Bandhan Nifty 50 ETF
Bandhan Nifty 50 ETF
(NSE Scrip Code - IDFNIFTYET)
An open ended scheme tracking NIFTY 50 index
What is a Nifty 50 ETF?
Nifty 50 index funds are exchange-traded funds (ETFs) that track the Nifty 50 index. These mutual funds invest in companies present in the Nifty 50. The Nifty 50 is representative of the top 50 companies in the Indian stock market. These companies are identified on the basis of market capitalisation and some of them may be blue chip companies.
Similar to a regular stock, Nifty ETF funds can be purchased or sold on a stock exchange. Nifty fifty ETFs can be traded as intraday stocks, while Nifty 50 index funds can be purchased at the end of each trading day. Moreover, investors must have a DEMAT account to invest in ETFs, as they are traded like stocks. Mutual funds do not require a DEMAT account.
Index funds allow for diversification of an investor's assets as they invest in companies belonging to a variety of sectors. However, the companies may not be diverse in terms of market capitalisation. Although Nifty 50 ETFs are categorised as a high-risk investment option, the diversification of assets may help mitigate some level of risk.
Nifty 50 index ETFs are relatively less vulnerable to the risk of errors or bias, as they replicate the Nifty 50 index. However, as they invest in already established companies, with fewer growth opportunities, the returns may be relatively less.
Investors adopting a passive investment strategy may prefer Bandhan Nifty 50 ETF; it may have lower expense ratios, allows for risk management through diversification and give investors access to many stocks across industries. However, Nifty 50 ETFs are not a liquid investment, which may hinder transactions.
- Min Investment Directly with Fund
- Authorised Participants and Large Investors can directly purchase / redeem in blocks from the fund in “Creation unit size” on any business day. On the Exchange - The units of the Scheme can be purchased and sold in minimum lot of 1 unit and in multiples thereof.
- Min SIP Amount NA
- Exit LoadNil
Scheme is suitable for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : Nifty 50 TRIAlternate Benchmark :
- Performance
- Portfolio
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- Details
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 | 07/10/2016 Since inception | 1 year | 3 year | 5 year | 10 year | 07/10/2016 Since inception | |
| Bandhan Nifty 50 ETF | 33.01 | 16.53 | 15.12 | N.A. | 14.53 | 13,311 | 15,845 | 20,236 | N.A. | 27,584 |
| 33.11 | 16.75 | 15.37 | 14.16 | 14.80 | 13,322 | 15,935 | 20,451 | 37,653 | 28,057 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Nemish Sheth (w.e.f 01/11/2021)
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 50 ETF
(Scheme Risk-o-meter)
Nifty 50 TRI
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To create wealth over long term.
- Investing in equity and equity related instruments forming part of Nifty 50 index.
Who Should Invest in Nifty Fifty ETFs?
Nifty ETF funds adopt a passive investment strategy. These funds are suitable for investors seeking a passive investment option. Nifty fifty ETFs are characterised as a high-risk investment option and are not suitable for risk-averse investors. They are a long-term investment option that invest in equity and equity-related securities forming a part of the Nifty 50 index.
Bandhan Nifty 50 ETF invest primarily in companies present in the Nifty 50 index; these companies are usually well-established, large-cap companies. Thus, Bandhan Nifty 50 ETF may not be suitable for investors seeking diversification in market capitalisation.
FAQs on Nifty 50 ETF
What is a Nifty 50 ETF?
Nifty 50 ETF is a type of investment scheme which invests in equity and equity-related securities of companies in the Nifty 50 index. Contrary to Nifty 50 index funds, ETF funds can be traded as intraday stocks and investors require a DEMAT account to be able to invest in ETFs.
How can I invest in Bandhan Nifty 50 ETF?
To invest in Bandhan Nifty 50 ETF, investors need to open a DEMAT account. You can visit our website on https://bandhanmutual.com/ and start investing. Your trading account must have sufficient funds to cover the investment.
Is the Nifty 50 ETF good for the long term?
Nifty 50 ETFs are a suitable investment option for investors seeking long-term investments. They may help in wealth creation in the long-term. Moreover, as Nifty 50 ETFs invest in the top 50 companies in India, they may be able to give potential returns in the long-run.
Are Nifty 50 ETFs safe?
Nifty 50 ETFs invest in equity and equity-related securities of companies part of the Nifty 50 index. As they invest in equity, they are categorised as a high risk investment and are not suitable for risk averse investors.
What are the benefits of Nifty 50 ETFs?
Nifty fifty ETFs are suitable for long-term wealth creation. Investors seeking investments in equity and equity-related securities are suited to such funds. ETFs allow for intra-day trading, they may have lower expense ratios and provide flexible trading options.
What are the disadvantages of Nifty 50 ETFs?
Nifty fifty ETFs are subject to market risk. They are vulnerable to market volatility. Investors cannot invest in ETFs via SIP. Such funds may not be suitable for salaried income individuals seeking monthly savings and wealth creation.
Who should invest in Nifty 50 EFTs?
Nifty 50 ETFs are a high-risk investment option and are suitable for investors with a high-risk appetite. Investors seeking long-term wealth creation may invest in Nifty Fifty ETFs to meet their long-term goals. Lastly, Nifty ETF funds are suitable for investors seeking investments in equity and equity-related securities of the top 50 companies in India.