Fund Delivers 13x Return in 20 Years

Bandhan Large and Midcap Fund has completed 20 years while crossing the ₹10,000 crore assets under management (AUM) milestone. Managed by Rahul Agarwal and Ritika Behera, the scheme has turned a ₹10,000 investment at inception

into ₹1.34 lakh — more than a 13-fold increase, according to the fund house.

The equity scheme, which invests in a mix of large- and mid-cap stocks, has outperformed its benchmark over one-, three-, five- and ten-year periods. Large- and mid-cap stocks together account for nearly 80% of India’s market capitalisation, providing the fund with a broad investment universe.

The portfolio spans 20 sectors, including several outside the Nifty 50 index.

With a beta below 1 and a Sharpe ratio of 1.7, the managers have

aimed to reduce downside risk while enhancing returns. The scheme maintains at least 35% allocation each to large- and mid-cap stocks, with up to 20% tactically invested in small-cap stocks to generate alpha. The strategy focuses on high-growth and quality sectors expected to outperform nominal GDP growth, complemented by thematic, cyclical, and value opportunities, the fund house said.

In their June 2025 commentary, the fund managers noted expectations of low nominal GDP growth in the first half of FY2026, which

could keep markets consolidating in a narrow range.

“Our base case probability is of a high single to low double-digit return in the next 6 to 12 months. Services remain our major overweight, while we are underweight in capital goods and utilities,” they said.

With a minimum SIP of ₹100, the fund offers an accessible entry point for investors. However, analysts caution that past performance does not guarantee future returns, and market conditions, sectoral trends, and economic growth could impact performance. Investors should assess

risk tolerance and investment horizons before committing capital.