Bonanza Prima Fund-Aggressive

What Is Bonanza Prima Fund – Aggressive?

Bonanza Prima Fund – Aggressive is a Mutual Fund Portfolio Management Service (MFPMS) strategy designed for investors seeking a more equity-oriented portfolio within the Prima range.

Unlike a conventional direct-equity PMS, the strategy can combine mutual funds with direct stocks, giving the portfolio manager flexibility across different investment instruments.

It is the most aggressive of the three Prima variants, with a permitted allocation of up to 50% in direct equity, up to 100% in equity-oriented mutual funds, and up to 20% in debt-oriented mutual funds.

The strategy was launched in December 2023 and carries a minimum investment requirement of ₹50 lakh.

Investors looking to understand the broader structure can explore portfolio management services.

Bonanza Prima Fund Snapshot & Key Terms

As reported to APMI, as of 31 July 2026.

The allocation percentages represent permitted ceilings, not a promise that the portfolio will always maintain those exact exposures.

The strategy's 2.30x portfolio turnover, as reported to APMI as of 31 July 2026, also indicates a more actively managed mandate than the Conservative variant.

Bonanza Prima Aggressive Asset Allocation: Equity, Debt and Mutual Fund Limits

The key differentiator of Prima Aggressive is its wider permitted exposure to equity.

Direct Equity: Up to 50%

The strategy can allocate up to 50% of the portfolio to direct equity.

This provides the portfolio manager with the ability to select individual companies rather than relying exclusively on mutual funds.

Direct-equity exposure also introduces company-specific risks, including concentration, liquidity and security-selection risk.

Equity-Oriented Mutual Funds: Up to 100%

The strategy can allocate up to 100% to equity-oriented mutual funds.

This gives the portfolio manager substantial flexibility to construct an equity-heavy portfolio through professionally managed funds.

The 100% ceiling should not be interpreted as a statement that the portfolio must maintain 100% equity-fund exposure.

Debt-Oriented Mutual Funds: Up to 20%

Debt-oriented mutual funds can account for up to 20% of the portfolio.

This is an important distinction between Aggressive and the more defensive Prima variants. The debt allocation ceiling is relatively limited, leaving less room for the portfolio to shift into defensive assets.

Other Mutual Funds: Up to 30%

The framework also permits up to 30% allocation to other mutual funds.

Together, these ceilings provide the portfolio manager with significant flexibility to adjust exposure across direct stocks, equity funds, debt funds and other mutual-fund categories.

The practical consequence is that the portfolio can carry substantially higher equity-market exposure than the Conservative variant. That can increase both upside and downside potential; higher equity exposure should not be equated with higher assured returns.

Aggressive vs Moderate vs Conservative

The three Prima variants are differentiated primarily by their permitted asset-allocation bands.

The most visible difference is the equity/debt inversion across the range.

Prima Aggressive permits the highest direct-equity exposure at 50% and the lowest debt-fund ceiling at 20%.

At the other end, Prima Conservative permits up to 50% in debt-oriented mutual funds and only up to 20% in direct equity.

Prima Moderate sits between the two.

Investors can therefore compare the three variants based on their permitted exposure rather than assuming that one variant will necessarily generate better returns than another.

For comparison, see Bonanza Prima Fund-Moderate and Bonanza Prima Fund-Conservative.

How Bonanza's Mutual Fund PMS Works

Bonanza Prima Aggressive is a discretionary PMS, meaning investment decisions are made by the portfolio manager within the mandate agreed with the investor.

The manager can determine:

• Which mutual funds to select
• Which direct stocks to include
• Position sizing
• Asset allocation
• When to increase or reduce exposure
• When to switch between investments
• How to position the portfolio within the permitted allocation ceilings

This makes the strategy different from simply buying a fixed basket of mutual funds.

Portfolio Turnover

As reported to APMI as of 31 July 2026, Prima Aggressive had portfolio turnover of 2.30x.

For context, the Conservative variant had a lower reported turnover figure of 1.31x.

The difference provides a measurable indication that the Aggressive mandate has involved more active portfolio changes.

Higher turnover can have practical consequences. More frequent purchases and sales can increase transaction costs and can also create additional taxable events when investments are sold or switched.

Turnover should therefore be evaluated alongside the strategy's investment objective rather than treated as inherently positive or negative.

Bonanza Prima Aggressive Minimum Investment, Fees and Exit Load

The minimum investment for Bonanza Prima Fund – Aggressive is ₹50 lakh.

