Latest news with #BandhanMulti-FactorFund
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Business Standard
17-07-2025
- Business
- Business Standard
Factor fund launches shift to active space with momentum, multi-factor
The factor fund launch spree by mutual funds (MFs) is moving from the passive to the active space. Two new fund offerings (NFOs) — ICICI Prudential Active Momentum Fund and Bandhan Multi-Factor Fund — are currently open for subscription. Sundaram MF's multi-factor fund NFO closed on Wednesday. In addition, Kotak MF is set to launch an active momentum fund later this month. Mirae Asset MF also has plans to launch a multi-factor fund through the fund-of-funds route. The launches in the active factor space coincide with the rising adoption of quantitative investing in the MF industry. Fund houses have been investing in setting up quantitative investing capabilities in recent years. Factor funds, which use investment models that focus on one or multiple factors — such as momentum, quality, value, size and market volatility — to construct portfolios, were until recently limited to the passive space, except for value- and size-based funds. Samco MF launched the first actively managed momentum fund in 2023. Since then, several fund houses have ventured into the active factor space with momentum, multi-factor and quality funds. These include active quality funds from WhiteOak Capital and ICICI Prudential, and active momentum funds from Union, Nippon India and Motilal Oswal. In addition, there are at least three schemes that take a multi-factor approach, including SBI MF's quant fund. The launches are happening even as the passive space has multiple factor fund offerings. Several such index funds and exchange-traded funds (ETFs), which mostly track the Nifty 200 Momentum 30, Nifty 200 Quality 30, Nifty 50 Value 20 and Nifty 100 Low Volatility 30 indices, have been operating for over three years. Experts say that while passive funds are available, there is merit in having active options. 'Market conditions and factor performance cycles are not static — they evolve with macroeconomic shifts, sentiment and valuation regimes. An active approach enables us to dynamically allocate between factors, manage risks more nimbly, and potentially capture alpha by avoiding mechanical exposure to underperforming segments,' said Chintan Haria, principal – investment strategy, ICICI Prudential Mutual Fund. 'While active factor funds also rely on factor models to shortlist stocks, they may also use other subjective elements such as corporate governance filters or futuristic expectations in decision-making. Their factor models may also be more dynamic in nature and reviewed by the fund managers periodically,' he said. For instance, while passive momentum funds only rely on price momentum, the recently launched ICICI Prudential MF's active momentum fund uses both earnings and price momentum. The use of factors and quantitative strategies is seeing adoption in regular equity schemes. Edelweiss MF manages the equity portion of four of its active funds through this strategy. NJ Mutual Fund has been managing all its equity and hybrid funds through factor-based strategies since inception. Shriram MF adopted the quantitative approach in September 2023.
Time of India
08-07-2025
- Business
- Time of India
NFO Alert: Bandhan Mutual Fund launches multi-factor fund
Bandhan Mutual Fund has announced the launch of Bandhan Multi- Factor Fund, an open-ended equity scheme investing based on an adaptive and evolving multi- factor quantitative model theme. The new fund offer (NFO) of the fund will open for subscription on July 10 and will close on July 24. Also Read | NFO Insight: Quant Mutual Fund's equity saving fund opens for subscription. Should you add this in current market scenario? Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Brain tumor has left my son feeling miserable; please help! Donate For Health Donate Now Undo The fund offers investors diversified exposure by blending four time-tested investment factors—Momentum, Value, Quality, and Low Volatility—into a single portfolio. The fund will be benchmarked against BSE 200 TRI and will be managed by Rishi Sharma and Brijesh Shah. Live Events 'As markets become increasingly dynamic, investors need strategies that can adapt and remain resilient through cycles. Multi-factor investing has emerged as a compelling equity strategy, especially in a market where no single factor consistently leads across all conditions,' said Vishal Kapoor , CEO, Bandhan AMC. 'Momentum tends to perform well in bull markets, value during recoveries, quality in slowdowns, and low volatility in uncertain phases. By combining these factors, the Bandhan Multi-Factor Fund aims to reduce reliance on any one factor and enhance overall risk-adjusted returns,' Kapoor added. The portfolio is constructed from a universe of the top 250 large and mid-cap companies. Each stock is scored on the four factors, after which the most effective factor combinations are shortlisted. A final score is then assigned to each stock, and a portfolio of approximately 50– 65 stocks is created, guided by a defined risk management framework. The fund is well-suited for investors seeking to move beyond traditional equity styles and adopt a more structured, data-driven approach to long-term equity investing. The fund is suitable for investors who are seeking to create wealth over a long term and want investment predominantly in equity and equity related instruments based on an adaptive and evolving multi-factor quantitative model. Also Read | JioBlackRock Mutual Fund seeks Sebi nod to launch 8 new funds: Report The minimum investment amount for lumpsum purchase is Rs 1,000 and in multiples of Re 1 thereafter. For SIP, the minimum investment is Rs 100 and in multiples of Re 1 thereafter with minimum six installments. The fund will allocate 80-100% in equity and equity related instruments selected based on multi-factor quantitative model theme, 0-20% in other equities and equity related securities, 0-20% in debt securities and money market instruments (including Government securities, Securitised debt), and 0-10% in units issued by REITs & InvITs.
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Business Standard
08-07-2025
- Business
- Business Standard
NFO Alert! Bandhan MF launches Multi-Factor Fund; check key details here
Bandhan Multi-Factor Fund: Bandhan Mutual Fund has launched the Bandhan Multi-Factor Fund, an open-ended equity scheme investing based on adaptive and evolving multi-factor quantitative model theme. The new fund offer (NFO) will open on Thursday, July 10, 2025 and close on Thursday, July 24, 2025. This multi-factor fund offers a diversified exposure by blending four time-tested investment factors including Momentum, Value, Quality, and Low Volatility into a single portfolio. According to the Scheme Information Document (SID), the performance of the scheme will be benchmarked against the BSE 200 Total Return Index. The portfolio is constructed from the top 250 large and mid-cap companies, using a data-driven approach based on four key factors. After scoring and shortlisting, around 50-65 stocks are selected within a defined risk management framework. Vishal Kapoor, chief executive officer at Bandhan AMC, said that as markets become increasingly dynamic, investors need strategies that can adapt and remain resilient through cycles. Multi-factor investing has emerged as a compelling equity strategy, especially in a market where no single factor consistently leads across all conditions. "Momentum tends to perform well in bull markets, value during recoveries, quality in slowdowns, and low volatility in uncertain phases. By combining these factors, the Bandhan Multi-Factor Fund aims to reduce reliance on any one factor and enhance overall risk-adjusted returns,' he added. During the NFO, investors can invest a minimum of ₹1,000 and in multiples of ₹1 thereafter. Through a Systematic Investment Plan (SIP), the minimum investment amount is ₹100 and can be increased in multiples of ₹1 thereafter, with a minimum of 6 installments required. According to the SID, if units are redeemed or switched out on or within 30 days from the date of allotment a 0.5 per cent of the Net Asset Value (NAV) will be charged as exit load. However, no exit load will be charged if units are redeemed or switched out after 30 days from the date of allotment. Rishi Sharma and Brijesh Shah are the designated fund managers for the scheme. Bandhan Multi-Factor Fund: Who should invest? According to the SID, the fund is suitable for investors seeking long-term wealth creation and investment in equity and equity related instruments based on an adaptive and evolving multi-factor quantitative model. The fund is well-suited for investors seeking to move beyond traditional equity styles and adopt a more structured, data-driven approach to long-term equity investing. However, investors should consult their financial advisors if in doubt about whether the product is suitable for them.
