Bandhan MF launches BSE Healthcare Index Fund; A Good Antidote for Your Portfolio?
Bandhan Mutual Fund has launched a new avenue for investment, the Bandhan BSE Healthcare Index Fund. This will be an open-ended scheme aimed at helping people gain exposure to the fast-growing healthcare sector in India.
The NFO for the scheme opened on August 21, 2024, and shall close on September 3, 2024.
This will be an index fund investing in the securities that form part of the BSE Healthcare Index. It will include companies engaged in the healthcare industry, from pharmaceuticals and hospitals to diagnostics, biotechnology and medical equipment providers.
According to Vishal Kapoor, Chief Executive Officer of Bandhan Asset Management Company, prospects are bright for the healthcare sector. He said that this sector has especially shown moxie and innovative spirit since the eruption of the COVID-19 pandemic.
“India is known globally for its vaccine manufacturing, generic drugs and medical tourism. Increasing lifestyle diseases, ageing population and increasing access to healthcare are some of the strong reasons behind the growth in the healthcare sector in India,” Kapoor said.
He said that the Bandhan BSE Healthcare Index Fund provides an opportunity for investors to reap benefits from the growth of the entire healthcare industry.
The BSE Healthcare Index has been known to deliver better returns vis-à-vis broader market indices like the Nifty 50. This makes the fund an attractive long-term growth solution for investors.
Should You Invest?
It is, however, important to know that this fund is best for those who are ready and willing to take on higher risks and want to diversify their investments.
As it is a sector-focused fund, the associated risks are there with this fund. While there is a huge potential for growth in India’s healthcare sector due to growing demand and technological support, there are other factors impacting this sector adversely as well, such as regulatory changes, pricing pressure, and global competition.
If you can afford to take on more risk to aim for higher returns from a growth sector, then you may consider this fund for investment.
