Bandhan Multi-Factor Fund NFO: A High-Risk, High-Reward Investment Strategy

Bandhan Mutual Fund has launched its newest offering — the Bandhan Multi-Factor Fund. Now open for subscription from 10th July to 24th July 2025, this fund adopts a very high-risk profile, targeting medium to long-term capital appreciation. By using a multi-factor quantitative model, it invests predominantly in equities and equity-related instruments, aiming for strong growth potential.

Key NFO Details 

• Fund Name: Bandhan Multi-Factor Fund (Direct – Growth) 

• NFO Period: 10th July 2025 to 24th July 2025 

• Allotment Date: 30th July 2025 

• Category: Equity, Strategy  

• Risk Level: Very High 

• Fund Type: Open-ended 

• Benchmark: BSE 200 TRI 

• Minimum Investment: ₹1,000 (lumpsum), ₹500 (SIP) 

• Exit Load: 0.5% if redeemed within 30 days 

• Short-term capital gains (STCG): Returns taxed at 20% if you redeem before 1 year 

• Long-term capital gains (LTCG): After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5%

Investment Objective 

The Bandhan Multi-Factor Fund focuses on generating medium to long-term capital appreciation by investing in a diverse portfolio of equity and equity-related instruments selected using a multi-factor quantitative model. This approach aims to capture the growth potential of equities while seeking to mitigate risks associated with single-factor strategies. The fund intends to offer investors an opportunity to invest in a strategy designed to deliver strong returns through a highly selective, systematic process.

How Does This Compare with the Category? 

Here’s how the category has performed in recent years: 

If Bandhan’s Multi-Factor Fund aligns with or outperforms these benchmarks, it could become a competitive player in the equity mutual fund space, offering high potential returns, albeit with very high risk.

Should You Invest in This NFO?

Investing in an NFO like Bandhan’s Multi-Factor Fund may make sense if: 

• You are seeking high-risk, high-return exposure to equities. 

• You believe in Bandhan Mutual Fund’s expertise in utilising quantitative models for equity selection. 

• You’re looking for a fund with potential for medium to long-term growth but are aware of the volatility and risk involved.

However, please note: 

• NFOs come with no historical performance data, which means it may be better suited for informed and risk-tolerant investors.

About Bandhan Mutual Fund

Bandhan Mutual Fund has an AUM of ₹1,77,378 Crore (as of June 30, 2025) and offers a wide range of funds, including equity, hybrid, and sector-specific strategies. Some of their top-performing funds include:

• Bandhan Small Cap Fund: The 5Y CAGR of Bandhan Small Cap Fund is 37.8% 

• Bandhan Infrastructure Fund: The 5Y CAGR of Bandhan Infrastructure Fund is 36.24%  

• Bandhan Value Fund: The 5Y CAGR of Bandhan Value Fund is 31.58%  

• Bandhan Large & Mid Cap Fund: The 5Y CAGR of Bandhan Large & Mid Cap Fund is 28.63%  

• Bandhan ELSS Tax Saver Fund: The 5Y CAGR of Bandhan ELSS Tax Saver Fund is 26.27%

Their consistent outperformance across various fund categories adds credibility to the new Bandhan Multi-Factor Fund offering.

Final Thoughts

If you’re looking to explore high-risk, high-reward opportunities in the equity markets, the Bandhan Multi-Factor Fund NFO may be worth considering — especially if you’re comfortable with a very high-risk strategy. As always, before investing, ensure that you thoroughly review the scheme document and consider your financial goals, risk tolerance, and time horizon.