Bandhan Nifty 500 Value 50 Index Fund NFO

Introduction

The New Fund Offer (NFO) for Bandhan Nifty 500 Value 50 Index Fund opens on October 14, 2024, and presents an excellent opportunity for investors seeking value-centric equity exposure. As a passive fund tracking the Nifty 500 Value 50 Index, it offers exposure to undervalued stocks within the larger Nifty 500 universe.

Key Highlights

• Fund Type: Open-ended Index Fund
• Benchmark: Nifty 500 Value 50 Index
• NFO Period: October 14, 2024 – October 24, 2024
• Price per Unit: Rs 10
• Re-opens for Subscription: October 30, 2024

Investment Objective

The primary goal of the Bandhan Nifty 500 Value 50 Index Fund is to replicate the Nifty 500 Value 50 Index. This index includes companies that exhibit value characteristics, making it ideal for investors with a long-term horizon aiming for consistent wealth creation.

The scheme intends to track the index as closely as possible, maintaining minimal tracking error, though returns may vary slightly due to market conditions.

Asset Allocation

• Equity & Equity Derivatives (Nifty 500 Value 50 Index): 95-100%
• Debt & Money Market Instruments: 0-5%

The fund will primarily invest in the constituents of the Nifty 500 Value 50 Index, ensuring strong adherence to the value strategy. To meet liquidity needs, up to 5% of the assets may be allocated to debt and money market instruments.

Who Should Invest?

This fund is best suited for:

• Investors seeking long-term wealth creation.
• Those with a higher risk tolerance, comfortable with equity market fluctuations.
• Investors looking for exposure to undervalued stocks across various sectors in the Nifty 500 universe.

Fund Features

• Plans Available: Regular and Direct Plan (Growth option only).
• Exit Load: 0.25% if redeemed within 15 days from allotment; no exit load after 15 days.
• Minimum Investment: Rs 1,000 during the NFO.

Why Choose This Fund?

1. Value Investing: A disciplined approach focusing on undervalued stocks, providing potential for higher returns over the long term.
2. Low Costs: As an index fund, it comes with lower management fees, enhancing potential returns.
3. Diversified Exposure: Offers exposure to 50 companies from various sectors, mitigating concentration risk.

Conclusion

The Bandhan Nifty 500 Value 50 Index Fund NFO is a timely opportunity for investors seeking a value-centric investment with long-term potential. With its disciplined approach to tracking value stocks, it aims to deliver consistent returns and be a strong component of a diversified portfolio.

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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.