NFO Alert: Bandhan Mutual Fund launches New Index fund
The Bandhan Mutual Fund has recently announced the launch of New Index Fund. The New Index Fund namely Bandhan Nifty Alpha Low Volatility 30 Index Fund, is an open-ended scheme which will track Nifty Alpha Low Volatility 30 Index.
The new fund offer of the mutual fund scheme will open for subscription on January 8, 2025 and will close on January 20, 2025. For continuous sale and repurchase, the scheme will reopen on January 28, 2025.
The scheme’s investment objective is to replicate the Nifty Alpha Low Volatility 30 Index via investing in Nifty Alpha Low Volatility 30 Index securities in the exact same proportion or weightage, with the goal of providing returns before expenses that track the total return of the Nifty Alpha Low Volatility 30 Index, with potential tracking errors.
The said scheme will be benchmarked against Nifty Alpha Low Volatility 30 Index. The Bandhan Nifty Alpha Low Volatility 30 Index Fund will be managed by experienced professional Nemish Sheth.
An exit load of 0.25% will be applicable in case of shares redeemed on or before 15 days from the allotment date. There will be no exit load if redeemed after 15 days from the allotment date.
The minimum amount for lumpsum investment is Rs.1,000 and in multiples of Re 1 thereafter. For SIP investment, a person can start with minimum amount of Rs.100 and in multiples of Re 1 thereafter with a minimum of 6 instalments. For STP, the minimum amount is Rs.500 and any amount thereafter.
This index fund will invest 95-100% in Nifty Alpha Low Volatility 30 Index’s securities (including stocks and index derivatives) and investment in debt and money market instruments will be 0-5%.
This fund scheme would be managed passively, with investments in stocks which is proportional to their weights in the Nifty Alpha Low Volatility 30 Index.
The investors who are seeking to create wealth and can invest for long term, this scheme is suitable for them. Also, those investors who want to invest in equity and equity-related instruments belonging to the Nifty Alpha Low Volatility 30 Index, can opt this fund for investment.
