Bandhan Nifty 100 Index Fund - Direct Plan
An open-ended scheme tracking Nifty 100 Index
What is the Nifty 100 Index Fund?
Ever wondered how you can invest in the powerhouses of the Indian economy? The Nifty 100 Index Fund offers access to the top 100 companies that lead various sectors. This fund gives you a chance to invest in India's largest companies. Let’s take a closer look at how the index works.
Nifty 100 index funds track the Nifty 100 index and invest in the companies included in the index. These top 100 companies are identified by their market capitalization and often include blue-chip firms.
The Nifty 100 represents major sectors of the Indian economy, offering investors potential sectoral diversification. However, because these funds focus on large-cap companies, they do not provide diversification across different market capitalizations.
Nifty 100 index funds are required to invest in companies that are part of the index, meaning they aim to mirror the index and cannot adjust holdings based on market conditions. One advantage of these funds is that they are less prone to human errors or biases, as they simply replicate the Nifty 100 index. However, because they focus on well-established companies with limited growth opportunities, their potential returns may be lower compared to more aggressive equity funds.
Index funds are subject to taxes on capital gains and dividends. Dividends are added to the investor's income and taxed according to their income tax slab. Capital gains are taxed based on the holding period: gains from units held for less than a year are taxed at 15%, while gains from units held for over a year are taxed at 10% if they exceed ₹1,00,000.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
Nil
Scheme is suitable for a minimum investment horizon of 3 years
Tier 1 Benchmark : Nifty 100 TRIAlternate Benchmark : Nifty 50 TRI
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Performance as on 30th September 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 24/02/2022 Since inception | 1 year | 3 year | 5 year | 10 year | 24/02/2022 Since inception | |
| Bandhan Nifty 100 Index Fund - Regular Plan - Growth | 37.61 | N.A. | N.A. | N.A. | 18.82 | 13,786 | N.A. | N.A. | N.A. | 15,658 |
| 38.59 | 15.93 | 19.57 | 14.37 | 22.25 | 13,884 | 15,586 | 24,466 | 38,349 | 16,860 | |
| 32.80 | 14.92 | 18.95 | 13.83 | 20.95 | 13,300 | 15,184 | 23,839 | 36,578 | 16,397 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Nemish Sheth (w.e.f 24/02/2022)
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 100 Index Fund
(Scheme Risk-o-meter)
Nifty 100 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 100 Index
Who Should Invest in Nifty 100 Index Mutual Funds?
Index funds follow a passive investment strategy, which generally results in lower expense ratios. Since they invest in equity and equity-related securities, they carry higher risk and may not be suitable for risk-averse investors. Nifty 100 index funds are ideal for investors with a high-risk tolerance looking for a passive investment option.
Nifty 100 index funds invest in well-established large-cap companies, which may limit diversification across different market capitalizations. As a result, these funds may not be ideal for investors seeking broader diversification. Nifty 100 index funds are most suitable for investors with a long-term horizon.
FAQs on Bandhan Nifty 100 Index Fund
What is Nifty 100 index?
Nifty is the index for the National Stock Exchange in India. The Nifty 100 index represents the top 100 companies on the basis of market capitalisation.
Is Nifty 100 a good investment?
Nifty 100 mutual funds may be suitable for investors with a high-risk appetite, seeking long-term wealth creation by investing in equity and equity-related instruments through a passive investment strategy. They may not be suitable for investors seeking low-risk or short-term investments.
Is Nifty 100 safe for the long-term?
Nifty 100 mutual funds invest in equities of the top 100 companies in India. As these companies are well-established, the scope for growth is reduced. Consequently, investors may stay invested in this fund for a longer period. However, no mutual funds are safe as all mutual funds are subject to market risks.
How are index funds in India taxed?
Dividends from index funds are included in the income of the investors and taxed on the basis of the investors income tax slab. Units held for less than a year are subject to STCG tax at 15%, units held for over a year are subject to LTCG tax at 10% if the gains exceed ₹1,00,000.
What are the disadvantages of Nifty 100 Index mutual funds?
Index funds are generally considered a high-risk investment option. They may be subject to tracking errors. Nifty 100 index funds allow for diversification across sectors however, they invest in only one market cap as they are mandated to invest in the top 100 companies in India, restricting any advantages investors may gain from investments in small and midcap companies.
What are the benefits of Nifty 100 index funds?
Nifty 100 index funds may be suitable for investors seeking a passive investment strategy by replicating an index. They allow investors to diversify their investments across sectors and potentially reduce risk. Moreover, Nifty 100 index funds may allow investors to create wealth in the long-term.