Bandhan Nifty Bank Index Fund - Direct Plan
The investment objective of the Scheme is to replicate the Nifty Bank Index by investing in securities of the Nifty Bank Index in the same proportion / weightage with an aim to provide returns before expenses that tracks the total return of Nifty Bank 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 Bank Index Fund in India?
Banking plays a crucial role in our daily lives, from managing salaries to facilitating payments and securing loans. The Nifty Bank Index Fund offers investors a chance to capitalise on the growth potential of top banks, providing a way to invest in the backbone of the economy.
This fund is an index scheme that follows the Nifty Bank Index, which reflects the performance of leading banking stocks. Bandhan Nifty Bank Index Mutual Fund aims to replicate the returns of this sectoral index.
As per the mandate, the Bandhan Nifty Bank Index Fund allocates at least 95% of its assets to stocks and index derivatives of companies within the Nifty Bank Index. The remaining 5% may be invested in debt and money market instruments for added flexibility.
Since the Nifty Bank Index Fund is sector-specific, its assets are concentrated in banking equities, limiting diversification. This concentration makes it a higher-risk investment due to its reliance on the performance of a single sector.
The returns of a Nifty Bank Index Fund are directly tied to the performance of the underlying banking stocks. While primarily invested in equities, the fund carries market, liquidity, and concentration risks, along with the potential for tracking errors.
Capital gains and dividends from Nifty Bank Index Funds are taxed based on the holding period. Gains on units held for less than one year are taxed at 15%, while gains over ₹1 lakh held for more than one year are subject to LTCG at 10%.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load0.25%
• If redeemed/switched out on or before 15 days from the date of allotment - 0.25%
• If redeemed/switched out after 15 days from the date of allotment - NIL
This scheme has not completed one year.
Tier 1 Benchmark : Nifty Bank Total Return IndexAlternate Benchmark :
- Performance
- Portfolio
- Download
- Details
This fund is managed by Mr. Nemish Sheth (w.e.f 27/08/2024)
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 Bank Index Fund
(Scheme Risk-o-meter)
Nifty Bank Total Return Index
(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 Bank Index
Who Should Invest in Bandhan Nifty Bank Index Fund?
Bandhan Nifty Bank Index Fund may be ideal for investors looking for a passive investment option. By tracking the Nifty Bank Index, this scheme aims to mirror its returns. Its passive strategy often results in a lower expense ratio, potentially offering long-term benefits to investors.
Investors with a high-risk appetite may find the Bandhan Nifty Bank Index Fund suitable. As it primarily invests in banking equities, the fund is exposed to market volatility, liquidity risk, tracking errors, and concentration risk.
This fund may appeal to investors following a sectoral strategy who wish to benefit from the performance of banking sector. While it lacks inherent diversification, it can still help diversify an overall portfolio.
The Bandhan Nifty Bank Index Fund is suited for investors aiming for long-term wealth creation. Staying invested over time may help mitigate the impact of market volatility.
FAQs on Bandhan Nifty Bank Index Fund
What does a Nifty banking index fund invest in?
Nifty bank mutual funds in India invest in banking sector stocks present in the Nifty Bank Index. This index captures the capital market performance of the Indian banking sector.
Is Bandhan Nifty Bank Index mutual fund a safe investment?
Bandhan Nifty Bank Index fund is categorised as a high-risk investment as it predominantly invests in equities of one sector. The scheme may be vulnerable to market volatility, concentration risk, tracking errors, and other risks. No mutual fund investment offers guaranteed returns. Investors must analyse the fund’s performance, their risk appetite and goals before investing.
Is Bandhan Nifty Bank Index fund suitable for diversification?
Bandhan Nifty Bank Index fund invests in equities belonging to one sector only. The scheme is not inherently diversified, however, it may contribute to portfolio diversification.
How to invest in Bandhan Nifty Bank Index Fund?
To invest in Bandhan Nifty Bank Index fund click the “Invest Now” button. Fill in the required information and complete the KYC.
Are there any lock-in periods for the Nifty Bank Index Fund?
No, Bandhan Nifty Bank Index Fund does not have any lock-in period.
Can I set up a systematic investment plan (SIP) for the Nifty Bank Index Fund?
Yes, you can set up an SIP for Bandhan Nifty Bank Index fund. The minimum SIP amount is ₹100.