Summary: Bandhan Value Fund, formerly Bandhan Sterling Value Fund, was renamed effective 13 June 2025 without creating a new scheme or altering its investment history. The open-ended equity fund follows a value investment strategy, allocating 65%–100% of assets to equity and equity-related instruments, with up to 35% in permitted non-equity assets. Its benchmarks are BSE 500 TRI and BSE 400 MidSmallCap TRI, while its SEBI Riskometer classification is Very High. Investors can choose Direct or Regular Plans, which share the same portfolio but differ in expenses. Redemptions within 365 days allow 10% of the investment without exit load; the balance attracts 1%, while later redemptions carry no exit load. Under applicable equity mutual fund taxation, qualifying short-term capital gains attract 20% tax, while qualifying long-term gains exceeding the aggregate ₹1.25 lakh exemption attract 12.5%, subject to statutory conditions, surcharge and cess. The article examines investment objectives, portfolio limits, benchmarks, expenses, liquidity, taxation and investor documentation. Investors should review the latest Scheme Information Document, factsheet, expense disclosures and exit-load provisions before investing. Past performance does not guarantee future returns, and suitability depends on individual risk tolerance, financial goals and investment horizon.
- Current Scheme Identity and the 2025 Name Change
- Mandate and Portfolio Construction Boundaries
- Value strategy is an active judgment, not an index rule
- Asset-allocation limits define the permitted range
- Benchmarks, Riskometer and Manager Disclosures
- Plans, Minimums, Expenses and Exit Load
- Direct and Regular plans share the portfolio
- TER must be checked as a dated disclosure
- One-year exit-load window with a limited free slice
- Liquidity, Valuation and Investor-Service Process
- Indian Tax Treatment for an Equity-Oriented Fund
- Document Set to Review Before a Transaction
- Frequently Asked Questions
- Is Bandhan Sterling Value Fund a different scheme from Bandhan Value Fund?
- What is the fund’s minimum equity allocation?
- Which benchmarks does the scheme use?
- What is the current exit-load rule?
- Does the Direct Plan hold different stocks from the Regular Plan?
- How are redemptions taxed for a resident investor?
- Does the Very High Riskometer mean the fund will lose money?
- Key Takeaways
Current Scheme Identity and the 2025 Name Change
The ledger candidate used the historical name Bandhan Sterling Value Fund. The official current Scheme Information Document uses Bandhan Value Fund and states that the name change took effect on 13 June 2025. The rename did not create a second fund or reset its history. The current scheme code is BNDN/O/E/VAF/08/01/0016, the AMC is Bandhan AMC Limited and the trustee is Bandhan Mutual Fund Trustee Limited. Duplicate checking must therefore treat both names as the same underlying scheme and combine earlier IDFC and Bandhan name references when reviewing historical records.
| Identity field | Current verified position | Editorial consequence |
|---|---|---|
| Current name | Bandhan Value Fund | Use this name in title and current facts |
| Former name | Bandhan Sterling Value Fund | Treat as the same scheme, not a separate article topic |
| Effective date | 13 June 2025 | Do not reset inception or performance history |
| Category | Open-ended equity Value Fund | Value style can lag broad markets for long periods |
| Scheme code | BNDN/O/E/VAF/08/01/0016 | Use official code to distinguish the scheme |
Mandate and Portfolio Construction Boundaries
Value strategy is an active judgment, not an index rule
The scheme objective is to seek capital appreciation from a diversified portfolio of equity and equity-related instruments by following a value investment strategy, without assurance that the objective will be realised. The SID says the manager identifies undervalued companies through a systematic process that considers industry growth potential and interaction with company management. “Undervalued” is not an observable guarantee: a security may remain cheap because earnings, balance-sheet quality, governance or industry economics deteriorate. The scheme can therefore underperform a momentum-led or concentrated market even when its stated process is followed.
