Bandhan Mutual Fund To Launch Bandhan Nifty Alpha Low Volatility 30 Index Fund

Bandhan Mutual Fund has announced the launch of its new open-ended equity scheme, designed to replicate the Nifty Alpha Low Volatility 30 Index. The scheme aims to provide returns that align closely with the index’s total return before expenses, with minimal tracking errors. This fund offers investors an opportunity to access a diversified portfolio emphasising both alpha generation and low volatility.

Investment Strategy: Replicating the Nifty Alpha Low Volatility 30 Index

The scheme is structured to replicate the Nifty Alpha Low Volatility 30 Index, which combines securities selected for their high alpha and low volatility. The fund invests in the index’s constituent securities in the same proportion and weightage, aiming to deliver returns that closely match the index’s total returns. By adhering to this strategy, the fund provides exposure to high-quality, stable companies with growth potential, while keeping tracking errors to a minimum.

The scheme is categorised as an equity fund focusing on large and mid-cap securities. It features no lock-in period and offers a very high-risk investment option, as indicated by its riskometer.

Key Details and Management

The New Fund Offer (NFO) will open for subscription on January 8, 2025, and close on January 20, 2025. Investors can start with a minimum investment of ₹1,000, and the fund is available under the Growth Plan.

An exit load of 0.25% is applicable if units are redeemed within 15 days. After this period, no exit load applies, offering flexibility for short-term and long-term investors alike.

The fund is managed by Nemish Sheth, who has extensive experience in portfolio management. A B.Com graduate with a PGDM in Finance, Mr Sheth has previously worked with leading asset management companies, including Nippon Life India Asset Management Ltd. and ICICI Prudential Asset Management Company Ltd.

Conclusion

Bandhan Mutual Fund’s new scheme provides an opportunity for investors to benefit from a portfolio aligned with the Nifty Alpha Low Volatility 30 Index, combining the advantages of alpha generation and low volatility. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.