Bandhan Nifty 100 Index Fund - Direct Plan
Bandhan Nifty 100 Index Fund - Direct Plan
An open-ended scheme tracking Nifty 100 Index
What is the Nifty 100 Index Fund?
Nifty refers to the National Stock Exchange Fifty, it is the index for the National Stock Exchange in India. Nifty 100 index funds track the Nifty 100 index and invest in equities of companies present in the Nifty 100. The Nifty 100 is representative of the top 100 companies in the Indian stock market. They are identified on the basis of their market capitalisation and may include bluechip companies.
The Nifty 100 represents major sectors of the Indian economy. It allows investors to potentially diversify their portfolio across different sectors. However, despite the sectoral diversification, Nifty 100 index funds invest primarily in large cap companies and investors may not diversify their portfolios in terms of market capitalisation.
Nifty index funds are mandated to invest in companies belonging to the index. They aim to track the index and cannot adjust their holdings to suit market conditions. However, Nifty 100 index funds in India may offer several benefits. They are relatively less vulnerable to the risk of errors or bias, as they replicate the Nifty 100 index. However, as they invest in already established companies, with fewer growth opportunities, the potential returns may be relatively less.
Taxes on index funds are levied on capital gains and dividends. Dividends are included in the income of the investors and taxed on the basis of the investors income tax slab. Capital gains tax is determined by the time the units are held. Units held for less than a year are taxed at 15%, units held for over a year are taxed at 10% if the gains 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 28th March 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 | 36.96 | N.A. | N.A. | N.A. | 14.63 | 13,707 | N.A. | N.A. | N.A. | 13,302 |
| 37.81 | 17.38 | 15.63 | 14.67 | 18.53 | 13,793 | 16,193 | 20,684 | 39,361 | 14,267 | |
| 33.11 | 16.75 | 15.37 | 14.16 | 17.72 | 13,322 | 15,935 | 20,451 | 37,653 | 14,065 | |
| ^ 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/3spfzbo
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 in India adopt a passive investment strategy as they track an index. Consequently, they may have lower expense ratios. However, as these funds invest in equity and equity-related securities, they are a high-risk fund and may not be suitable for risk-averse investors. Nifty 100 index funds are suitable for investors with a high-risk appetite, seeking a passive investment option.
Nifty 100 index funds track the Nifty 100 index by investing in companies present in this index. These companies are well-established and large-cap companies. Nifty 100 index funds may not be suitable for investors seeking diversification across market capitalisations. They may be suitable for investors with a long-term investment 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.