Bandhan Nifty 500 Value 50 Index Fund will be benchmarked against Nifty 500 Value 50 Index, whereas Bandhan Nifty 500 Momentum 50 Index Fund will be benchmarked against Nifty 500 Momentum 50 Index.
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Bandhan Mutual Fund recently introduced two new open-ended index schemes, namely the Bandhan Nifty 500 Value 50 Index Fund and the Bandhan Nifty 500 Momentum 50 Index Fund. These funds are designed to mirror the performance of the Nifty 500 Value 50 Index and Nifty 500 Momentum 50 Index, respectively. The Nifty 500 Value 50 Index is comprised of 50 undervalued companies within the Nifty 500 universe, while the Nifty 500 Momentum 50 Index focuses on 50 stocks that have shown strong recent performance trends.
The Nifty 500 Value 50 Index is dedicated to identifying 50 undervalued companies from the Nifty 500 universe, whereas the Nifty 500 Momentum 50 Index zeroes in on 50 stocks that exhibit a strong recent performance trend.
Both the New Fund Offers opened for subscription on October 14, 2024, and will close on October 24, 2024.
Investment objective
1. Investors interested in integrating value and momentum strategies into their portfolios will find these index funds to be suitable. The funds focus on long-term wealth creation through equity investments in the Nifty 500 Value 50 Index and Nifty 500 Momentum 50 Index, respectively.
2. Bandhan Nifty 500 Value 50 Index Fund will be benchmarked against Nifty 500 Value 50 Index, whereas Bandhan Nifty 500 Momentum 50 Index Fund will be benchmarked against Nifty 500 Momentum 50 Index.
3. The minimum investment requirement is Rs 1,000.\
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4. The SIP investment minimum for both schemes is set at Rs 100, with subsequent investments in multiples of Re 1 and a minimum of six installments required.
5. In Bandhan Nifty 500 Value 50 Index Fund and Bandhan Nifty 500 Momentum 50 Index Fund, an exit load of 0.25% is applicable for redemptions within 15 days of the allotment date. There is no exit load for redemptions made after 15 days from the allotment date.
6. Both the Bandhan Nifty 500 Value 50 Index Fund and the Bandhan Nifty 500 Momentum 50 Index Fund are considered high-risk investments. The scheme’s riskometer reflects a “very high risk” profile, indicating that investors should be mindful of potential volatility and risk of capital loss.
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The benchmarks for these funds, Nifty 500 Value 50 TRI and Nifty 500 Momentum 50 TRI, also fall under the very high-risk category. Investors should carefully consider these factors before making any investment decisions.
“Factor Investing has gained considerable traction as it targets specific characteristics that have historically driven risk or returns. The Bandhan Nifty 500 Value 50 Index Fund offers exposure to out-of-favour stocks trading below their intrinsic value. On the other hand, the Bandhan Nifty 500 Momentum 50 Index Fund focuses on stocks with strong recent performance, expecting the trend to continue,” Vishal Kapoor, CEO of Bandhan AMC said.
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Index Mutual Fund
The Index Mutual Fund invests in stocks that replicate a stock market index such as the NSE Nifty or BSE Sensex. These funds are passively managed, meaning the fund manager invests in the same securities as those in the underlying index in the same proportion and does not alter the portfolio composition. The primary goal of these funds is to provide returns similar to the index they are tracking.