Asset-allocation limits define the permitted range
The current SID sets 65%–100% of total assets for equity and equity-related instruments. Debt securities, money-market instruments, government securities, securitised debt, margin money or fixed deposits and units of REITs and InvITs may together occupy 0%–35%. These are outer limits, not a promise of a fixed daily mix. Cash deployment, redemptions, derivatives, valuation changes and security selection can move the actual portfolio. Investors should use the latest monthly portfolio and factsheet for dated holdings rather than copy an undated third-party list.
| Portfolio bucket | SID range | What to monitor in monthly disclosure |
|---|---|---|
| Equity and equity-related | 65%–100% | Market-cap mix, sector concentration, top holdings and turnover |
| Debt, money market and related permitted assets | 0%–35% | Credit quality, maturity, liquidity and cash deployment |
| REITs and InvITs | Within the non-equity bucket | Issuer concentration, distribution sensitivity and liquidity |
| Derivatives | Within regulatory and scheme limits | Hedging versus exposure creation and margin requirements |
Benchmarks, Riskometer and Manager Disclosures
The Tier 1 benchmark is BSE 500 TRI, while the Tier 2 benchmark is BSE 400 MidSmallCap TRI. A total-return index includes reinvested distributions and is therefore more appropriate than a price-only index for performance comparison. The SID explains that the Tier 2 index covers the companies within the BSE 500 that are outside the BSE 100 and is relevant because the fund may look for value opportunities in mid- and small-cap segments. Neither benchmark restricts the manager to index weights.
The official SID marks both the scheme and benchmark at Very High risk. That label is not a short-term loss forecast and does not compare the scheme with every other investment; it communicates the risk classification under the prescribed methodology. The SID names Daylynn Pinto for equity management, with separately identified managers for overseas investments. Manager assignments can change through addenda, so a dated factsheet or addendum should be checked before publication or investment.
Plans, Minimums, Expenses and Exit Load
Direct and Regular plans share the portfolio
Direct and Regular plans invest in the same scheme portfolio but have different expense structures. The Direct Plan excludes distributor commission and must have lower expenses for the comparable option. Growth and income-distribution-cum-capital-withdrawal choices affect how distributable amounts are handled; an IDCW payment is not an assured return and can include capital. The current SID lists ₹1,000 as the initial and additional purchase amount, SIP from ₹100 with at least six instalments, SWP from ₹200 and STP-in from ₹500, subject to current transaction rules.
TER must be checked as a dated disclosure
The SID describes the regulatory ceiling and directs investors to the AMC’s daily TER page for the actual current expense ratio. It would be misleading to freeze a single ratio in a long-lived guide because TER may change with asset size, plan and permitted charges. GST on investment-management and advisory fees is addressed within the regulatory expense framework; GST treatment of other scheme expenses and exit load is also dealt with in the SID. An investor should compare the dated Direct and Regular TER rather than assume a quoted figure remains current.
One-year exit-load window with a limited free slice
For units redeemed or switched within 365 days from allotment, up to 10% of the investment is exempt from exit load and the remaining amount attracts 1% of applicable NAV. Redemption or switch-out after 365 days has nil exit load. Each allotment can have its own ageing, which matters for SIP instalments. A switch to another scheme is a redemption from the source scheme and may also be a taxable transfer even if no cash reaches the bank account.
Liquidity, Valuation and Investor-Service Process
The scheme is open-ended and units may ordinarily be purchased or redeemed on business days at applicable NAV, subject to cut-off, funds-availability, load and exceptional restrictions. The SID states that the units are not presently listed on a stock exchange. NAV is declared for each business day; a redemption price reflects applicable NAV after exit load. Market disruption, large redemptions, settlement problems or restrictions permitted by regulation can affect liquidity. Nomination, bank mandate, KYC, FATCA/CRS status, contact details and transmission documents should be kept current.
Indian Tax Treatment for an Equity-Oriented Fund
Because the scheme mandate requires at least 65% in equity and equity-related instruments, it is designed to operate as an equity-oriented fund, but statutory classification should be confirmed for the relevant year and transaction. Under the Income-tax Act, 2025, section 196 applies a 20% rate to qualifying short-term capital gains on units of an equity-oriented fund when the STT condition is met. Units held for more than 12 months are long-term. Section 198 applies 12.5% to qualifying long-term capital gains exceeding the aggregate ₹1.25 lakh threshold, subject to STT and other conditions. Applicable surcharge and cess are additional.
