Bandhan Large Cap Fund Celebrating Two Decades of Stability and Growth

Mutual Funds: As Bandhan Large Cap Fund celebrates its 20-year anniversary, the fund reaches a milestone defined by disciplined, long-term wealth creation rooted in stability and quality. Throughout two decades, the fund has successfully navigated various market cycles, including periods of expansion, correction, and structural change, while remaining committed to investing in fundamentally strong large-cap businesses.

The Strategic Value of Large Caps:
Large-cap companies serve as the backbone of well-structured portfolios due to their scale, pricing power, governance standards, and consistent cash flow generation. In the current market context, large caps offer significant appeal as they are trading at a discount compared to their five-year average price-to-earnings multiples. As of May 2026, large-cap indices like the Nifty 100 are trading at 21.1, which represents a discount of approximately 13.98% compared to their five-year average of 24.5. This relative valuation comfort, combined with the fact that mid and small-cap indices are trading at higher levels relative to their historical averages, positions large caps as an attractive option for balancing risk and return. Furthermore, large caps provide a “cushion” during market stress, demonstrating stronger downside resilience with lower average and worst drawdowns than mid and small-cap segments.

A Disciplined Investment Framework:
Bandhan Large Cap Fund employs a rigorous approach to ensure portfolio quality through the following structures:

BMV Framework: The fund prioritizes three pillars:

Business: Investing in sector leaders with durable competitive advantages and strong balance sheets.

Management: Focusing on integrity, quality, and execution capabilities of shareholder-aligned leadership teams.

Valuation: Maintaining a disciplined approach to acquire high-quality businesses at reasonable prices.

Five-Parameter Selection Framework: To refine stock selection, the fund evaluates:

• Normalized Return on Equity (RoE) to assess sustainable financial efficiency.
• Long-term growth potential and durable growth drivers.
• Capital allocation ability and governance standards.
• Management execution and operational consistency.
• Earnings predictability based on industry and regulatory context.

Flexibility and Long-Term Vision:
While maintaining a primary orientation toward large caps, the fund retains the flexibility to allocate up to 20% of its portfolio to mid and small-cap stocks. This strategic allowance enables the fund to participate in emerging growth opportunities when valuations are favorable, all while preserving overall portfolio stability. By prioritizing this patient, structured approach over short-term market noise, the Bandhan Large Cap Fund continues to provide a compelling option for investors seeking core portfolio stability while participating in India’s long-term growth story.