Bandhan Small Cap Fund implemented significant portfolio changes in July, adding 15 new stocks and exiting 9 existing holdings, according to its latest monthly portfolio disclosure. The fund also increased its holdings in 82 companies and reduced its stake in 39 others during the month. These strategic moves came as the fund attracted ₹2,003 crore in July, marking the highest inflow among small-cap mutual fund schemes during the month. Managed by Manish Gunwani, the fund's assets under management rose to ₹31,103 crore at the end of July from ₹28,466 crore in June.
HDFC Bank emerged as one of the largest portfolio increases, with the fund raising its holding from 20.2 lakh shares in June to 39 lakh shares in July, representing a 93% increase. The bank's allocation rose from 0.57% to 0.94%. AWL Agri Business saw a 70% increase in share count, from 92.31 lakh to 1.57 crore, with its portfolio weight increasing from 0.60% to 0.96%. Sterlite Technologies recorded the most dramatic increase at 208%, taking the holding from 9.85 lakh to 30.31 lakh shares. Other notable increases included Cholamandalam Financial Holdings (42%), Godawari Power & Ispat (33%), and Electronics Mart India (19%).
The fund reduced its shareholding in 39 existing companies during July. P N Gadgil Jewellers saw one of the largest reductions, with the fund cutting its holding from 27.21 lakh shares to 10.02 lakh shares, representing a 63% decline. The company's portfolio allocation fell from 0.51% to 0.22%. Senco Gold saw its holding fall by 28%, while Amir Chand Jagdish Kumar's share count declined by 35%. Other notable reductions included Steel Strips Wheels (64%), Amir Chand Jagdish Kumar (35%), and Senco Gold (28%).
The fund added 15 new equity stocks during July, with Just Dial being the largest fresh position worth approximately ₹79.8 crore at month-end. Jammu & Kashmir Bank followed at ₹58.5 crore, while Indo-MIM, ideaForge Technology, and UTI Asset Management Company were among the larger new positions. Other new positions included L.T. Elevator, Torrent Pharmaceuticals, Laser Power and Infra, Knack Packaging, Kusumgar, City Union Bank, and Kamdhenu. The fund completely exited 9 stocks namely JB Chemicals & Pharmaceuticals, Triveni Engineering & Industries, Premier Energies, Karur Vysya Bank, Aster DM Healthcare, Bluestone Jewellery and Lifestyle, Powerica, JSW Infrastructure, and Vedanta Oil and Gas.
Bandhan Small Cap Fund has maintained a strong longer-term performance record, particularly over the three- and five-year periods. The fund has delivered 27.16% annualised returns over three years and 20.29% over five years, placing it first and third, respectively, among small-cap funds in its category. Over the past year, it gained 13.87%, ahead of the BSE 250 SmallCap TRI's 8.91% return, although it trailed the small-cap category average of 14.78%. So far in 2026, the fund is up 11.40%, compared with 8.66% for its benchmark.
