Publish Date:
Bandhan Mutual Fund introduces – Bandhan Nifty Alpha 50 Index Fund.
It is an open-ended scheme tracking Nifty Alpha 50 Index.
Accordingly, the investment objective of the Scheme is to replicate the Nifty Alpha 50 Index by investing in securities of the Nifty Alpha 50 Index in the same proportion / weightage with an aim to provide returns before expenses that tracks the total return of Nifty Alpha 50 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: Are Your Equity Mutual Funds Generating Alpha Returns?]
Under normal circumstances, Bandhan Nifty Alpha 50 Index Fund will hold an allocation of 95% to 100% in Securities belonging to the Nifty Alpha 50 Index and 0% to 5% in Debt & Money Market instruments.
As per the Scheme Information Document, Bandhan Nifty Alpha 50 Index Fund will be managed passively with investments in stocks in a proportion to the weights of these stocks in the Nifty Alpha 50 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.
Bandhan Nifty Alpha 50 Index Fund’s performance will be benchmarked against Nifty Alpha 50 TRI
The scheme will be managed by Mr Nemish Sheth.
The NFO opens for subscription on October 25, 2023 and closes on November 06, 2023. The schemes will reopen for continuous sale and repurchase on 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).