Bandhan Small Cap Fund — Deep Analysis

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Fund Overview

Bandhan Small Cap Fund — Quick Summary

Bandhan Small Cap Fund was launched in February 2020 — one of the newest entrants in the small cap category. Despite its short history, the fund has quickly built a strong track record by focusing on quality businesses across a wide portfolio of 80+ stocks. Managed under the Bandhan MF umbrella, the fund stands out for its very low expense ratio of 0.42% — one of the cheapest active small cap funds in India.

Fund House

Bandhan Mutual Fund

✓ Suitable For

✓Investors with 7+ year horizon who can stay patient through crashes

✓SIP investors doing rupee cost averaging every month without stopping

✓Those seeking high wealth creation and comfortable with high volatility

✓Experienced investors using this as a satellite allocation in a diversified portfolio

✗ Not Suitable For

✗First-time investors — start with a large cap or hybrid fund first

✗Anyone who needs money within 3–5 years — small caps can be down for years

✗Investors who panic sell — 40–50% crashes are normal in this category

✗Those making it their only fund — concentration in small caps is dangerous

Who Runs This Fund

Fund Manager

SS

Sunit Garg

Fund Manager, Bandhan Mutual Fund

Managing Since

2020

Experience

18+ Years

Funds Managed

3 Funds

Total AUM

₹12,000 Cr+

Sunit Garg manages Bandhan Small Cap Fund since inception. Known for a diversified approach with 80+ holdings, he focuses on identifying emerging businesses in niche segments before they become mainstream. His style blends growth and value across micro and small cap universe.

Fund History

Key Moments in Fund's Life

February 2020

🚀 Fund Launch

Bandhan Small Cap Fund launched its NFO just weeks before the COVID crash. Timing could not have been worse for early investors, but the subsequent recovery was spectacular.

March 2020

💥 COVID Crash — Just Weeks After Launch

The fund was barely weeks old when COVID triggered a 35-40% market crash. New investors faced immediate losses. However, those who stayed invested or continued SIPs captured the full recovery.

2020 — 2022

📈 Spectacular Recovery Run

Post-COVID small cap recovery was extraordinary. Being a new fund without legacy holdings, the manager had flexibility to build the portfolio from scratch in a rising market — a significant advantage.

2022 — 2023

🔄 Consolidation Phase

Global headwinds — US rate hikes, geopolitical tensions — slowed small cap momentum. The fund held its ground relatively well, reflecting the quality of stock selection.

2024

📊 AUM Crosses ₹9,000 Cr

Despite being only 4 years old, Bandhan Small Cap crossed ₹9,000 Cr AUM — a reflection of strong returns and growing investor confidence in the fund.

What They Don't Tell You

The Dark Chapters

Every fund has painful periods. Here's an honest look at when Bandhan Small Cap Fund struggled — because understanding this is crucial before investing.

February 2020 — March 2020 · 6 Weeks

Born Into a Crash

Bandhan Small Cap Fund had the misfortune of launching weeks before one of the sharpest market crashes in history. Investors who applied in the NFO watched their investment drop 35-40% almost immediately. While the recovery was strong, this beginning shook many early investors who exited at losses.

NAV fell ~38% within weeks of launch

Limited Track Record

Only 4+ Years of History

Unlike SBI, HDFC or Nippon Small Cap with 10-15 year track records, Bandhan Small Cap Fund has only been around since 2020. It has NOT been tested through a full bear cycle (2018-2020 type drawdown). Investors must account for this uncertainty. A 4-year bull market track record does not guarantee future performance.

Risk: Unproven in full cycle

2024 — Ongoing

Valuation & AUM Concern

As AUM crossed ₹9,000 Cr, the challenge of deploying large capital in small caps (limited liquidity) grows. At the same time, small cap valuations became stretched in 2023-24, raising questions about forward return potential from current levels.

AUM growth may strain small cap deployment

⚠️ Educational Disclaimer: The dark chapters above are presented for educational awareness only. Past difficulties do not predict future performance. CRNIndia.com is NOT a SEBI/AMFI registered advisor. Please consult a qualified financial advisor before investing.

Performance

Returns vs Benchmark

1 Month

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Nifty SC: —

3 Month

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Nifty SC: —

6 Month

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Nifty SC: —

1 Year

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Nifty SC: —

3 Year CAGR

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Nifty SC: —

5 Year CAGR

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Nifty SC: —

10 Year CAGR

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Nifty SC: —

Since Inception

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Sep 2009

Price History

NAV History

Consistency Analysis

Rolling Returns ℹ️ What is this?

Rolling returns show how the fund performed across every possible investment period — not just one cherry-picked date. This reveals true consistency. Learn more →

1Y Rolling (Avg)

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% of times positive: —

3Y Rolling (Avg)

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% of times positive: —

5Y Rolling (Avg)

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% of times positive: —

1-Year Rolling Returns Each point = 1yr return from that date

Risk Analysis

Maximum Drawdown ℹ️ What is this?

Drawdown shows the biggest fall from peak NAV. This is what investors actually experience during market crashes. Learn more →

Max Drawdown Ever

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Recovery time: —

2020 Covid Crash

-40.2%

Recovery: 14 months

2018 IL&FS Crisis

-28.6%

Recovery: 24 months

Current from Peak

—

Peak NAV: —

Drawdown Chart % fall from rolling peak NAV

Valuation Signal

NAV vs 200-Day Moving Average

When NAV is above 200 DMA, the fund is in an uptrend. When below, it signals caution. Many investors use this as a simple entry/exit signal.

Current NAV

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200 DMA

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NAV vs DMA

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Loading signal...

NAV vs 200 DMA

Risk Metrics

Risk Ratios

Alpha (3Y)

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Excess return over benchmark. Higher is better.

Beta (3Y)

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Volatility vs market. >1 means more volatile.

Sharpe Ratio

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Return per unit of risk. >1 is considered good.

Sortino Ratio

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Like Sharpe but only penalises downside risk.

Std Deviation

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How much returns fluctuate. Lower = more stable.

R-Squared

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How closely it tracks the benchmark index.

Benchmark Comparison

Fund vs Nifty Smallcap 250

₹1 Lakh invested — Growth comparison

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