Bandhan Multi Asset Allocation Fund: Asset Allocation for Long Term Wealth Creation

Bandhan Multi Asset Allocation Fund was launched on 31^st January 2024, and since then, it has given a return of 14.93% despite volatility surrounding the markets (source: Advisorkhoj, as on 17^th July 2026). In this article, we will review the Bandhan Multi Asset Allocation Fund and understand how the fund can be a good addition to your portfolio.

Current Market Scenario

Equity market bounced back and crude prices fell after ceasefire between US and Iran. However, volatility has returned to the market, after the ceasefire broke down. Brent crude price has jumped from $70 per barrel to $90 per barrel in the last one month (source: Bloomberg, as on 22^nd July 2026). The US dollar has been gaining strength versus other major currencies and precious metals. Gold prices firmed up from Rs 1.4 lakh per 10 gram to Rs 1.44 on a month to date basis (source: MCX, as on 22^nd July 2026). The 10 year Government Bond Yield firmed up by 9 bps from 6.75% to 6.84% on a month to date basis (source: Investing.com, as on 22^nd July 2026). After having been net sellers for 4 consecutive months, FII net buy stood at Rs 17,553 crores in July MTD (source: NSDL, as on 22^nd July 2026). Nifty 50 TRI has been volatile, whereas the US market index, S&P 500 has risen by 1.1% in the last one month (source: NSE, Bloomberg as on 22^nd July 2026). With US Iran war escalating and crude prices rising, there is uncertainty in the market. In current market conditions, multi asset allocation strategy may provide growth and stability to your investment portfolio.

Why should you invest in Multi Asset Allocation Funds?

• There is low correlation of returns between different asset classes (see the chart below).
  
  

  

  Source: NSE, MCX, Bloomberg, Advisorkhoj Research, as on 30^th June 2026. Equity is represented by Nifty 50 TRI, debt by Nifty 10 year benchmark G-Sec Index, Gold by MCX Spot Prices and International by S&P 500 in INR. Disclaimer: Past performance may or may not be sustained in the future



• The chart below shows the 5-year rolling returns of Nifty 50 TRI and Gold over the last 20 years. You can see that equity and gold are counter cyclical.
  
  

  

  Source: NSE, MCX, Advisorkhoj Research, as on 17^th July 2026



• The chart below shows that the 5-year rolling returns of Nifty 50 TRI and S&P 500 TRI in INR (for US equities) over the last 20 years. You can see that domestic and international equities outperform / underperform each other in different periods.
  
  

  

  Source: NSE, MCX, Advisorkhoj Research, as on 17^th July 2026



• The chart below shows that the 5-year rolling returns of Gold and S&P 500 TRI in INR (for US equities) over the last 20 years. You can see that gold and international equities are counter-cyclical.
  
  

  

  Source: NSE, MCX, Advisorkhoj Research, as on 17^th July 2026

About Bandhan Multi Asset Allocation Fund

The fund was launched on 31^st January 2024. Bandhan Multi Asset Allocation Fund invests in domestic equities, international equities, fixed income/debt, commodities (gold and silver), and arbitrage (see the graphic below). The asset allocation of the scheme ensures equity taxation.

Outperformed the category average

The chart below shows the 1-year rolling returns of the Bandhan Multi Asset Allocation Fund relative to its category average. You can see that the fund has consistently outperformed the category average.

Source: Advisorkhoj Research as of 17^th July 2026

Consistently in upper quartiles

The chart below shows the quartile ranking of the Bandhan Multi Asset Allocation Fund in the various quarters since its launch. You can see that the fund has featured in the top two quartiles in 7 out of last 10 quarters.

Source: Advisorkhoj Research as of 30^th June 2026

Limited downside risks for investors

The chart below shows the drawdowns of Bandhan Multi Asset Allocation Fund versus the broad equity market benchmark index, Nifty 50 TRI. You can see that the fund was able to limit downside risks for investors.

Source: Advisorkhoj Research as of 17^th July 2026

Portfolio Construct of the Bandhan Multi Asset Allocation Fund

Equity portion

The equity portion of the portfolio is actively managed using the 3D investment framework: -

• Diversity: Diversification across market cap segments and industry sectors


• Discipline: Limits for Mid and Small cap allocation, rebalanced quarterly


• Dependability: Performance track record, quality management and strong balance sheet
  
  

  

Fixed income portion

• Active duration management depending on macro and interest rate outlook. In the current environment, the portfolio is inclined towards short duration debt portfolio


• Allocation across Government Bonds, SDL, Corporate Bonds, and Money Market instruments. Preference for high credit quality in the debt portfolio

Commodities portion

The fund invests 6% each to gold and silver ETFs.

International equities portion

• The fund invests around 8% in international/overseas ETFs


• Aims to cover the US, Developed markets ex US and Emerging Markets

Current Portfolio

Source: Fund Factsheet as on 30^th June 2026

Who should invest in the Bandhan Multi Asset Allocation Fund?

The fund may be suitable for:

• Investors looking for capital appreciation over long investment horizons


• Investors who want to reduce portfolio volatility by diversifying across multiple asset classes


• Investors with a minimum 3 - 5 years investment tenure


• Investors with moderately high to high-risk appetites


• You can invest either in a lump sum or SIP based on your investment needs

Investors should consult their financial advisors or mutual fund distributors if Bandhan Multi Asset Allocation Fund is suitable for their investment needs.