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Arudha – Bandhan Mutual Fund

Distributed through AltPort Experts. Comprehensive fund documentation can be accessed through our research team.
Category SIF
Company Bandhan Mutual Fund
Fund Managers Asit Pal
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About Company

Bandhan Mutual Fund

Bandhan Mutual Fund, formerly IDFC Mutual Fund, is one of India's leading asset management companies, overseeing assets worth approximately ₹1.97 lakh crore as of early 2026. Managed by Bandhan AMC Limited, the fund house was rebranded in March 2023 following its acquisition by a consortium led by Bandhan Financial Holdings Limited, GIC, and ChrysCapital. It offers over 70 schemes across equity, debt, and hybrid categories, with a strong emphasis on research-driven strategies like multi-factor investing and sector-specific opportunities. Led by CEO Vishal Kapoor, the AMC is recognized for its extensive reach across 60 cities and its commitment to simplifying investment solutions for retail and institutional investors.

Fund Snapshot

Category Hybrid Long-Short Fund
Benchmark CRISIL Hybrid 85+15 Conservative Index
Subscription Daily (Business Days)
Inception Date 09 January 2026
SIF ID SIF-40
Type Interval Strategy

Strategy Overview

Arudha is structured as an interval hybrid long-short strategy with flexible allocation across equity, debt, and derivatives. The framework allows the fund to dynamically adjust exposure within prescribed ranges rather than follow a fixed allocation.

The strategy includes:

  • Core exposure to equity and equity-related instruments for return generation
  • Allocation to debt and money market instruments for income and stability
  • Use of derivative positions, both hedged and unhedged, to manage volatility and enhance returns
  • Limited allocation to REITs and InvITs for additional yield and diversification

The presence of both hedged (0–100%) and unhedged short positions (0–25%) indicates an active risk management approach. This allows the portfolio to reduce net market exposure when required, while still maintaining participation in underlying asset classes.

Objective

The stated objective is to generate optimal returns through a combination of equity and debt investments, supplemented by selective derivative exposure.

From a portfolio construction perspective, this translates into:

  • Return generation through equity allocation within a broad 25%–75% band
  • Income and capital preservation through debt and money market instruments
  • Risk-adjusted enhancement using derivatives, including short positions

The absence of a fixed allocation suggests that performance will depend significantly on allocation decisions and market positioning rather than static exposure.

Redemption Details

  • The strategy operates under an interval structure
  • Redemption is available twice a week: Monday and Thursday
  • This structure provides periodic liquidity while allowing the fund to manage portfolio positioning without continuous inflows and outflows

Portfolio Allocation

Asset Class Allocation Range
Equity & Equity-related Instruments 25% – 75%
Debt & Money Market Instruments 25% – 75%
Unhedged Derivative Short Positions (Equity & Debt) 0% – 25%
REITs / InvITs 0% – 20%
Hedged Positions (Equity & Debt) 0% – 100%

Portfolio Construction Insights

  • Wide allocation bands (25%–75%) indicate a high degree of flexibility, allowing the strategy to shift between growth-oriented and defensive positioning
  • Simultaneous use of hedged and unhedged exposures enables adjustment of net market exposure based on market conditions
  • Derivative usage (up to 25% unhedged) introduces an additional layer of active risk and return management
  • Inclusion of REITs/InvITs provides a yield-oriented component that may support income generation

Overall, the structure is suited to an actively managed approach where asset allocation decisions are a primary driver of returns.

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Asit Pal

Asit Pal

Mr. Asit Pal is the Chairperson and Independent Director of Bandhan Mutual Fund Trustee Limited, bringing over 33 years of experience in the financial services sector. He specializes in corporate credit and risk management, having spent over three decades at Bank of Baroda and served as the Executive Director of the erstwhile Corporation Bank. Beyond his role at Bandhan, he has chaired Bandhan Financial Services Limited and contributed to the Advisory Board on Bank, Commercial & Financial Frauds for the Central Vigilance Commission. A graduate of the University of Calcutta, he is also a qualified Chartered Accountant (ACA).

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Frequently Asked Questions

Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.

1. What is the investment objective of Arudha – Bandhan Mutual Fund? +

Arudha aims to generate optimal returns through a diversified combination of equity, debt, and derivative strategies. The fund seeks to balance growth opportunities with income generation and risk management by dynamically adjusting its asset allocation.

2. How does Arudha's hybrid long-short strategy work? +

The strategy invests across equities, debt instruments, and derivatives. Fund managers can increase or reduce market exposure through hedged and unhedged derivative positions, allowing the portfolio to adapt to changing market conditions while managing risk.

3. What is the asset allocation range of the Arudha strategy? +

The fund can allocate 25%–75% to equity and equity-related instruments, 25%–75% to debt and money market instruments, up to 25% to unhedged derivative short positions, up to 20% to REITs/InvITs, and up to 100% in hedged positions as part of its risk management framework.

4. How often can investors redeem their investments in Arudha? +

Arudha follows an interval fund structure, with redemption opportunities available twice a week—on Mondays and Thursdays. This provides periodic liquidity while allowing the fund manager greater flexibility in portfolio management.

5. Who may consider investing in Arudha? +

The strategy may appeal to investors seeking a flexible, actively managed portfolio that combines equity growth potential, debt stability, and derivative-based risk management. It is particularly suited for those looking for a balanced approach rather than a purely equity-driven investment.