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NFO alert: Bandhan Mutual Fund launches Bandhan Nifty Bank Index Fund
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3 min read | Updated on August 08, 2024, 19:12 IST
SUMMARY
Bandhan Mutual Fund introduces the Bandhan Nifty Bank Index Fund, aiming to mirror the Nifty Bank Index's performance by investing in its constituents. The NFO is open from August 8 to August 22, 2024, with a minimum investment of ₹1000.
NFO alert: Bandhan Mutual Fund launches Bandhan Nifty Bank Index Fund
Bandhan Nifty Bank Index Fund is an open-ended index fund offered by Bandhan Mutual Fund. The investment objective of the scheme is to replicate the Nifty Bank Index by investing in securities of the Nifty Bank Index in the same proportion. The new fund launch date is August 8, 2024, and the new fund offer closure date is August 22, 2024. The minimum subscription amount is ₹1000 and there is a load of 0.25% if redeemed on or before 15 days from the allotment date.
Bandhan Nifty Bank Index Fund
The investment objective of the Bandhan Nifty Bank Index Fund is to replicate the Nifty Bank Index by investing in securities of the Nifty Bank Index in the same proportion/weightage to provide returns before expenses that track the total return of the Nifty Bank Index, subject to tracking errors. However, there is no assurance or guarantee that the objectives of the scheme will be realised and the scheme does not assure or guarantee any returns.
Risk-o-meter:
Funds Allocation
| Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) |
|---|---|---|
| Securities belonging to the Nifty Bank Index (including stock and index derivatives) | 95 | 100 |
| Debt & Money Market Instruments & Mutual Fund | 0 | 5 |
Who should invest in this fund?
This NFO of Bandhan Nifty Bank Index Fund is suitable for investors who are seeking to create wealth over the long term and want investment in equity and equity-related instruments belonging to the Nifty Bank Index.
Benchmark
The performance of the Bandhan Nifty Bank Index Fund will be benchmarked to the performance of the Nifty Bank Index.
Peer Fund Schemes
| Fund name | Asset Under Management (Crore) | 1-Year Return (%) | Expense Ratio (%) |
|---|---|---|---|
| Motilal Oswal Nifty Bank Index Fund | 608 | 11.64 | 0.99 |
| Navi Nifty Bank Index Fund | 581 | 11.7 | 0.79 |
| ICICI Prudential Nifty Bank Index Fund | 454 | 11.83 | 0.87 |
| Nippon India ETF Nifty Bank BeES | 6,990 | 12.57 | 0.19 |
| Kotak Nifty Bank ETF | 6,182 | 12.57 | 0.16 |
Who Manages the Scheme?
Nemish Sheth – Associate Vice President Equity (AUM - ₹24,920.30 crore, Schemes – 24)
Nemish Sheth joined the Equity Fund Management team of Bandhan AMC on November 01, 2021, as Dealer - Equity and Fund Manager. He was earlier associated with Nippon Life India Asset Management Ltd. as a Dealer from December 2018 to August 2021, handling the execution of Equity, Arbitrage and ETF trades. Before this, he was also associated with ICICI Prudential Asset Management Company Ltd. as a Dealer from August 2011 to December 2018, handling the execution of Equity, Arbitrage and ETF trades. Currently, he holds 12 years of experience.
Conclusion
The Bandhan Nifty Bank Index Fund offers investors a chance to track the Nifty Bank Index closely. It provides a low-cost, focused investment in the banking sector.
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