Bandhan MF launches Bandhan Nifty Midcap 150 Index Fund

Bandhan Mutual Fund has introduced a new investment opportunity with the launch of the Bandhan Nifty Midcap 150 Index Fund. This open-ended scheme is designed to track the Nifty Midcap 150 Index, offering investors a chance to participate in the midcap segment of the Indian stock market. The New Fund Offer (NFO) is currently open and will remain available for subscription until September 13, 2024.

Investment Objective and Strategy

The primary objective of the Bandhan Nifty Midcap 150 Index Fund is to replicate the performance of the Nifty Midcap 150 Index. The fund achieves this by investing in the securities that constitute the index in the same proportion and weightage. The goal is to deliver returns that closely track the total return of the Nifty Midcap 150 Index, with minimal tracking errors. The scheme will be passively managed, with 95-100% of the corpus allocated to stocks within the index, including stock and index derivatives. A small portion, between 0-5%, may be invested in debt and money market instruments to maintain liquidity.

Fund Details and Investor Options

The Bandhan Nifty Midcap 150 Index Fund offers both regular and direct plans, with growth options available under each. The fund imposes an exit load of 0.25% if units are redeemed within 15 days from the date of allotment; however, no exit load is charged for redemptions after 15 days. The maximum Total Expense Ratio (TER) for the fund is capped at 1% as per regulatory guidelines. Investors can enter the fund with a minimum lump sum investment of Rs 1,000, while the minimum investment for Systematic Investment Plans (SIPs) is Rs 100 with at least six installments. The fund also offers Systematic Transfer Plans (STPs), with a minimum transfer amount of Rs 500.

Conclusion: The Bandhan Nifty Midcap 150 Index Fund presents a viable option for investors looking to gain exposure to the midcap segment of the Indian stock market. With its focus on replicating the Nifty Midcap 150 Index, the fund aims to offer returns that are closely aligned with the index, making it an attractive option for those seeking a diversified and cost-effective investment. The NFO is open until September 13, 2024, with the scheme set to reopen for continuous sale and repurchase on September 20, 2024.

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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.