Bandhan Nifty100 Low Volatility 30 Index Fund - Direct Plan

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Bandhan Nifty100 Low Volatility 30 Index Fund - Direct Plan

Index Fund - An open-ended scheme tracking Nifty100 Low Volatility 30 Index

ETF/IndexInception Date:06/10/2022
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What is a Nifty 100 Low Volatility 30 Index Fund?

A Nifty Low Volatility 30 Index Fund is an open-ended scheme. As an index fund, this fund tracks the Nifty100 low volatility 30 index and attempts to replicate its performance. This index tracks the performance of the 30 least volatile stocks listed on the National Stock Exchange. As these stocks are inherently less volatile, the fund is relatively less vulnerable to market volatility and fluctuations.

Nifty Low Volatility 30 Index Funds are not a diversified investment option across asset classes or market cap. They are predominantly invested in equities of the top companies listed on the National Stock Exchange. Although the fund is relatively less vulnerable to volatility, the lack of diversification makes this fund a high-risk investment option.

There is a defined mandate regarding the equities a Nifty100 Low Volatility 30 Fund can invest in. Consequently, the likelihood of errors or biases is significantly reduced. However, a Nifty 100 Low Volatility 30 fund invests in well-established and large companies, the growth potential of the fund may potentially be reduced which may potentially impact returns.

Units held for less than one year are subject to Short-Term Capital Gains Tax (STCG) at 15%. Capital gains over ₹1,00,000 made after a year are subject to Long-Term Capital Gains Tax at 10%.

  • Min Investment 1,000
  • Min SIP Amount 100
  • Exit Load

    Nil

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Annualised Returns(as on 31st Mar, 2024)38.14%1yrN.A.3yrN.A.5yr
NAV 13.5882 as on 16/04/20241 Day Change: -0.04(-0.27%)

Scheme is suitable for a minimum investment horizon of 3 years

Tier 1 Benchmark : Nifty100 Low Volatility 30 TRIAlternate Benchmark : Nifty 50 TRI

Performance as on 29th February 2024

Scheme NamesCAGR Returns (%)Current value of Investment of 10,000
1 year3 year5 year10 year06/10/2022 Since inception1 year3 year5 year10 year06/10/2022 Since inception
Bandhan Nifty 100 Low Volatility 30 Index Fund - Regular Plan - Growth38.14N.A.N.A.N.A.25.9913,826N.A.N.A.N.A.13,819
41.0619.9118.2517.3628.0614,11917,26923,14349,65114,138
28.4016.1216.6414.7319.6712,84915,67521,60339,57012,859
^ 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/3spfzbo

Bandhan Nifty100 Low Volatility 30 Index Fund

(Scheme Risk-o-meter)

Investors understand that their principal will be at Very High Risk.

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?

Investors seeking investments in equities with low volatility are suitable for this fund. As this fund invests primarily in equities, it may be suitable for investors seeking long-term wealth creation.

Investors seeking diversification of their investments may not be suitable for a Nifty Low Volatility 30 Index Fund. This fund does not diversify its assets across market caps or asset classes.

Although the Nifty100 Low Volatility 30 Index fund may potentially avoid market volatility by investing in relatively less volatile stocks, it is primarily an index fund and is subject to risks such as tracking errors. Moreover, the lack of diversification in the fund increases the risk level of the fund. This fund is suitable for investors with a high-risk appetite.

Index funds aim to replicate the index they are tracking and not outperform it. Consequently, investors seeking to outperform the Nifty100 low volatility 30 index may not benefit from this scheme.

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.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.