Bandhan Mutual Fund files draft for micro cap fund

Bandhan Mutual Fund has filed a draft for a micro cap fund. Bandhan Microcap Fund will be an open-ended scheme investing in micro cap companies.

The scheme will be benchmarked against Nifty Microcap 250 TRI.

The scheme will be managed by Sumit Agrawal and Kirthi Jain (equity investments), Brijesh Shah (debt investments), and Nishita Shah (overseas investments).


According to the scheme information document, the investment objective of the scheme is to provide long-term capital appreciation by investing predominantly in equity and equity-related instruments of microcap companies.

The scheme will have a regular and direct plan with both growth and IDCW options.

The scheme will allocate 80-100% in equity and equity-related instruments of microcap companies, 0-20% in equities and equity related securities other than microcap companies and overseas securities, 0-20% in very high debt securities and money market instruments (including government securities and securities debt), and 0-10% in units issued by REITs & InvITs.

The minimum application amount will be Rs 1,000 and in multiples of Re 1 thereafter.

The minimum application amount for SIP will be Rs 100 and in multiple of Re 1 thereafter with six instalments. The scheme will offer SIP facilities with weekly, monthly, and quarterly frequencies.

The scheme will be suitable for investors who are seeking capital appreciation over the long term. The principal invested in this scheme will be at very high risk as per the riskometer of the scheme.