Bandhan Mutual Fund introduces India’s second Nifty Total Market Index Fund

Bandhan Mutual Fund launched a new fund called Bandhan Nifty Total Market Index Fund. This fund aims to track the performance of the entire Indian stock market (almost 95%!) by investing in a massive basket of 750 stocks from large, mid, small, and even micro-cap companies. That way, you don't have to pick which sectors will do well, you just invest in all of them!

The idea is to minimize risk by diversifying across the market. There is no guarantee how it will perform, but it starts investing on June 24, 2024, and you can invest until July 5. Just keep in mind there is a small fee if you pull your money out within 15 days of buying in. The minimum investment amount required is ₹1000.

What is the Total Market Index Fund?

The Nifty Total Market Index covers the entire equity market (95%) by including stocks from all sectors and sizes: Large, Mid, Small, and Micro caps. Diversifying across sizes and sectors helps reduce risk as opposed to focusing on specific sectors or stocks. Each stock is weighted based on its market capitalization, with larger companies having a greater impact on the index’s performance.

This kind of fund needs some attention from investors because India's booming stock market, currently ranked fourth worldwide, reflects a strong economy and is an appealing investment option. Mutual Funds offer a wise entry point, ensuring diversification, relatively lower risk, and simple portfolio management. However, selecting the right mutual fund can be complex.

Investing in the Nifty Total Market Index simplifies this, covering the entire market, and potentially tapping into India’s economic growth.

Bandhan Nifty Total Market Index Fund

The investment objective of the Bandhan Nifty Total Market Index Fund is to replicate the Nifty Total Market Index by investing in securities of the Nifty Total Market Index in the same proportion/weightage to provide returns before expenses that track the total return of the Nifty Total Market Index, subject to tracking errors. However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns.

Benchmark

Risk-o-meter:

Funds Allocation

Who Should Invest?

If you are considering investing in equity or equity-related Nifty Total Market Index, then the Bandhan Nifty Total Market Index Fund NFO would be very helpful for your goals.

Peer Mutual Fund Schemes

Who Manages the Scheme?

Conclusion

Bandhan Nifty Total Market Index Fund offers investors a diversified, low-risk entry point into India’s robust stock market. Managed by experienced fund manager Nemish Sheth, this fund is designed to track the Nifty Total Market Index, providing a balanced exposure to the entire market and tapping into India’s economic growth potential.