Bandhan MF Launches Nifty Next 50 Index Fund for Growth Seekers
Bandhan Mutual Fund has launched the Bandhan Nifty Next 50 Index Fund, which is an open-ended scheme that will follow the Nifty Next 50 Index. The new fund offer (NFO) is open for subscription on Thursday and will continue until February 25.
The index fund will offer investors exposure to the next cohort of potential leaders in the market because the index contains 50 companies ranked just below the Nifty 50.
Bandhan MF Nifty Next 50 Index Fund
These stocks, although large caps by definition, bear similar features to mid and small-cap stocks with high growth potential.
The Nifty Next 50 Index has traditionally acted as a launching pad for upstart market leaders, with 24 stocks from the index migrating to the Nifty 50 in the last nine years.
The index has also shown the capability of outperforming the Nifty 50 through several market cycles.
With the recent market correction having brought the index down by more than 20% and being below its five-year average, historical trends show that such periods have more often than not resulted in robust recoveries.
The Bandhan Nifty Next 50 Index Fund offers investors the chance to partake in the long-term growth opportunity in this space.
Bandhan MF Nifty Next 50 Index Fund Details and Investment Strategy
The Nifty Next 50 Index is rebalanced every half year in the months of March and September and uses free float market capitalisation-based weightage methodology.
The scheme would seek to replicate the Nifty Next 50 Index by holding securities in identical proportion, hoping to deliver the returns before costs in line with the total return of the index.
The company has, however, made it clear that no assurance can be given that the objectives of the scheme will be achieved.
- Scheme Type: Open-ended
- Category: Index Fund
- Exit Load: 0.25% if redeemed within 15 days from the allotment date; no exit load if redeemed after 15 days
- Minimum Investment: Rs.1,000 and in multiples of Re 1 thereafter
- Fund Manager: Nemish Sheth
Who Should Consider this Index Fund?
The Bandhan Nifty Next 50 Index Fund is for investors who want a large-cap investment approach with greater risk and return opportunities. The fund provides diversification across different sectors, such as consumer discretionary, FMCG, and IT, and is for investors who seek long-term wealth creation.
Other Initiatives by Bandhan Life Insurance
Apart from the launch of the mutual fund, Bandhan Life Insurance has launched the Flexi Cap Fund, which is tied to Bandhan Life iInvest II and iInvest Advantage ULIPs. The fund is available for subscription till February 24, with a first-day NAV of Rs.10.
Bandhan Life’s ULIP plans, iInvest II and iInvest Advantage, provide returns linked to the market along with life cover for up to 20 times the annual premium.
With the minimum monthly premiums of Rs.3,000, the schemes enable investors to tailor their investments according to their financial aspirations. Policyholders can also receive partial withdrawals from the fifth policy year, helping to provide liquidity and flexibility.
Through these new products, Bandhan plans to give investors diversified options for wealth generation as well as financial security.
