Bandhan Nifty Alpha 50 Index Fund - Direct Plan
The investment objective of the Scheme is to replicate the Nifty Alpha 50 Index by investing in securities of the Nifty Alpha 50 Index in the same proportion / weightage with an aim to provide returns before expenses that tracks the total return of Nifty Alpha 50 Index, subject to tracking errors.
However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns.
What is a Nifty Alpha 50 Index Fund?
Think about curating a playlist of the year's biggest hits—the songs that topped the charts and dominated the airwaves. The Nifty Alpha 50 Index Fund works similarly for your investments, selecting the top 50 stocks with the highest alphas, indicating their stellar performance over the last year. This fund aims to capture high growth by investing in these standout companies, offering an exciting option for investors ready to embrace some volatility.
The Nifty Alpha 50 Index Fund tracks the Nifty Alpha 50 index, which includes 50 stocks with the highest alphas over the past year. The weights of these securities are based on their alpha value, indicating high growth potential. However, due to its focus on high-alpha stocks, this fund may be vulnerable to volatility.
Like all index funds, the Bandhan Nifty Alpha 50 Index Fund is designed to track the Nifty Alpha 50 Index. One benefit of index funds is reduced vulnerability to human errors or biases. However, the Nifty Alpha 50 Index Fund is considered high-risk due to its lack of diversification across market cap or asset class, as it focuses solely on the top 50 high-alpha stocks. Additionally, this fund may be prone to tracking errors from changes in the index, regulatory policies, or fees.
As an index fund, the Nifty Alpha 50 Index Fund is subject to Short-Term Capital Gains (STCG) tax of 15% on units held for less than one year. Long-Term Capital Gains (LTCG) tax of 10% is applied to units held for more than one year on gains exceeding ₹1,00,000.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
Nil
Tier 1 Benchmark : Nifty Alpha 50 IndexAlternate Benchmark : Nifty 50 TRI
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Performance as on 29th November 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 09/11/2023 Since inception | 1 year | 3 year | 5 year | 10 year | 09/11/2023 Since inception | |
| Bandhan Nifty Alpha 50 Index Fund - Regular Plan - Growth | 41.40 | N.A. | N.A. | N.A. | 44.63 | 14,154 | N.A. | N.A. | N.A. | 14,773 |
| 45.67 | 21.49 | 35.32 | N.A. | 49.18 | 14,582 | 17,942 | 45,442 | N.A. | 15,265 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Nemish Sheth (w.e.f 09/11/2023)
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 Alpha 50 Index Fund
(Scheme Risk-o-meter)
Nifty Alpha 50 Index
(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 belonging to Nifty Alpha 50 Index
Who Should Invest in a Nifty Alpha 50 Index Fund?
The companies in the Nifty Alpha 50 Index are well-established but offer high growth potential, making this fund suitable for investors seeking long-term wealth creation opportunities.
The Bandhan Nifty Alpha 50 Index Fund is suitable for investors with a high-risk appetite. Despite investing in well-established companies, the fund is exposed to market volatility, tracking errors, and other risks such as settlement and liquidity risks.
This fund is not suitable for investors seeking diversification, as it focuses solely on high-alpha stocks without spreading investments across different market caps or asset classes.
Investors looking for passive exposure to the Nifty Alpha 50 Index may benefit from this fund. It's essential to clearly define your investment goals before choosing this fund.
FAQs on a Nifty Alpha 50 Index Fund
What is the meaning of Nifty Alpha 50 index funds?
Nifty Alpha 50 Index funds aim to track the Nifty 50 Alpha Index. This index comprises high-alpha stocks present on the Nifty 50 index.
What is the difference between Nifty 50 funds and Nifty alpha 50 funds?
Nifty 50 index funds track the top 50 companies listed on the National Stock Exchange. It is the benchmark for the overall performance of the Indian stock market. On the other hand, Nifty Alpha 50 index funds track the performance of stocks with high alpha scores. Stocks with high alpha scores have the potential to outperform the market.
What are high alpha stocks?
A high alpha stock is a stock with alpha value above 0. A higher alpha indicates a potentially greater return on investment.
Is Bandhan Nifty Alpha 50 index fund risky?
Yes, Bandhan Nifty Alpha 50 index fund is categorised as a high-risk investment option. This fund mainly invests in equities of companies. As a result, it may be vulnerable to market volatility, tracking errors, settlement risk, liquidity risks etc.
What are the benefits of investing in Nifty 50 Alpha funds?
Nifty Alpha 50 funds may be beneficial for investors seeking long-term wealth creation as the fund invests in stocks of companies with high growth potential. Moreover, index funds are passive investments and may have a lower expense ratio. Lastly, as index funds simply track an index they are less vulnerable to biases and errors.