Bandhan Nifty IT Index Fund - Direct Plan
An open-ended scheme tracking Nifty IT Index
What is a Nifty IT Index Fund?
From the smartphone apps that guide your commute to the cloud services that store your photos, IT drives modern life. The Nifty IT Index Fund allows you to invest in the companies behind these technologies, giving you a chance to be part of the rapidly growing tech sector.
A Nifty IT Index Fund is a type of sectoral index fund that invests predominantly in equities and equity-related instruments of IT companies. As an index fund, the Bandhan Nifty IT index fund tracks the Nifty IT index.
The IT sector is a major contributor to the Indian economy, and the Nifty IT Index represents companies involved in IT infrastructure, telecommunications and networking, software development, IT support and maintenance, etc. Investors can benefit from the growth potential of these IT-driven businesses.
With at least 95% of its corpus invested in equities, the Bandhan Nifty IT Index Fund is a high-risk fund. Being an IT Index mutual fund, its focus on the IT sector limits diversification, making it vulnerable to market volatility and less suitable for risk-averse investors.
Sectoral funds like the Nifty IT Index Fund provide exposure to an entire sector, allowing investors to potentially benefit from the overall performance of the IT industry, rather than individual stocks.
Nifty IT Index funds are subject to Short-Term Capital Gains (STCG) tax at 15% for units held for less than one year. Long-Term Capital Gains (LTCG) over ₹1 lakh for units held for more than a year are taxed at 10%.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
Nil
Scheme is suitable for creating wealth over a long term via investments in equity and equity related instruments belonging to Nifty IT Index.
Tier 1 Benchmark : Nifty IT TRIAlternate Benchmark : Nifty 50 TRI
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Performance as on 31st October 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 31/08/2023 Since inception | 1 year | 3 year | 5 year | 10 year | 31/08/2023 Since inception | |
| Bandhan Nifty IT Index Fund - Regular Plan - Growth | 34.80 | N.A. | N.A. | N.A. | 27.40 | 13,491 | N.A. | N.A. | N.A. | 13,275 |
| 34.76 | 7.59 | 23.35 | 15.77 | 27.66 | 13,487 | 12,461 | 28,590 | 43,287 | 13,307 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Nemish Sheth (w.e.f 31/08/2023)
View fund performance of other funds managed by Mr. Nemish Sheth
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/46xQzi1
Bandhan Nifty IT Index Fund
(Scheme Risk-o-meter)
Nifty IT TRI
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking*:
• To create wealth over a long term
• Investment in equity and equity related instruments belonging to Nifty IT Index
Who Should Invest in Nifty IT Index Mutual Funds?
Nifty IT Index Mutual Funds are high-risk investments due to their significant equity exposure and vulnerability to market volatility. These funds are suitable for investors with a high-risk tolerance and a long-term investment horizon.
These funds may not be suitable for investors seeking diversification, as they focus solely on the IT sector, increasing risk due to limited asset variety.
The Bandhan Nifty IT Index Fund may be ideal for long-term wealth creation, particularly for investors looking for a passive investment strategy focused on equity and equity-related instruments belonging to the Nifty IT index.
Index funds aim to replicate, not outperform, their benchmark. While Nifty IT Index funds may help build wealth over the long term, they do not follow an aggressive investment strategy. Investors seeking to beat the market may find this fund unsuitable.
FAQs on Nifty IT Index Fund
Is there any IT index mutual fund in India?
Yes, there are several IT index funds in India which track the Nifty IT index. Bandhan Nifty IT index fund is one of the IT index funds available in India. This fund tracks and replicates the Nifty IT Index.
How to invest in the Nifty IT Index?
Investors can invest in the Nifty IT index via Nifty IT index mutual funds. These funds track the Nifty IT index and allow investors to potentially benefit from the performance of the index. They invest primarily in equities of companies listed on the Nifty IT index.
What are the advantages of the Nifty IT index fund?
Nifty IT index funds allow investors to invest in the whole sector instead of stocks of individual companies. As a result investors may benefit from the performance of the entire sector. Moreover, Nifty IT Index funds may be suitable for investors seeking wealth creation in the long-term.
What are the risks associated with Nifty IT index funds?
Nifty IT index funds are a sectoral fund with a primary focus on a single sector. Consequently, the fund’s assets are not diversified, increasing the level of risk involved in the investment. Moreover, the fund's assets are primarily allocated in equities, making the fund vulnerable to market volatility.