Bandhan Nifty 500 Momentum 50 Index Fund NFO Opens on October 14

Bandhan Mutual Fund is launching its Nifty 500 Momentum 50 Index Fund (Regular Plan – Growth), and this new fund offers investors a unique opportunity to ride the wave of momentum investing. The NFO opens for subscription on October 14, 2024, and will close on October 24, 2024. Here’s a detailed look at the key aspects of this offering.

Benchmark Index

The Bandhan Nifty 500 Momentum 50 Index Fund tracks the Nifty 500 Momentum 50 TRI as its benchmark. The momentum strategy effectively identifies & invests in stocks that have experienced relatively substantial growth in market capitalization during its semi-annual rebalancing periods.

The momentum strategy invests in stocks that are outperforming and reduces exposure to stocks that are underperforming. It is based on the premise that stocks that have performed well in the recent past are likely to continue doing so. Simply, the strategy works on the philosophy ‘Trend is your friend’. Momentum factor works because investors generally tend to overreact or under-react to information.

Investment Objective

The primary objective of the Bandhan Nifty 500 Momentum 50 Index Fund is to replicate the performance of the Nifty 500 Momentum 50 TRI, subject to tracking errors. The fund aims to deliver long-term capital growth by investing in momentum-based stocks, offering investors a chance to capitalize on market trends.

Fund Manager

The fund will be managed by Mr. Nemish Sheth, a seasoned fund manager with over 10 years of experience.

Who Should Invest?

This fund is suitable for investors:

• Looking for long-term capital appreciation.
• Comfortable with high-risk, equity-based investments.
• Interested in a systematic approach to investing in high-momentum stocks.

It is ideal for investors with a long-term horizon who want to harness the power of momentum investing.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.