BONANZA PULSE SECTOR FUND

What Is the Bonanza Pulse Sector Fund?

Bonanza Pulse Sector Fund is an equity PMS strategy launched on 2 February 2025 and managed by Achin Goel. It seeks to generate alpha by actively rotating investments across sectors and industries rather than restricting the portfolio to one permanent theme.

The strategy is described as sector- and market-cap-agnostic, meaning the mandate does not require the manager to remain committed to a particular sector or market-cap category. The objective is to identify emerging trends and short-term opportunities while using technical analysis, relative strength and fundamental research to support stock selection. 

This makes Pulse different from a conventional diversified equity PMS. The central investment decision is not simply "which stocks look attractive?" but also which sectors currently offer the strongest opportunity and when exposure should change.

The investment horizon stated in Bonanza's strategy material is five years. 

Bonanza Pulse Sector Fund Snapshot

Data and AUM are as reported to APMI, as of 31 July 2026.

The APMI record also reports turnover of 0.86% for one month and 6.41% for one year, as of 31 July 2026. 

The AUM shown here is the strategy-level figure reported by APMI and should not be confused with Bonanza's overall PMS assets.

Bonanza Pulse Sector Fund Investment Strategy

The defining feature of Pulse is active sector rotation.

Bonanza's stated investment approach is based on the observation that market leadership is often concentrated in a limited number of sectors at a given time. Rather than maintaining the same sector exposures regardless of market conditions, Pulse attempts to identify sectors with the potential to outperform and shift portfolio exposure accordingly. 

Investors who want to understand the broader PMS structure can also review how portfolio management services work before evaluating a tactical sector-rotation PMS strategy.

The process combines three broad inputs:

1. Technical indicators

Technical analysis plays an important role in identifying price trends, momentum and relative strength. The strategy looks for stocks demonstrating strong price behaviour rather than relying exclusively on historical fundamentals.

2. Relative strength

Relative strength helps identify sectors and stocks that are performing better than the broader market or their peers. This becomes particularly relevant in a sector-rotation strategy because the objective is to identify where market leadership is moving.

3. Fundamental validation

Technical signals are supported by fundamental analysis. The strategy therefore does not treat price momentum in isolation; business fundamentals are used as a validation layer before making investment decisions. 

The portfolio is actively managed and can be realigned as market conditions change. Bonanza's stated framework includes a 15% fixed stop-loss per stock, a maximum 5% exposure to any single stock, and a 20–25% sector allocation cap. These controls are intended to prevent one stock or sector from overwhelming the portfolio even though Pulse is designed to capture sector-specific opportunities. 

Importantly, Pulse is not a "technology fund", "banking fund" or any other permanently defined sector fund. Its sector focus is dynamic. For example, the portfolio may move toward a sector showing improving relative strength and subsequently reduce that exposure when the investment thesis or market leadership changes.

The latest available Bonanza factsheet illustrates this dynamic structure: its portfolio included exposures across areas such as healthcare, mining, iron and steel, power and finance, alongside substantial cash exposure at the stated reporting date. 

That distinction matters. Investors considering Pulse should understand it as a sector-rotation PMS, rather than a concentrated bet on one industry.

Bonanza Pulse vs Aegis, Edge, Value, Growth and Multicap

Bonanza's six equity PMS strategies do not follow the same investment mandate. The most useful distinction is what each strategy is primarily trying to identify.

Bonanza describes Aegis as a strategy combining fundamental and technical strength with tactical, momentum and value opportunities. Edge focuses on emerging leaders and companies with earnings-growth potential, while Value takes a bottom-up approach to identifying companies with superior growth potential or special near-term opportunities. Growth focuses on businesses with strong fundamentals and identifiable catalysts for earnings expansion. Multicap uses a GARP approach, combining top-down and bottom-up analysis. 

Pulse is different because sector positioning itself is a central part of the investment decision. The strategy can move between industries as market leadership changes, while its stock selection process then determines which companies within those sectors are attractive.

