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Bandhan Nifty Next 50 Index Fund NFO: Review, Date & NAV
Table of Contents
- Bandhan Nifty Next 50 Index Fund NFO: Overview
- Bandhan Nifty Next 50 Index Fund: Details
- Fund Objective
- Fund Overview
- How to Invest in the Scheme After the Closure of the NFO?
- Peers of Bandhan Nifty Next 50 Index Fund
- Risk Factors in Such Funds
- Past Performance of Nifty Next 50 Index Funds
- Bandhan Nifty Next 50 Index Fund - Fund Managers
- Conclusion
Bandhan Nifty Next 50 Index Fund NFO: Overview
Bandhan Mutual Fund has presented the Bandhan Nifty Next 50 Index Fund NFO which is an open-ended scheme that tracks the performance of the Index. The index is made up of additional 50 companies that follow the Nifty 50 ranked and provide large capital exposure with growth opportunities similar to mid and small caps.
The Nifty Next 50 Index is maintained and calculated using the Free Float Market Capitalisation-based weighting system. The index is also reconstituted in March and September every year. The Bandhan Nifty Next 50 Index Fund is meant for those investors who are seeking a large-cap strategy and are willing to accept a higher level of risk and expect higher returns.
Bandhan Nifty Next 50 Index Fund: Details
The NFO is priced at Rs.1000 and in multiples of Rs.1 thereafter. The asset allocation strategy is concentrated on investing 95-100% in securities that are part of the Nifty Next 50 Index, which includes index derivatives and stocks, and 0-5% in debt & Money Market instruments.
Fund Objective
The investment objective of the Bandhan Nifty Next 50 Index Fund is to replicate the Nifty Next 50 Index by investing in its securities in the same proportion and weighting, to generate returns before expenditures that, subject to tracking mistakes, mirror the index's overall return.
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Fund Overview
|
Start Date |
13 Feb 2025 |
|
End Date |
25 Feb 2025 |
|
Allotment Date/Subscription Date/Re-open Date |
03 Mar 2025 |
|
VRO Rating |
- |
|
Expense Ratio |
NA |
|
Exit Load |
0.25% if redeemed within 15 Days |
|
AUM |
Rs.137193.31 Cr. |
|
Lock-in |
NA |
|
Stamp Duty |
0.005% (From July 1st 2020) |
|
Benchmark(s) |
Nifty Next 50 Index |
|
Min. Investment |
Rs.1000 |
|
Risk |
Very High Risk |
Taxation
(Source: SID)
How to Invest in the Scheme After the Closure of the NFO?
If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on Mar 03, 2025, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Bandhan Nifty Next 50 Index Fund” or directly with the AMC or simply click the ‘Banner’ below.
Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:
|
Types of Instruments |
Minimum Allocation (% of Total Assets) |
Maximum Allocation (% of Total Assets) |
|
Securities that are part of the Nifty Next 50 Index, which includes index derivatives and stocks |
95 |
100 |
|
Debt & Money Market instruments. |
0 |
5 |
Peers of Bandhan Nifty Next 50 Index Fund
|
Scheme |
1Y Return |
AUM (Rs.) / Fund Size (Rs.) |
|
Motilal Oswal Nifty Next 50 Index Fund Regular |
2.97% |
Rs.297.39 Cr |
|
ICICI Prudential Nifty Next 50 Index Fund |
3.05% |
Rs.6,616.28 Cr |
Risk Factors in Such Funds
-
Corporate bonds may be extremely difficult to take off in times of heightened uncertainty. Even government securities would suffer from their hyper-volatility or their limited volumes in the market.
-
The scheme, however, may not perform in line with its underlying index due to fund expenses, corporate actions, regulatory policies, and market conditions, with this term as a tracking error.
-
Using derivatives, as such, will bring with it other risks, the dissimilarity being mispricing, improper valuation, and the failure of the counterparty to perform. These, by implication, tend to be different and more than traditional investments.
-
This occurs on account of failing to pay interest or repaying a fixed-income security's principal amount. Even in the absence of default, a degradation in the credit rating may work to decrease the price of that security.
Past Performance of Nifty Next 50 Index Funds
|
Scheme |
NAV (Rs.) |
Annualised Return |
Risk |
|
Motilal Oswal Nifty Next 50 Index Fund Regular |
20.49 |
2.97% |
Very High |
|
ICICI Prudential Nifty Next 50 Index Fund |
52.26 |
3.05% |
Very High |
Bandhan Nifty Next 50 Index Fund - Fund Managers
- Mr. Nemish Sheth.
Conclusion
The Bandhan Nifty Next 50 Index Fund is a suitable investment for those desiring exposure to large caps that may show growth levels comparable with mid and small-cap stocks. It closely tracks the Nifty Next 50 Index to provide long-term returns but also invites high risks through market changes and tracking errors. Thus, there is a need to understand your risk level before investing.
Disclaimer: Not a buy or sell recommendation. No investment advice is given. Future returns are not guaranteed by past returns. This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.
Frequently Asked Questions
13 Feb 2025 is the opening date of this NFO.
You can apply for NFO via online platforms such as AMC’s website, and channel partner website, by filling out an application form, and the mobile apps of Fund House.
NAV expands as Net assets Value.
