Publish Date:
Bandhan Mutual Fund launches – Bandhan Nifty Smallcap 250 Index Fund
It is an open-ended scheme tracking Nifty Smallcap 250 Index.
Accordingly, the investment objective of the Scheme is to replicate the Nifty Smallcap 250 Index by investing in securities of the Nifty Smallcap 250 Index in the same proportion / weightage with an aim to provide returns before expenses that tracks the total return of Nifty Smallcap 250 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.
[Read: 5 Best Small Cap Funds for 2024 - Top Performing Small Cap Mutual Funds in India]
Under normal circumstances, Bandhan Nifty Smallcap 250 Index Fund will hold an allocation of 95% to 100% in Securities belonging to the Nifty Smallcap 250 Index (including stock & index derivatives, and 0% to 5% in Debt & Money Market instruments.
As per the Scheme Information Document, Bandhan Nifty Smallcap 250 Index Fund will be managed passively with investments in stocks in a proportion to the weights of these stocks in the Nifty Smallcap 250 Index.
The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions from the Scheme.
[Read: Want to Invest in Small cap Funds? Manage the Risk and Reward Well]
Bandhan Nifty Smallcap 250 Index Fund’s performance will be benchmarked against Nifty Smallcap 250 TRI
The scheme will be managed by Mr Nemish Sheth.
The NFO opens for subscription on December 12, 2023 and closes on December 19, 2023. The schemes will reopen for continuous sale and repurchase Within five business days of allotment date.
The minimum subscription amount is Rs 1,000/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).