For investors comparing these approaches, the question is therefore not simply which strategy has the highest potential return. It is which investment philosophy fits the role the PMS is expected to play within the overall portfolio.

Bonanza Pulse Sector Fund Minimum Investment, Fees and Exit Load

The minimum investment is ₹50 lakh.

As reported to APMI on 31 July 2026, the fee structure comprises:

The performance-fee structure means investors should understand the applicable hurdle and performance-fee mechanics before investing. The fixed fee and performance-linked component should be evaluated together rather than viewed separately.

The exit load is 1% when the portfolio is exited before one year. 

Because this is a PMS, investors should also distinguish the management and performance charges from brokerage, statutory levies, custody and other transaction-related expenses that may apply to the portfolio.

Key Risks of Investing in a Sector-Focused PMS

The primary risk of Pulse is sector concentration.

A diversified equity portfolio can potentially offset weakness in one industry through strength in another. A sector-focused strategy can experience sharper drawdowns when its chosen sectors or themes fall out of favour. Pulse attempts to manage this through active rotation and sector-level limits, but those mechanisms do not eliminate the underlying risk.

Sector concentration risk

The strategy actively seeks sectors with potential to outperform. If the chosen sectors underperform, the portfolio can be affected disproportionately compared with a broadly diversified strategy.

Single-theme drawdown

Market leadership can reverse quickly. A sector that shows strong momentum can subsequently experience valuation compression, earnings disappointment or a change in investor sentiment.

Short track record

Pulse began operations in February 2025. As of 31 July 2026, it therefore has a relatively short live operating history. Investors should be careful about drawing long-term conclusions from a limited track record.

Portfolio liquidity

Concentrated equity positions can become harder to transact efficiently during periods of market stress, particularly when market liquidity falls sharply.

Manager and execution risk

Sector rotation requires decisions about both where to invest and when to move. Incorrect sector identification or delayed rotation can affect portfolio outcomes.

Market risk

The underlying investments are equities and remain exposed to broader market movements, economic conditions, interest rates, corporate earnings and investor sentiment.

Small strategy size

With AUM of ₹10.04 crore as reported to APMI on 31 July 2026, Pulse is still a relatively small strategy. AUM can change as clients enter or exit and should not by itself be treated as a measure of strategy quality. 

How Is PMS Income Taxed for Indian Investors?

A key structural feature of PMS is that the investor owns the securities directly rather than owning units of a pooled fund. Bonanza states that PMS clients own securities directly in their demat accounts. 

For an individual investor, gains from the sale of listed shares in a PMS portfolio are generally considered capital gains when the investments are held as capital assets. The applicable rate depends on whether the gain is short-term or long-term and on the nature of the security and transaction.

For listed equity shares on which applicable STT conditions are met, the current special rates include 20% for short-term capital gains under Section 111A and 12.5% for long-term capital gains under the applicable provisions. 

Portfolio churn can therefore have tax consequences. Selling one stock and buying another may be an investment decision, but the sale can also crystallise a taxable gain or loss.

Investors should not evaluate a PMS solely on pre-tax portfolio outcomes. Transaction frequency, realised gains, loss set-offs and the investor's overall tax position can affect the post-tax result. Tax treatment can vary with circumstances and regulations, so investors should consult a qualified tax adviser before making investment decisions.

Who May Consider the Bonanza Pulse Sector Fund?

Bonanza Pulse Sector Fund may be considered by investors who:

• Can commit at least ₹50 lakh to a PMS.
• Already have a diversified core portfolio and are looking for a more tactical equity allocation.
• Understand and accept the additional risk associated with sector-focused investing.
• Have a sufficiently long investment horizon to accommodate market cycles.
• Are comfortable with active sector rotation rather than a static allocation.
• Understand that the strategy has a relatively short operating history since its February 2025 inception.

It may not be appropriate for investors looking for capital protection, low-volatility investing or a highly diversified core equity portfolio.

The strategy is better viewed as a specialised allocation within a broader portfolio, rather than automatically treating it as a replacement for a diversified equity strategy.

For further information or to discuss suitability, contact our investment team.