Bandhan Nifty Alpha 50 Index Fund Launch

Bandhan Mutual Fund has recently introduced the Bandhan Nifty Alpha 50 Index Fund. This open-ended index scheme tracks the Nifty Alpha 50 Index and offers investors an opportunity to invest in a well-diversified portfolio of stocks that have generated higher returns compared to the market over the past year. This FAQ will provide key information and details about this new fund offer.

1. What is the Bandhan Nifty Alpha 50 Index Fund?

The Bandhan Nifty Alpha 50 Index Fund is a mutual fund scheme offered by Bandhan Mutual Fund. It is designed to track the Nifty Alpha 50 Index, offering investors exposure to a diversified portfolio of stocks that have shown the potential for higher returns compared to the broader market.

2. When will the New Fund Offer (NFO) be open and closed?

The NFO for the Bandhan Nifty Alpha 50 Index Fund will open on Wednesday, October 25, 2023, and close on Monday, November 6, 2023. During this period, investors can subscribe to this fund.

3. What is the objective of the Nifty Alpha 50 Index Fund?

The primary goal of the Bandhan Nifty Alpha 50 Index Fund is to provide investors with the opportunity to generate outperformance by selecting stocks with specific factors that can potentially offer higher risk-adjusted returns compared to the broader market.

4. How has the Nifty Alpha 50 Index performed historically?

As of September 30, 2023, data from the National Stock Exchange (NSE) suggests that the Nifty Alpha 50 Index has outperformed both the Nifty 50 Index and the Nifty 500 Index, delivering an alpha of approximately 5% over these broad-based indices. It's important to note that this outperformance has come with slightly higher volatility.

5. How can investors invest in the Bandhan Nifty Alpha 50 Index Fund?

Investors can invest in this fund through licensed mutual fund distributors, online platforms, and they can also invest directly in the fund. This provides flexibility for investors to choose the most convenient and suitable method for their investment.

6. Who is Bandhan AMC (Asset Management Company)?

Bandhan AMC, formerly known as IDFC Asset Management Company Limited, was established in 2000. It focuses on assisting savers in becoming investors and wealth creation. The company offers various investment products across Mutual Funds and Portfolio Management Services (PMS), managed by an experienced investment team with the aim of providing performance consistent with the product’s objectives.

Conclusion: The Bandhan Nifty Alpha 50 Index Fund offers investors the opportunity to access a diversified portfolio of stocks that have historically outperformed broader market indices. Investors can participate in this fund by subscribing to the New Fund Offer (NFO), which is open from October 25, 2023, to November 6, 2023, through licensed mutual fund distributors, online platforms, or by investing directly. This fund is intended for those looking to enhance the growth potential of their portfolio with an aggressive investment strategy.

Please note that investing in mutual funds involves risks, and it's essential to carefully read the fund's offer documents and consult with financial advisors before making investment decisions.