A switch, systematic withdrawal, transfer between plans in circumstances treated as redemption, or redemption to meet a goal can create a taxable event. Exit load reduces proceeds but tax computation follows the statute and evidence. IDCW is taxed according to the investor’s applicable income rules and may attract withholding when conditions are met. Non-residents, businesses, minors, trusts and investors with brought-forward losses can have different results. Keep allotment statements, CAS, bank records, capital-gains statements and evidence of STT.
Document Set to Review Before a Transaction
- Current SID and KIM for mandate, risks, minimums, plans and load structure.
- Latest monthly factsheet and portfolio disclosure for dated holdings, sectors, AUM, managers and Riskometer.
- Daily TER disclosure for the exact Direct or Regular option under consideration.
- Latest addenda for manager, benchmark, load, transaction, valuation or fundamental-attribute changes.
- Income-tax provisions and the investor’s own capital-gains records; do not infer tax solely from the scheme label.
Frequently Asked Questions
Is Bandhan Sterling Value Fund a different scheme from Bandhan Value Fund?
No. The official SID states that Bandhan Sterling Value Fund was renamed Bandhan Value Fund with effect from 13 June 2025. It is the same underlying scheme and history.
What is the fund’s minimum equity allocation?
The current SID specifies 65% of total assets as the minimum for equity and equity-related instruments, with a maximum of 100%.
Which benchmarks does the scheme use?
The Tier 1 benchmark is BSE 500 TRI and the Tier 2 benchmark is BSE 400 MidSmallCap TRI. Both are total-return indices.
What is the current exit-load rule?
Within 365 days, up to 10% of the investment may be redeemed or switched without load and the remainder attracts 1% of applicable NAV. After 365 days the exit load is nil, subject to current documents.
Does the Direct Plan hold different stocks from the Regular Plan?
No. Both plans participate in the same scheme portfolio. Their expense structures differ because the Direct Plan excludes distribution commission.
How are redemptions taxed for a resident investor?
Qualifying short-term gains on an equity-oriented fund are taxed at 20% and qualifying long-term gains above the aggregate ₹1.25 lakh threshold at 12.5%, plus applicable surcharge and cess, subject to statutory conditions.
Does the Very High Riskometer mean the fund will lose money?
It communicates a prescribed risk classification, not a prediction. Actual outcomes depend on portfolio holdings, market conditions, valuation, costs and the investor’s holding period.
Key Takeaways
- Use Bandhan Value Fund as the current name and treat Sterling Value Fund references as the same underlying scheme.
- The mandate permits 65%–100% equity exposure and follows an active value strategy across a diversified portfolio.
- Current TER, holdings, AUM and manager information should be taken from dated AMC disclosures, not frozen third-party snapshots.
- Exit load, taxation and suitability depend on each allotment and investor’s facts; neither the rename nor a benchmark guarantees performance.
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Disclaimer: This article is an educational, source-based profile of Bandhan Value Fund, formerly Bandhan Sterling Value Fund, prepared from official AMC, AMFI, SEBI and Income-tax materials reviewed for publication on 1 November 2026. It is not investment, distribution, legal, tax, accounting or financial-planning advice and is not an offer, solicitation, ranking, rating or recommendation to purchase, hold, switch or redeem any plan or option. The scheme name, manager, benchmark, portfolio, AUM, Riskometer, TER, load, minimum transaction amount, cut-off, valuation, taxation and service process can change through later factsheets, addenda, regulation or law. Value investing can underperform for extended periods; equity, mid-cap and small-cap exposure can be volatile; debt and money-market holdings carry interest-rate, credit and liquidity risks; and an open-ended label does not guarantee immediate redemption under every market condition. Direct and Regular plans have the same portfolio but different costs, and an IDCW distribution is neither assured nor equivalent to investment profit. Tax results depend on the investor’s residence, status, holding period, STT, acquisition history, aggregate gains, switches, losses, surcharge, cess and other income. Readers must check the current SID, KIM, latest portfolio, daily TER, addenda and their own consolidated account statement immediately before acting and should consult a SEBI-registered investment adviser and qualified tax professional for personal circumstances. TaxGuru accepts no responsibility for market loss, underperformance, load, expense change, tax liability, incorrect scheme selection, delayed redemption, service issue, document error or any other consequence arising from reliance on this article or a later-changed disclosure.
