Bandhan Dynamic Term Reg Gr

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1–3 yearsInvestment Horizon

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What This Strategy Does

Bandhan Dynamic Bond Fund - Regular Plan - Growth is an India Fund Dynamic Bond strategy which captures India's evolving fixed income opportunity through active duration management, deploying capital across government securities to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The strategy has demonstrated resilient benchmark-relative behavior, outperforming in 5 of the past 11 years, highlighting its ability to deliver consistent outcomes across market cycles.

Concentrated Duration Positioning

The strategy's differentiated investment process is characterized by a concentrated exposure to government bonds, accounting for 96.72% of the portfolio, expressing conviction in the duration trade.

Tactical Opportunity Set

The strategy's high beta of 2.225 and elevated volatility of 4.798 position it as a tactical opportunity set, with the potential to capitalize on policy shifts and interest rate cycles.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Risk Profile

Standard Deviation4.2%

Maximum Drawdown-4.0% | Jun 2025

Sharpe Ratio0.54

Beta1.04

Upside Capture117%

Detailed Risks

Market Risk

Potential recession driven by high inflation could trigger risk-off sentiment, impacting fund's credit exposure.

Liquidity Risk

Volatility spikes in bond markets could impair fund's ability to rebalance or exit positions.

Concentration Risk

Concentrated exposure to Indian corporate bonds poses credit risk from weakening domestic growth outlook.

Specific Strategy Risk

Regulatory changes to interest rates or bond taxation could adversely impact fund's yield generation.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Delivers active duration management to navigate interest rate cycles. By dynamically adjusting portfolio duration based on the fund manager's interest rate outlook, this approach aims to mitigate downside risk from rising rates while capturing upside potential when rates decline. The impact is smoother returns with lower volatility compared to passive bond investing.

Broader Market View

Market Outlook

The equity markets appear to be in the early stages of a recovery phase, offering an attractive entry point as consumption and earnings normalize. Sectors like consumer discretionary, financials and industrials stand to benefit from this revival in domestic demand and capex cycle, though risks such as margin pressures remain.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment with exposure across consumer cyclicals, financials and technology. The portfolio's diversification across around 70 holdings, including market leaders, offers a balanced mix of growth and defensive qualities. A moderate beta and flexibility could provide risk-adjusted participation in the recovery.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach focused on companies with pricing power and resilient business models appears well-positioned.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies across market capitalizations and sectors, with a focus on sustainable growth drivers. Selection: The selection process suggests a preference for companies with strong fundamentals, attractive growth prospects, and reasonable valuations relative to their quality characteristics. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach, balancing risk management with the pursuit of alpha generation.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

Triparty Repo Trp_16092681.54%

7.36% Govt Stock 20526.64%

Small Industries Development Bank Of India6.11%

Tata Capital Housing Finance Limited3.12%

Bajaj Housing Finance Limited1.54%

Corporate Debt Market Development Fund Class A20.47%

Cash Margin - Ccil0.28%

7.24% Govt Stock 20550.25%

Net Current Assets0.05%

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1.65%

Regulatory & Tax Information

INF194K01QG4

ISIN

DailyDealing Frequency

CRISIL Dynamic Bond A-III TR INRBenchmark

Capital Gain Tax | Taxed as per Income Tax Slab

Tax Implications (India)