Bandhan Aggressive Hybrid Fund’s profitable playbook: Self-discipline, diversification, and long-term focus
Edited excerpts from a chat:
What elements have pushed Bandhan Aggressive Hybrid Fund’s constant outperformance throughout 1-, 3-, and 5-year horizons?
I usually don’t run the Bandhan Aggressive Hybrid Fund based mostly on huge macro calls. The outperformance is essentially attributable to sturdy safety choice, which in flip stems from a disciplined funding course of. Our strategy combines deep, bottom-up analysis with a long-term funding horizon. In fact, the market setting has additionally been supportive over the previous 18 months, which has helped our efficiency.
With fairness allocation at present on the greater finish of the goal band, what indicators are guiding this conviction in equity-led development?
We comply with a true-to-label aggressive technique, which generally retains us positioned towards the upper finish of our fairness allocation band. The portfolio maintains a balanced combine throughout large-, mid-, and small-cap segments. I imagine earnings development might begin to speed up within the second half of FY26, led by home cyclicals and choose international cyclicals. As of September, the fund’s fairness allocation stood at roughly 78%.
Take us via how you could have tweaked your portfolio in September and the rationale behind it?
There haven’t been any main adjustments to the portfolio in September. The one notable adjustment was a marginal improve in publicity to the auto sector throughout the client discretionary house, following the rationalisation of GST charges.
Capital items are one in all your prime overweights. What is the logic behind it, as it seems that the market’s desire is now shifting from the capex theme to consumption.
The primary indicators of a pivot from capex to consumption have been seen within the final funds. Our publicity throughout the capital items house may be very selective. At present have a bias towards firms positioned to learn from the vitality transition. This isn’t simply an India story; the world is more and more being powered by electrons slightly than molecules, and we imagine this structural shift will proceed to create alternatives.
How does the multi-cap, multi-style technique throughout worth and momentum guarantee resilience throughout market cycles?
Our focus is on assessing the potential IRR {that a} safety can ship over the medium time period. If an funding meets our return hurdle, we’re joyful to incorporate it within the portfolio. What we constantly practise is prudent diversification and disciplined danger administration, guaranteeing we don’t tackle extreme lively danger, whatever the market part.
What’s your one contra wager within the present market state of affairs that you simply suppose many buyers are lacking out on?
Somewhat than calling out a single sector, the main target is on choose large- and mid-cap firms throughout client, home, and international cyclical areas that have been as soon as market favourites. Many of those shares, which beforehand traded at lofty valuations, now seem fairly priced relative to their development potential.
(Disclaimer: Suggestions, strategies, views, and opinions given by specialists are their very own. These don’t signify the views of the Financial Occasions)
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