Bandhan MF has launched its Nifty Next 50 Fund at what seems like an opportune time, when the index has corrected sharper than Nifty 50 as well as Nifty Midcap 150 on the back of steep corrections amidst the recent market sell-off in some of India’s most promising disruptors.
Gaurab says Next 50 represents the more nimble and fast growing large caps across a much wider range of sectors with much better dispersion of weights at stock and sector levels, with a proven track record of outperforming Nifty50 over longer periods of time.
Commenting on all the noise around SIPs in narrow segments like small caps etc, Gaurab says we are all missing the bigger picture here that Indians have to now make financial plans to last until they are 80-90 years of age. You are not talking about 10 year SIPs – you ought to be thinking and planning for multi-decade SIPs.
If you imbibe the thought that you need to invest for 30years in a manner that the corpus will serve you for the next 40-50 years, you wouldn’t be looking at market drawdowns over a year or two – especially when you know that markets bounce back and go higher so long as the country’s economy continues to grow.
Global markets are reacting to new dynamics of potential trade wars and currency volatility on top of geo-political issues. These are unusual times – cannot deny that – and there are no immediate solutions at hand. All the more reason for distributors to reinforce to clients the importance of asset allocation and periodic rebalancing.
We have completely ignored the value of debt in investor portfolios – times like these help us appreciate its true value in smoothening out the investment experience for investors.
Bandhan AMC plans to put in more efforts to build scale in its active funds even as it continues to build out its passives range. Expect alternates too to be a key focus area for the fund house in 2025.
The growing range of smart beta factor based funds offers distributors and advisors a great opportunity to meaningfully diversify client portfolios beyond cap sizes and themes as factor based funds can complement active funds very well.