Bandhan Nifty Smallcap 250 Index Fund - Direct Plan
Bandhan Nifty Smallcap 250 Index Fund - Direct Plan
The fund aims to replicate the Nifty Smallcap 250 Index by investing in the underlying securities in the same proportion, subject to tracking error.
Nifty Smallcap 250 represents the balance 250 companies (companies ranked 251-500) from Nifty 500.
What is a Nifty Smallcap 250 Index Fund?
Bandhan Nifty Smallcap 250 Index Fund is an open-ended index scheme that tracks and replicates the Nifty Smallcap 250 index. This index encompasses the stocks from 250 small cap companies in India. These companies are identified based on their market capitalisation; small-cap companies have a market capitalisation below ₹5,000 crore.
According to the mandate, smallcap 250 index funds are mandated to invest a minimum of 95% in stocks and index derivatives of companies present in the Nifty Smallcap 250 index. Up to 5% of the fund can be invested in debt and money market instruments. This fund allows investors to potentially benefit from the performance and growth of small cap companies.
This fund may invest in companies across different sectors, allowing investors to diversify their investment portfolio. However, as this fund invests primarily in equities of small cap companies, it is not diversified across market capitalisation or asset classes.
Nifty Smallcap 250 index mutual funds are mandated to invest in stocks of companies present in the index. The scheme aims to track the index and replicate its returns. While the fund may be subject to certain risks such as tracking errors and market risks, it has several potential benefits. Nifty Smallcap 250 Index Funds may be relatively less vulnerable to biases or errors. Moreover, small cap companies may have greater growth potential. As a result, the potential returns of Nifty Smallcap 250 Index mutual funds may be beneficial for investors in the long-run.
Taxes on Nifty Smallcap 250 Index funds are levied on capital gains and dividends. Capital gains tax is levied based on the holding period. Units held for less than 1 year are taxed at 15%. Gains over ₹1,00,000 held for over a year are taxed as LTCG at 10%. Dividends earned from this index fund are included in the income of the investors and taxed based on the income tax slab.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
Nil
This scheme has not completed one year.
Tier 1 Benchmark : Nifty Smallcap 250 IndexAlternate Benchmark :
- Performance
- Portfolio
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- Details
This fund is managed by Mr. Nemish Sheth (w.e.f 22/12/2023)
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 Smallcap 250 Index Fund
(Scheme Risk-o-meter)
Nifty Smallcap 250 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 Smallcap 250 Index
Who Should Invest in a Nifty Smallcap 250 Index Fund?
Index funds follow a passive investment strategy by tracking a particular market index. As a result, these schemes may potentially have a lower expense ratio. Investors seeking to passively track the Nifty Smallcap 250 Index may be suitable for this scheme. Moreover, investors seeking to invest in funds with a low expense ratio may potentially benefit from this investment.
Bandhan Nifty Smallcap 250 Index Fund invests primarily in stocks and index derivatives of small cap companies. These companies are vulnerable to market volatility and fluctuations, consequently making this a very high risk investment. Investors with a high-risk tolerance and long-term investment horizon may potentially benefit from investing in this scheme.
Nifty Smallcap 250 index mutual funds aim to potentially create wealth in the long-term. Small cap companies have significant potential to grow, however, they may be vulnerable to market volatility. By investing in them for the long-term, investors may potentially ride out volatility.
FAQs on Nifty Smallcap 250 Index Fund
What does a Nifty Smallcap 250 Index Fund invest in?
A Nifty Smallcap 250 Index Fund is mandated to invest at least 95% of its corpus in stocks and index derivatives of companies present in the Nifty Smallcap 250 index. The fund may invest 5% of its corpus in debt and money market instruments.
What is the eligibility criteria for Nifty Smallcap 250 index?
The company's present in the Nifty Smallcap 250 index are small cap companies, determined by their market capitalisation. They have a market capitalisation below ₹5,000 crore. These companies are ranked from 251-500 on the NSE.
Are Nifty Smallcap 250 Index mutual funds risky investments?
Yes, Nifty Smallcap 250 Index funds are a very high-risk investment as they primarily invest in small cap companies. They may be vulnerable to market volatility and fluctuations. Moreover, as an index fund, this scheme may be subject to tracking errors.
Are Nifty Smallcap 250 index mutual funds suitable for wealth creation?
Nifty Smallcap 250 index funds aim to potentially create wealth in the long-run. Small cap companies may have greater growth potential, however they may be affected by market fluctuations. Investing in these schemes in the long-run may help ride out volatility.
Is Bandhan Nifty Smallcap 250 index fund suitable for diversification?
Bandhan Nifty Smallcap 250 index fund invests in companies present in the index it is tracking. This may allow investors to diversify their portfolio across sectors. However, these are all small cap companies; investors cannot gain the potential benefits of diversification across market capitalisation.
How to invest in Bandhan Nifty Smallcap 250 Index Fund?
To invest in Bandhan Nifty Smallcap 250 Index fund click the “Invest Now” button. Fill in the required information and complete the KYC.