Bandhan Nifty Total Market Index Fund NFO: Review, Date & NAV

Introduction

India's stock market, which is now rated fourth globally, is a favorable investment opportunity and a sign of a robust economy. With their guaranteed diversification, comparatively low risk, and easy portfolio administration, mutual funds are a smart starting point. But picking the right mutual fund might be challenging. This is made easier by investing in the Nifty Total Market Index, which covers the entire market and may help you benefit from India's economic expansion.

Do you include yourself among those who want to invest in mutual funds and who are keen to show yourself as a leader in this market? Or do you want to invest your money to make it big?

We're back with another thought-provoking and informative blog post that can help you with your next financial step. So, this time, we've devised the business concept of the 'Bandhan Nifty Total Market Index Fund'.

This article will describe what is included in the fund program and how it works.

 

Everything You Need to Know About Bandhan Nifty Total Market Index Fund - NFO

The Bandhan Nifty Total Market Index Fund, introduced by Bandhan Mutual Fund, invests in 750 stocks from large, mid, small, and micro-cap firms. The fund will begin investing on June 24, 2024, aiming at minimizing risk through market-wide diversification. Rs.1,000 is the minimum investment, and withdrawals made within 15 days will incur a minor cost. 

To learn about the fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

 

 

Bandhan Nifty Total Market Index Fund - NFO Overview

The investment period for the Scheme is set for June 24, 2024, to July 05, 2024. The scheme is a very high-risk scheme. There is no confirmation that the plan's speculation objective will be met. The scheme will invest in Securities included in the Nifty Total Market Index, including derivatives for stocks and indexes and the Debt & Money Market with an exit load of 0.25% if withdrawn in 15 days.

 

Fund Overview

The minimum subscription amount is set at Rs.1000 with a 0.25% exit load.

Start Date	24 June 2024
End Date	05 July 2024
VRO rating	-
Expense ratio	NA
Exit load	0.25% if redeemed within 15 days and Nil after 15 days.
AUM (Fund size)	NA
Lock-in	NA
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Performance of Nifty Total Market TRI.
Min. Investment	Rs.1000
Risk	Very High
Short-term capital gains (STCG)	For less than 3 years, as per Tax Slab
Long-term capital gains (LTCG)	For more than 3 years, 20% is applicable.

 

 

The Objective of the Fund

The Scheme intends to The Bandhan Nifty Total Market Index Fund seeks to provide returns before expenses that track the overall return of the Nifty Total Market Index, subject to tracking errors by investing in Nifty Total Market Index securities in the same proportion and weightage. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be achieved.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Securities included in the Nifty Total Market Index, including derivatives for stocks and indexes	95	100	Very High
Debt & Money Market instruments	0	5	Low

 

 

Peers of Bandhan Nifty Total Market Index Fund

Index / Debt Funds	1Y Return	AUM (Cr)
ICICI Prudential India Equity FOF Direct	48.17%	113.25
JM Flexicap Fund Direct Plan-Growth	69.16%	2,472.06
HDFC Retirement Savings Fund Equity Plan Direct-Growth	41.26%	5,159.41

 

Risk Factors in Such Funds

• The Scheme invests in the securities included in its Underlying indexes regardless of their investing merit to track the corresponding indices. A general downturn in the Indian markets could have an impact on the Scheme.

• The possibility of trade failures could lead to the scheme's inability to purchase the security at the required price to replicate the index.

• Since the scheme is open-ended, it may have enough cash or cash equivalents to cover ongoing redemptions. Conditions present in the securities market, including but not limited to securities' circuit filters, liquidity, and price volatility, may prevent the scheme from buying or selling the desired quantity of securities.

• Reinvestment risk may be associated with investments in fixed-income instruments since interest rates may vary from the bond's original coupon on interest or maturity due dates. As a result, the proceeds might be invested at a reduced rate.

 

Past Performance of Index / Debt / ETF Funds 

Index / Debt Funds	NAV (Rs)	Annualized Return (1Y)	Return/Risk
Franklin India NSE Nifty 50 Index Fund	197.23	26.87%	Very High Risk
Nippon India Nifty Smallcap 250 Index Fund	33.896	63.96%	Very High Risk
SBI Nifty Smallcap 250 Index Fund	18.58	64.37%	Very High Risk

 

 

Bandhan Nifty Total Market Index Fund NFO - Who can invest?

This fund is ideal for those who want to build long-term wealth and seeking investment in Nifty Total Market Index-related equity and equity-related instruments.

 

Bandhan Nifty Total Market Index Fund NFO - Growth Fund Managers

• Mr. Nemish Sheth

 

Conclusion

Bandhan Nifty Total Market Index Fund is offering a promising investment opportunity through its scheme. The scheme is a very high-risk scheme. The achievement of the scheme's investment objective cannot be guaranteed. Always assess your Financial Goals, Risk tolerance, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.