The management fee is 1% per annum.

The strategy also carries a 1% exit load during the first year, according to the applicable strategy terms.

Investors should also account for the expenses associated with the underlying mutual funds. These expenses are separate from the PMS management fee.

The relatively active portfolio turnover of 2.30x, as reported to APMI as of 31 July 2026, may also result in additional transaction-related costs and more frequent taxable investment disposals.

Investors should review the latest fee schedule and applicable portfolio documents before investing.

Key Risks of Investing in Bonanza Prima Fund – Aggressive

Equity-market and drawdown risk

The primary risk is equity-market exposure.

With up to 50% permitted in direct equity and up to 100% permitted in equity-oriented mutual funds, the strategy can have substantial exposure to equity markets.

A market decline can therefore result in meaningful portfolio drawdowns.

Limited debt cushion

Debt-oriented mutual funds are capped at 20%.

This limits the amount of the portfolio that can be positioned in debt-oriented funds and can reduce the manager's ability to use debt exposure as a defensive allocation.

Direct-stock concentration

The direct-equity component creates company-specific risks.

Individual holdings can experience larger price movements than a diversified mutual-fund portfolio, particularly when the portfolio is concentrated in a smaller number of securities.

Asset-allocation risk

The permitted allocation bands give the manager significant discretion.

Investment outcomes can therefore be affected by decisions about when to increase or decrease equity, mutual-fund and direct-stock exposure.

Fee layering

Investors pay the PMS management fee while the underlying mutual funds can also have their own expense ratios.

The total cost of ownership should therefore consider both layers.

Turnover and transaction costs

A portfolio turnover figure of 2.30x indicates relatively active portfolio movement.

Higher trading activity can increase brokerage and transaction-related expenses and can also create additional taxable events.

Tax drag

Selling or switching investments can create taxable capital gains.

Consequently, a strategy with higher turnover can potentially generate more frequent taxable events than a buy-and-hold portfolio.

Liquidity risk

Direct stocks and underlying securities can have varying levels of liquidity. During stressed market conditions, liquidity can deteriorate and transaction costs can increase.

Key-person risk

The portfolio's implementation depends on the investment-management team and their asset-allocation and security-selection decisions. Changes in personnel or investment process can affect implementation.

How Is Bonanza Prima Fund Aggressive Taxed?

Bonanza Prima Fund – Aggressive is a PMS structure in which the investor's portfolio consists of securities and mutual-fund investments managed through the PMS arrangement.

The tax treatment depends on the underlying investment and the nature of the transaction.

For equity-oriented mutual funds and listed equity, capital gains are generally subject to the applicable rules for short-term and long-term capital gains. Debt-oriented mutual funds can have different tax treatment depending on the nature of the fund and applicable tax rules.

An important practical point is that switches and sales can create taxable events.

With Prima Aggressive reporting 2.30x portfolio turnover as of 31 July 2026, investors should understand that active portfolio changes can have tax consequences in addition to transaction costs.

Tax rules can change and individual circumstances differ. Investors should consult a qualified tax professional for advice applicable to their situation.

Who May Consider the Bonanza Prima Fund – Aggressive?

The strategy may be relevant for investors who:

• Meet the ₹50 lakh minimum investment requirement
• Have a relatively high tolerance for equity-market volatility
• Can tolerate potentially significant portfolio drawdowns
• Have a longer investment horizon
• Are comfortable with direct-stock exposure alongside mutual funds
• Understand that the debt allocation is capped at 20%
• Are comfortable with active portfolio management and potentially higher turnover
• Understand the additional costs and tax implications associated with portfolio changes

The strategy should not be selected simply because it has the word "Aggressive" in its name. The appropriate variant depends on the investor's objectives, time horizon, liquidity needs and tolerance for losses.

How ALTPORT Helps Investors Evaluate Bonanza Prima Fund – Aggressive

Bonanza Prima Fund – Aggressive should be reviewed as an equity-oriented Mutual Fund PMS rather than only by its “Aggressive” label. Investors should evaluate its permitted direct-equity exposure, equity-oriented mutual fund allocation, limited debt allocation, portfolio turnover, fee structure, exit load, taxation impact and suitability within their broader portfolio.

ALTPORT helps eligible investors review the latest product details, allocation framework, strategy documents, fee terms, risk disclosures and onboarding requirements. Investors can also compare Bonanza Prima Fund – Aggressive with other PMS strategies to understand whether the approach fits their investment horizon, equity-risk tolerance and overall portfolio allocation.