Bandhan AMC Limited, formerly IDFC AMC, has launched the Bandhan Contra Fund, an open ended equity scheme that follows a contrarian investment strategy. The New Fund Offer opens on 10-08-2026 and closes on 24-08-2026.
The scheme aims to build long term capital appreciation from a diversified portfolio of equity and equity related instruments. Rather than following the crowd into popular sectors, a contra fund deliberately looks for businesses the market has temporarily turned away from, where the fund manager believes the underlying fundamentals still hold up.
For an investor who already holds growth or large cap funds, a contrarian strategy can behave differently across market cycles. It is worth weighing before the NFO window closes.
Bandhan Contra Fund NFO details
Fund name | |
Fund type | Open ended equity scheme |
Category | Equity scheme, contra fund |
Nature of scheme | Actively managed, follows a contrarian investment strategy across market capitalisations |
Benchmark | BSE 500 Total Return Index (TRI) |
Fund managers | Prateek Poddar and Manish Gunwani (equity portion), Harshal Joshi (debt portion), Ritika Behera and Gaurav Satra (overseas investment portion) |
NFO opens | 10-08-2026 |
NFO closes | 24-08-2026 |
Allotment/Reopening date | Not available in the SID |
Minimum investment | Rs 1,000 and in multiples of Re 1 thereafter |
Additional investment | Rs 1,000 and any amount thereafter |
SIP amount | Rs 100, in multiples of Re 1 thereafter, minimum six instalments |
NAV | Rs 10 per unit during the NFO |
Stamp duty | 0.005% of the purchase value |
Entry load | Nil, as it is on all Indian mutual fund schemes |
Exit load | 0.5% if redeemed within 30 days of allotment, nil after that |
Bandhan AMC Limited: AMC details
AMC name | Bandhan AMC Limited |
Assets under management | Around Rs 1,87,716 crore |
Website | |
Registered office | 6th Floor, One World Centre, 841, Senapati Bapat Marg, Prabhadevi, Mumbai 400013 |
Contact number | 1-800-266 66 88 / 1-800-300 666 88 (toll free) |
Source: AMFI India — New fund offer : Bandhan Contra Fund
What has Bandhan AMC launched?
Bandhan AMC Limited has introduced an open ended equity scheme built around a contrarian strategy. The fund can invest across large, mid and small cap stocks, so it is not tied to one part of the market.
A contra fund works differently from a typical growth fund. Instead of buying today’s market favourites, the manager looks for businesses that have fallen out of favour, then checks whether that is temporary or lasting.
The scheme will predominantly be actively managed, with Prateek Poddar and Manish Gunwani leading the equity portion.
How does the Bandhan Contra Fund strategy work?
The fund managers start by screening for businesses that are currently unpopular. Weak recent results, negative headlines, or a sector going through a rough patch can all put a stock on this list. From there, the team studies whether the fall is temporary or structural.
Step | What happens? |
1 | Screen the market for out of favour businesses across market caps |
2 | Separate a temporary setback from a lasting problem |
3 | Assess valuation against real worth, not recent price trend |
4 | Check balance sheet strength and cash flow quality |
5 | Build a diversified portfolio across sectors and caps |
6 | Size each position by conviction and liquidity |
7 | Track news flow, and exit if the original reasoning breaks down |
8 | Rebalance as opportunities shift across the market cycle |
Let’s understand through an example
Say you invest Rs 10,000 in the NFO at Rs 10 per unit for 1,000 units. That money is pooled and used to buy shares the fund manager sees as undervalued and out of favour. Your NAV then moves with how those shares perform, not the broader index. This only shows how your money moves through the fund, not likely returns.
Portfolio allocation of the Bandhan Contra Fund
Instrument | Indicative allocation (% of total assets) |
Equity and equity related instruments | 80% to 100% |
Money market instruments, other liquid instruments (including government securities), and units of domestic overnight, liquid and money market mutual funds | 0% to 20% |
Gold ETFs | 0% to 5% |
Silver ETFs | 0% to 5% |
Units issued by InvITs | 0% to 10% |
The scheme may also invest up to 20% of assets in foreign securities and up to 20% in securities lending, per the Scheme Information Document.
Investment strategy behind the fund
Stock selection follows a bottom-up, contrarian approach: the managers look at one company at a time rather than start from a sector or macro call. Prateek Poddar and Manish Gunwani lead the equity portion, Harshal Joshi manages the debt sleeve, and Ritika Behera and Gaurav Satra oversee the overseas allocation.
The scheme can use equity derivatives for hedging or rebalancing, which carry their own risks (see Key risks below). Liquidity is managed by holding a portion in money market instruments. To weigh this against your existing holdings, Zenith’s investment planning service can help.
