Bandhan Nifty100 Low Volatility 30 Index Fund - Direct Plan
Index Fund - An open-ended scheme tracking Nifty100 Low Volatility 30 Index
What is a Nifty 100 Low Volatility 30 Index Fund?
Imagine having a dependable friend who always stays calm and collected, no matter how chaotic things get. That’s what the Nifty 100 Low Volatility 30 Index Fund is like for your investments. This fund focuses on the 30 least volatile stocks on the National Stock Exchange, aiming to offer a smoother ride through market ups and downs. It's designed to keep your investments relatively stable, even in turbulent times.
The Nifty 100 Low Volatility 30 Index Fund is an open-ended scheme that tracks the performance of the Nifty 100 Low Volatility 30 Index, which comprises the 30 least volatile stocks on the National Stock Exchange. Because these stocks are inherently less volatile, the fund is relatively insulated from market fluctuations.
Nifty Low Volatility 30 Index Funds are not diversified across asset classes or market capitalizations, as they invest primarily in the equities of top companies on the National Stock Exchange. While the fund is less exposed to market volatility, the lack of diversification can increase risk.
The fund has a clear mandate regarding the equities it can invest in, which reduces the likelihood of errors or biases. However, since it focuses on well-established, low-volatility companies, the fund's growth potential may be limited, impacting potential returns.
Units held for less than one year are subject to Short-Term Capital Gains Tax (STCG) at 15%. Capital gains exceeding ₹1,00,000 on units held for more than a year are subject to Long-Term Capital Gains Tax (LTCG) at 10%.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
Nil
Scheme is suitable for a minimum investment horizon of 3 years
Tier 1 Benchmark : Nifty100 Low Volatility 30 TRIAlternate Benchmark : Nifty 50 TRI
- Performance
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Performance as on 31st October 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 06/10/2022 Since inception | 1 year | 3 year | 5 year | 10 year | 06/10/2022 Since inception | |
| Bandhan Nifty 100 Low Volatility 30 Index Fund - Regular Plan - Growth | 31.83 | N.A. | N.A. | N.A. | 22.07 | 13,193 | N.A. | N.A. | N.A. | 15,115 |
| 33.92 | 16.12 | 18.52 | 14.65 | 23.99 | 13,403 | 15,677 | 23,409 | 39,294 | 15,611 | |
| 28.30 | 12.35 | 16.61 | 12.62 | 18.82 | 12,839 | 14,195 | 21,582 | 32,844 | 14,294 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Nemish Sheth (w.e.f 06/10/2022)
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 Nifty100 Low Volatility 30 Index Fund
(Scheme Risk-o-meter)
Nifty100 Low Volatility 30 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 Nifty100 Low Volatility 30 Index.
Who Should Invest in a Nifty100 Low Volatility 30 Index Fund?
This fund is suitable for investors looking for low-volatility equity investments and potential long-term wealth creation. Investors seeking broad diversification across market capitalizations or asset classes may find this fund unsuitable.
While this Nifty100 Low Volatility 30 Index fund aims to minimize market volatility by focusing on low-volatility stocks, it is still subject to risks like tracking errors. Additionally, the lack of diversification can pose risks. This fund is better suited for investors with a high-risk appetite seeking long-term stability.
Since index funds replicate, rather than outperform, the index, this fund may not be suitable for investors looking to beat the Nifty 100 Low Volatility 30 Index.
FAQs on Nifty100 Low Volatility 30 Index Fund
What is the Nifty100 low volatility 30 index?
The Nifty100 Low Volatility 30 Index tracks the performance of 30 low-volatile stocks in the Nifty 100. Weights of securities are assigned on the basis of the volatility. The lower the volatility of a security, the higher the weight assigned.
What are low-volatility index funds?
Low-volatility index funds attempt to track the performance of securities with the least volatility on a particular index. For example, Nifty100 low volatility funds track the performance of the least volatile funds on the Nifty100 index.
Why invest in low-volatility?
Allocating a portion of a portfolio to low-volatility allows investors to diversify their portfolio and potentially mitigate risk. While lower volatility is often associated with lower returns, a diversified portfolio may potentially help mitigate risk.
What are the benefits of low-volatility?
Investors may potentially be able to mitigate risk by investing in low-volatility assets. Low volatility index funds allow investors to potentially preserve capital during market downturns in the long term. Investors may also benefit by reducing their portfolio volatility and potentially improving their risk-reward ratio.
Are Nifty 100 low vol 30 index funds safe?
All mutual funds are subject to some risks. While Nifty100 low volatility 30 index funds attempt to mitigate market volatility by investing in less volatile stocks, as an index fund they are subject to tracking errors. Moreover, these funds are not a diversified investment. The lack of diversification may increase the risk level. Bandhan Nifty100 Low Volatility 30 Index Fund is categorised as a high-risk investment option.