Bandhan, ICICI Prudential roll out new funds to tap momentum and multi-factor strategies
Bandhan Mutual Fund and ICICI Prudential Mutual Fund announced the launch of new fund offers, seeking to capitalise on emerging market opportunities. Bandhan is introducing the Multi-Factor Fund, an open-ended equity fund employing a quantitative model that blends momentum, value, quality, and low volatility factors. Simultaneously, ICICI Prudential is launching the Active Momentum Fund, crafted to harness opportunities from persistent price and earnings trends in the market.
The ICICI Prudential Active Momentum Fund, an open-ended equity scheme focusing on momentum, requires a minimum application amount of ₹5,000, with additional investments permitted in increments of ₹1,000. Managed by Manasvi Shah and Sharmila D’silva for overseas investments, the fund is benchmarked against the Nifty 500 TRI. The NFO period is scheduled from July 8 to July 22, 2025.
Sankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential AMC, said, “We aim to approach momentum in a fundamental manner by focusing on earnings/estimates momentum, complemented by price momentum. India’s equity market is diverse with stocks and sectors displaying varied earnings trends at different points in time, and our Scheme aims to capitalise on these trends. The Scheme has the flexibility to move across sectors; market caps and uses a combination of top down and bottom-up approach in portfolio construction.” This strategy is intended to offer adaptability in portfolio management.
The Bandhan Multi-Factor Fund’s NFO opens on July 10 and closes on July 24, with subscriptions available through mutual fund distributors, online platforms, or directly via the fund’s website. This fund seeks to offer diversified equity exposure by blending multiple factors known to perform well in various market conditions. A proprietary scoring and ranking system is used to select the final portfolio of stocks.
Vishal Kapoor, CEO of Bandhan AMC, emphasised the need for adaptive strategies, stating, “As markets become more dynamic, investors need adaptive strategies. A multi-factor approach reduces reliance on any single factor and aims to improve overall risk-adjusted returns.” The scheme is designed to provide flexibility in investment styles and sector movements, catering to diverse market environments.
Momentum investing is a core strategy of these funds. ICICI Prudential focuses on price momentum, which identifies stocks with favourable price trends, while Bandhan incorporates this with other factors such as value and quality. This multi-factor strategy is devised to enhance the portfolio’s resilience amid market fluctuations.
Both funds present opportunities for investors to diversify their portfolios across market cycles. Serving over 3.5 million investor folios across India, Bandhan AMC, alongside ICICI Prudential, are committed to leveraging market dynamics to optimise returns for their investors.
The introduction of these funds is part of a broader mutual fund industry trend towards adopting dynamic and adaptable investment strategies. By focusing on multiple factors, these funds aim to mitigate risks associated with reliance on a single investment strategy, offering investors a more balanced approach to equity investing.