Bandhan Nifty 50 Index Fund - Direct Plan
Bandhan Nifty 50 Index Fund - Direct Plan
An open ended scheme tracking Nifty 50 Index
What is a Nifty 50 Index Mutual Fund?
Nifty 50 Index Mutual Funds are a type of mutual fund scheme that invest in the constituents of Nifty 50 Index. The Nifty 50 Index includes India’s top 50 companies with the largest market capitalisation. A significant number of these companies are leaders in their sector and have existed for many years. These companies may also be known as blue chip companies. As per the regulations, Nifty 50 index funds have to invest 95% of its total assets in equity and equity-related instruments of the Nifty 50 Index.
Index funds allow for diversification of an investors portfolio as they invest in companies belonging to different sectors. Diversification may potentially reduce the level of risk associated with an investment, although, as an index fund, Nifty 50 index funds are categorised as a very high-risk investment option.
When investing in Nifty 50 index mutual funds, investors can choose between lumpsum investment or SIP as per their convenience. SIP returns may be favourable in the long-run; they may enable savings and wealth creation in the long term.
Fund managers have a defined mandate regarding which stocks they can buy and sell and in what proportion. They are required to replicate the index they are following i.e. Nifty 50 Index. This reduces the risk of errors or bias. However, as Nifty 50 index funds invest in large and well-established companies, the growth potential is relatively low and it may impact returns.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
NIL (w.e.f. 4th February 2019)
Scheme is suitable for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : Nifty 50 TRIAlternate Benchmark : NA
- Performance
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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 | 30/04/2010 Since inception | 1 year | 3 year | 5 year | 10 year | 30/04/2010 Since inception | |
| Bandhan Nifty 50 Index Fund - Regular Plan - Growth | 32.32 | 16.05 | 14.84 | 13.66 | 11.87 | 13,242 | 15,647 | 19,985 | 36,028 | 47,640 |
| 33.11 | 16.75 | 15.37 | 14.16 | 12.27 | 13,322 | 15,935 | 20,451 | 37,653 | 50,103 | |
| 29.43 | 15.88 | 15.16 | 14.12 | 12.37 | 12,952 | 15,581 | 20,271 | 37,493 | 50,731 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Nemish Sheth (w.e.f 01/03/2022)
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 50 Index Fund
(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.
- Investment in equity and equity related instruments forming part of Nifty 50 index.
Who Should Invest in Nifty 50 Index Mutual Funds?
Nifty 50 Index Mutual Funds may potentially beat inflation in the long-term. These funds follow a passive investment strategy and may generate potentially long-term gains. Nifty 50 index mutual funds are thus suitable for investors seeking long-term investments.
Nifty 50 Index Mutual Funds are categorised as a very high-risk investment option and are not suitable for investors with a low risk appetite. Investors with a high-risk appetite seeking investments in equity and equity related instruments forming part of the Nifty 50 index are suitable for this fund.
How to Invest in Nifty 50 Index Mutual Fund?
Investing in Nifty 50 Index Mutual funds is a straight-forward process.
- You can choose to invest via SIP or lumpsum investment depending on your goals and investment horizon.
- Once you decide the mode of investment, you can either login to invest or invest via Quick Transact.
FAQs on Nifty 50 Index Mutual Fund
What is the Nifty 50 index mutual fund?
Nifty 50 Index mutual funds invest in constituents of the Nifty 50 Index. This Index comprises India's top 50 companies that are identified on the basis of market capitalisation.
How to invest in Nifty 50 Index Mutual Fund?
- You can choose to invest via opt for SIP or lumpsum investment depending on your goals and investment horizon.
- Once you decide the mode of investment, you can either login to invest or invest via Quick Transact.
Are Nifty 50 Index Mutual Fund SIP returns good?
Nifty 50 Index Mutual Funds are a long-term investment scheme that invest in India’s top 50 companies. They have the potential to provide gains in the long run.
Is the Nifty 50 Index Mutual fund risky?
Nifty 50 Index Mutual Funds are categorised as a high-risk investment option. They are vulnerable to market volatility and can be risky in the short-term.
Can I invest in Nifty 50 Index Mutual fund via SIP?
SIP investments are suitable for long-term and high-risk investments. Periodic investments allow the investor to save money and potentially create wealth in the long-term. Moreover, Nifty 50 Index Mutual Funds allow for diversification of the investors assets. So yes, you can invest in Nifty 50 Index Mutual Fund via SIP.
What are the benefits of investing in Nifty 50 index mutual fund?
Nifty 50 Index Mutual Funds invest in the top 50 companies in India. Consequently, these funds are relatively liquid. As they are invested in equities of large and well-established companies, Nifty 50 Index mutual fund returns may potentially be high, especially in the long-run. They may also be a stable investment option for investors.
What are the disadvantages of Nifty 50 index mutual funds?
While Nifty 50 Index Mutual Funds help diversifying investments across sectors, they primarily invest in large cap companies. As these funds primarily invest in large cap companies, the diversification of Nifty 50 Index Mutual Funds with respect to market capitalisation is limited; this may impact returns.