Bandhan Innovation Fund

The Bandhan Innovation Fund has delivered a 1-year XIRR of 13.31%, which is below the category average of 14.1% for the same period. Over the long term, the fund has significantly outperformed the NIFTY 50 benchmark, with a 3-year CAGR of 17.0% versus 2.43% for the benchmark, and a 5-year CAGR of 9.88% versus 1.45%. The fund's 1-year rolling return of 13.11% is close to its XIRR, indicating consistent performance over the past year.

The fund has a maximum drawdown of -19.69% with a recovery period of 144 days, indicating moderate downside risk. It has experienced 2 drawdown events exceeding 10%, which is typical for a sectoral/thematic fund. The Calmar ratio of 0.6659 for 1 year suggests a reasonable risk-adjusted return, though the fund's beta of 1.03 indicates slightly higher volatility than the benchmark.

The fund is a sectoral/thematic fund focused on innovation themes, which likely leads to high sector concentration in technology and related growth sectors. While specific top holdings are not provided, thematic funds typically have concentrated bets, which can amplify both gains and losses. Investors should be aware of the lack of diversification across sectors, which increases idiosyncratic risk.

The fund's 1-year XIRR of 13.31% is below the category average of 14.1%, indicating underperformance relative to peers in the short term. However, the fund has shown strong long-term outperformance against the benchmark, with alpha of 14.62% over 3 years and 8.49% over 5 years. The fund's upside capture of 110.4% and downside capture of 86.69% suggest it participates more in up markets while protecting better in down markets compared to the benchmark.

This fund is suitable for investors with a high risk tolerance and a long-term investment horizon of at least 5-7 years, given its sectoral concentration and volatility. It is best suited for those who believe in the long-term growth potential of innovation-driven companies and can withstand significant drawdowns. Investors should consider this as a satellite holding rather than a core portfolio component, given its thematic nature.

• Consistent long-term outperformance over the NIFTY 50 benchmark, with alpha of 14.62% over 3 years and 8.49% over 5 years.
• Strong upside capture (110.4%) and lower downside capture (86.69%) compared to the benchmark, indicating favorable risk-adjusted performance.
• Low expense ratio of 0.57% for a direct plan, which is cost-efficient for investors.

• 1-year XIRR of 13.31% is below the category average of 14.1%, indicating short-term underperformance relative to peers.
• High sector concentration in thematic innovation stocks can lead to significant drawdowns, as evidenced by a maximum drawdown of -19.69% and 2 drawdown events exceeding 10%.