rate Risk

Infrastructure companies are frequently reliant on capital expenditure, financing and big projects.

Their business opportunities can be affected by fluctuations in interest rates or the cost of borrowing and growing the economy.

Government Policy and Regulatory Risk

There is a strong relationship between infrastructure and government spending, regulation, approval, taxation and policy decisions.

A shift in these areas can impact on particular companies in a particular area or even an area as a whole.

It means the Bandhan infrastructure fund is more appropriate for investors who are comfortable with the idea of thematic investing as it can come with some significant ups and downs.

Who Should Consider Bandhan Infrastructure Fund?

If you’re a member of the Bandhan infrastructure fund regular plan growth, you may want to consider of your plan.

• Are willing to have a long investment horizon.
• Are able to withstand a lot of fluctuations.
• Looking for an opportunity to see infrastructure in a different light.
• Have a well-balanced underlying set of investments.
• Recognize that sectoral funds may underperform for long time periods.
• Click on Growth option.
• Are at ease with Very High risk classification.

Investors With a Long-Term Horizon

Oppositions related to infrastructure may take some years to be developed.

So, investors who can hold on to their investments when the markets pull back will be healthier than those who are searching for short-term gains.

Investors Comfortable With Very High Risk

The official statement of the scheme summary defines the level of risk of the fund as Very High.

This type of fund may not be suitable for you if a 15% or 20% market correction made you jump out of your skin and you would start taking out your investment.

Investors Seeking Thematic Exposure

The fund will be a good option if infrastructure is part of your portfolio strategy, but you don’t need to perform detailed research and select all the stocks that are made of infrastructure.

Things to Check Before Investing

Ask the four simple questions before investing in Bandhan infrastructure fund.

Investment Goal

What do you want to use an investment for?

Retirement? Long-term wealth creation? One of the future financial objectives?

Select a fund based on your goal, not the fund.

Risk Appetite

Will you be able to ride out the downturn in the fund?

Be honest with yourself!

Time Horizon

The further down the road you’re looking, the greater opportunity you will have to ride out market cycles. But market risk will never go away due to a longer time horizon.

Existing Portfolio Exposure

Determine if you have several infrastructure, capital goods, power or related funds in your portfolio.

Including more of a given theme may lead to an inadvertent concentration in that theme.

Is Bandhan Infrastructure Fund Suitable for Long-Term Growth?

The Bandhan infrastructure fund is designed to provide an equity mutual fund vehicle to participate in India’s infrastructure theme.

It’s a fund that requires patience and risk tolerance due to its investment mandate, high equity allocation and Very High risk profile. Since 2011 the Scheme has been in operation, and compares its performance with the BSE India Infrastructure TRI.

The Bandhan infrastructure fund regular plan growth option may be suitable for those investors who wish to invest for long term and are interested in Growth option in regular plan.

It’s a recurring and focused theme in the infrastructure, however. Don’t consider this as a place to park your money in lieu of a diversified core equity portfolio.

The tool might merit consideration if it meets your financial goal, risk appetite, time horizon and existing portfolio. Otherwise, if it doesn’t, it can be a bad investment experience if the theme or architectural story seems to be a good one.

Conclusion

The Bandhan infrastructure fund regular plan growth is designed to offer the investor specific exposure to the companies engaged in and benefitting from the Infrastructure and infrastructure related activity in India. The scheme has an allocation range of 80-100% to infrastructure related equities, is a stated theme of the economy and directly targets it.

FAQs

1. What is Bandhan Infrastructure Fund?

Ans) Bandhan infrastructure fund is an open-ended equity scheme, which has been themed around Infrastructure and Infrastructure related companies, with primary emphasis on infrastructure.

2. What is the minimum SIP amount for Bandhan Infrastructure Fund Regular Plan Growth?

Ans) The amount of minimum investment in SIP is ₹100, but investors should check the latest SIP terms before investing.

3. Is Bandhan Infrastructure Fund suitable for conservative investors?

Ans) The Very High risk classification of the fund should be taken into consideration before investing, as conservative investors may not consider it a suitable option.

4. What is the exit load for Bandhan Infrastructure Fund Regular Plan Growth?

Ans) The reported exit load is currently 0.5% in case of withdrawal within 30 days.

5. What is the difference between Bandhan Infrastructure Fund Regular Growth and Direct Growth?

Ans) Both are within the same scheme, but the Direct Growth tends to be less expensive as it doesn’t cover some of the distribution related costs.