Potential benefits of the fund
Potential benefit | Why it matters |
Contrarian diversification | Can behave differently from momentum or growth funds already in your portfolio |
Exposure across market caps | Not restricted to only large, mid or small cap stocks |
Entry at depressed valuations | Aims to buy businesses when they are out of favour, rather than after a rally |
Active professional selection | Managed by a team with prior experience across large Indian AMCs |
Key risks to weigh
Risk | What it means |
Market risk | Share prices can fall with overall market conditions, and the NAV falls with them |
Value trap risk | A stock that looks undervalued may stay depressed if its business problems turn out to be permanent |
Concentration risk | Stock picks can cluster around a theme or sector coming out of favour together |
Derivative risk | Using derivatives for hedging or rebalancing can add to gains or losses if not managed carefully |
Liquidity risk | Some smaller or less traded holdings can be harder to buy or sell without moving the price |
Who may consider this fund
Investor type | Why it may fit |
Long term equity investors, 5 years or more | Contrarian bets can take a full market cycle to play out |
Investors diversifying an existing portfolio | Adds a style that can move differently from growth or momentum funds |
Investors comfortable evaluating out of favour businesses | The strategy’s core idea is buying what the market has temporarily rejected |
Who may not find it suitable
Investor type | Why it may not fit |
Short term investors, under 3 to 5 years | A contrarian thesis often needs a full market cycle to play out |
Investors seeking predictable, steady returns | Value traps can weigh on performance if the market never re-rates the stock |
Those uncomfortable with equity swings | This remains a high risk equity scheme and can underperform for extended periods |
Comparison with traditional investment options
Feature | Fixed deposit | Debt mutual fund | Hybrid fund | Equity mutual fund | This fund |
Risk | Low | Low to moderate | Moderate | High | High |
Return potential | Low, fixed | Low to moderate | Moderate | High | High |
Volatility | None | Low | Moderate | High | High |
Liquidity | Low to moderate | High | High | High | High |
Horizon | Short to medium | Short to medium | Medium | Long | Long |
Suitable investor | Safety first | Income | Balanced | Growth | Contrarian, patient growth |
Bandhan Contra Fund review by Zenith Finserve
This fund suits an investor who already holds large cap or growth oriented equity funds and wants a style that behaves differently across market cycles, over a horizon of five years or more.
A contrarian approach depends heavily on the manager’s ability to spot a genuine value trap, so the outcome leans more on active stock picking than on riding a broad market trend.
This remains a high risk equity scheme with no track record of its own. Weigh your goals, horizon and risk comfort, ideally as part of a wider goal based financial plan, rather than treat this review as advice. If unsure whether it fits your plan, Zenith’s mutual fund advisors can walk through it with you.
How Zenith Financial Management can help
At Zenith Financial Management, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments. We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith
Zenith has covered other recent active equity NFOs that offer a point of comparison, though none follow an identical contrarian mandate. The WhiteOak Capital Dividend Yield Fund NFO is another active, BSE 500 TRI benchmarked equity launch, built around dividend paying stocks rather than a contrarian screen.
The TRUSTMF Large & Mid Cap Fund NFO and the Wealth Company Large & Mid Cap Fund NFO are both large and mid cap active launches, useful for contrast between cap based and style based investing.
Frequently asked questions
What is the Bandhan Contra Fund?
An open ended equity scheme from Bandhan AMC Limited, following a contrarian strategy across market caps.
When does the Bandhan Contra Fund NFO open and close?
It opens 10-08-2026 and closes 24-08-2026.
What is the minimum investment in the NFO?
Rs 1,000 as a lump sum, or Rs 100 for an SIP with a minimum of six instalments.
Is Bandhan Contra Fund NFO good to invest in?
Depends on your goals, horizon and comfort with a contrarian approach. It suits a horizon of five years or more.
What does the fund invest in?
Mainly contrarian equity picks, with room for money market instruments, Gold and Silver ETFs and InvIT units.
What is the benchmark for this fund?
The BSE 500 Total Return Index (TRI).
Is there an entry or exit load?
Entry load is nil, as on all Indian mutual funds. Exit load is 0.5% within 30 days of allotment, nil after that.
Who manages the Bandhan Contra Fund?
Prateek Poddar and Manish Gunwani manage equity, Harshal Joshi manages debt, and Ritika Behera and Gaurav Satra manage overseas investments.
Can I start an SIP in this fund?
Yes, from Rs 100 a month, minimum six instalments.
Bandhan Contra Fund review: how is it different from a regular equity fund?
It screens for businesses the market has temporarily turned away from, rather than current favourites.
Is stamp duty charged on this investment?
Yes, 0.005% of the purchase value, the standard government rate on mutual fund purchases in India.
