Changes in Bandhan Hybrid Equity Fund’s Fundamental Attributes

Bandhan Mutual Fund has announced changes to the fundamental attributes of Bandhan Hybrid Equity Fund. These changes will come into effect from March 19, 2025.

• Fund name change: “Bandhan Hybrid Equity Fund” → “Bandhan Aggressive Hybrid Fund”
• New strategy: Introduction of exchange-traded derivatives for hedging
• Exit option: No exit load for investors who redeem/switch between February 17, 2025, and March 18, 2025
• Effective date: March 19, 2025

Name Change

The fund’s name is being changed from “Bandhan Hybrid Equity Fund” to “Bandhan Aggressive Hybrid Fund”. The new name shows the category under which it falls, but there is no mention of changes in the asset allocation strategy beyond what is already permitted for aggressive hybrid funds.

Use of Exchange-Traded Derivatives

The fund will now incorporate exchange-traded derivatives to hedge its equity portfolio. This means that a portion of the investments will be protected against market fluctuations using derivative instruments. 

There are no details on how much of the portfolio will be hedged or whether this will be a significant change in the fund’s risk profile.

Exit Window for Investors

As per regulatory requirements, existing unitholders have a 30-day exit window from February 17, 2025, to March 18, 2025. Investors who do not agree with the changes can redeem or switch their holdings without any exit load during this period.

For investors who do not have any objections, no action is required. Their investments will continue under the new fund attributes from March 19, 2025.

Effective Date of Changes

All modifications, including the name change and use of derivatives, will be implemented from March 19, 2025. After this date, the fund will operate under its new name and revised investment approach.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.