Bandhan Nifty Alpha 50 Index Fund - Direct Plan
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?
The Nifty Alpha 50 Index fund is an index scheme that tracks the Nifty Alpha 50 index. This index tracks the performance of 50 stocks on the National Stock Exchange with high Alphas in the last year. The weights of the securities are assigned based on the alpha value. This fund invests in stocks with high growth potential; however, due to its focus on Alpha stocks, it may be vulnerable to volatility.
Like all index funds, Bandhan Nifty Alpha 50 Index funds are mandated to track the Nifty Alpha 50 Index. One of the key benefits of index funds is the reduced vulnerability to errors and biases. However, the Nifty Alpha 50 Index Fund is a high-risk investment. It is not a diversified investment option as the fund’s securities are not diversified across market cap or asset class. Nifty Alpha 50 index funds predominantly invest in equities of the top 50 companies with high alphas listed on the National Stock Exchange. Due to the lack of diversification, this may be a high-risk investment option. Additionally, Nifty Alpha 50 index funds may be vulnerable to tracking errors due to changes in the underlying index, regulatory policies, fees and expenses, etc.
As an index fund, Nifty Alpha 50 index fund is subject to STCG and LTCG tax based on the holding period. Short-Term Capital Gains Tax (STCG) is levied on units held for one year at 15%. Long-Term Capital Gains Tax (LTCG) is applicable on units held for over one year. LTCG is levied at 10% on gains over ₹1,00,000.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
Nil
This scheme has not completed one year.
Tier 1 Benchmark : Nifty Alpha 50 IndexAlternate Benchmark : Nifty 50 TRI
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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/3spfzbo
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?
Although companies present in the Nifty Alpha 50 index are large and well-established companies, they may have a higher growth potential. This may be suitable for investors seeking potential long-term wealth creation opportunities.
Bandhan Nifty Alpha 50 Index fund may be suitable for investors with a high-risk appetite. Although the fund invests in large and well-established companies, it may be vulnerable to market volatility and fluctuations. As an index fund, this scheme may also be vulnerable to tracking errors. Moreover, Bandhan Nifty Alpha 50 Index fund may also be vulnerable to settlement risk, liquidity risk etc.
Nifty Alpha 50 index funds may not be suitable for investors seeking a diversified fund as this fund does not diversify its assets across market caps or asset classes.
Investors seeking to passively invest in the Nifty Alpha 50 index may potentially benefit from this scheme. However, this fund aims to track the Nifty Alpha 50 index and not outperform it. Investors must clearly identify and define their goals before investing.
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.