Bandhan Nifty IT Index Fund - Direct Plan
Bandhan Nifty IT Index Fund - Direct Plan
An open-ended scheme tracking Nifty IT Index
What is a Nifty IT Index Fund?
A Nifty IT Index Fund is a type of sectoral index fund that invests predominantly in equities and equity-related instruments of IT companies. As an index fund, the Bandhan Nifty IT index fund tracks the Nifty IT index. Nifty refers to the National Stock Exchange Fifty and is the index for the National Stock Exchange in India.
The IT sector plays a major role in the Indian economy and is represented by the The Nifty IT index. Investors may potentially benefit from the performance of companies involved in IT-related activities such as IT infrastructure, telecommunication and networking, software development, IT support and maintenance etc.
At least 95% of Bandhan Nifty IT Index Mutual Fund is invested in equities and is consequently a high-risk fund. Equity assets are highly vulnerable to market volatility and fluctuations and may not be suitable for risk-averse investors. Moreover, IT Index mutual funds focus on a single sector, mitigating the potential benefits of diversification.
Sectoral funds such as the Nifty IT Index fund may allow investors to gain exposure to a whole sector instead of investing in stocks of individual companies. Consequently, favourable performance of the sector may potentially benefit investors.
Nifty IT index funds are subject to STCG and LTCG tax, depending on the holding period. Units held for less than one year are taxed at 15%. Gains over ₹1 lakh derived from units held for more than one year are taxed under LTCG tax at 10%.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
Nil
This scheme has not completed one year.
Scheme is suitable for creating wealth over a long term via investments in equity and equity related instruments belonging to Nifty IT Index.
Tier 1 Benchmark : Nifty IT TRIAlternate Benchmark : Nifty 50 TRI
- Performance
- Portfolio
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- Details
This fund is managed by Mr. Nemish Sheth (w.e.f 31/08/2023)
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 IT Index Fund
(Scheme Risk-o-meter)
Nifty IT TRI
(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 IT Index
Who Should Invest in Nifty IT Index Mutual Funds?
Nifty IT Index Mutual Funds are a high-risk investment option. As a large part of the fund’s corpus is invested in equities, Nifty IT index funds are vulnerable to market volatility. They are suitable for investors with a high-risk appetite. Moreover, sectoral mutual funds are a long-term investment option and are consequently suitable for investors with a long-term investment horizon.
Nifty IT index mutual funds may not be suitable for investors seeking diversification in their portfolios as the fund primarily invests in one sector. The lower diversification of assets may increase the risk.
Bandhan Nifty IT index fund may be suitable for investors seeking wealth creation in the long-term. Moreover, investors seeking a passive investment strategy and investments in equity and equity-related instruments belonging to the Nifty IT index may be suited to this fund.
Index funds primarily aim to replicate the index they are tracking and not out-perform it. While Nifty IT Index mutual funds may potentially allow investors to create wealth in the long-run, they do not adopt an aggressive investment strategy. Investors seeking to beat the market may not be suited to this fund.
FAQs on Nifty IT Index Fund
Is there any IT index mutual fund in India?
Yes, there are several IT index funds in India which track the Nifty IT index. Bandhan Nifty IT index fund is one of the IT index funds available in India. This fund tracks and replicates the Nifty IT Index.
How to invest in the Nifty IT Index?
Investors can invest in the Nifty IT index via Nifty IT index mutual funds. These funds track the Nifty IT index and allow investors to potentially benefit from the performance of the index. They invest primarily in equities of companies listed on the Nifty IT index.
What are the advantages of the Nifty IT index fund?
Nifty IT index funds allow investors to invest in the whole sector instead of stocks of individual companies. As a result investors may benefit from the performance of the entire sector. Moreover, Nifty IT Index funds may be suitable for investors seeking wealth creation in the long-term.
What are the risks associated with Nifty IT index funds?
Nifty IT index funds are a sectoral fund with a primary focus on a single sector. Consequently, the fund’s assets are not diversified, increasing the level of risk involved in the investment. Moreover, the fund's assets are primarily allocated in equities, making the fund vulnerable to market volatility.