Bandhan Nifty200 Momentum 30 Index Fund - Direct Plan
Bandhan Nifty200 Momentum 30 Index Fund - Direct Plan
An open-ended scheme tracking Nifty200 Momentum 30 Index
What is a Nifty 200 Momentum 30 Index Fund?
Bandhan Nifty 200 Momentum 30 Index fund, is an open-ended scheme which tracks the performance of the thirty high momentum stocks that are part of the Nifty 200 index. The momentum score for each stock is based on the recent six-month and twelve-month price returns that are adjusted for volatility. The top 30 stocks with the highest normalised momentum score are included in the Nifty 200 Momentum 30 Index. The weight of each stock is determined by the momentum index and free-float market capitalisation.
According to the mandate, 95% of the fund's corpus has to be invested in equities present in the Nifty 200 index. Stocks present in the Nifty 200 index are mid and large-cap stocks. Consequently, Nifty 200 Momentum 30 Index funds allow the investor to diversify their investment across two market capitalisations. Although the fund's assets are relatively diverse, this fund is categorised as a high-risk investment option.
Like most index funds, there is a defined mandate that specifies the types of equities a Nifty 200 Momentum 30 index fund can invest in. As a result, the likelihood of errors and biases is significantly reduced.
Nifty 200 Momentum 30 index funds are taxed similarly to other index funds. Units held for less than 12 months are subject to STCG tax at 15%. LTCG tax is levied on gains above ₹1,00,000 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 : Nifty200 Momentum 30 TRIAlternate Benchmark : Nifty 50 TRI
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Performance as on 28th March 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 02/09/2022 Since inception | 1 year | 3 year | 5 year | 10 year | 02/09/2022 Since inception | |
| Bandhan Nifty 200 Momentum 30 Index Fund - Regular Plan - Growth | 71.89 | N.A. | N.A. | N.A. | 32.85 | 17,214 | N.A. | N.A. | N.A. | 15,620 |
| 74.67 | 29.44 | 23.77 | 23.74 | 34.97 | 17,494 | 21,734 | 29,084 | 84,316 | 16,013 | |
| 33.11 | 16.75 | 15.37 | 14.16 | 17.64 | 13,322 | 15,935 | 20,451 | 37,653 | 12,906 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Nemish Sheth (w.e.f 02/09/2022)
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 Nifty200 Momentum 30 Index Fund
(Scheme Risk-o-meter)
Nifty200 Momentum 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 Nifty200 Momentum 30 Index.
Who Should Invest in Momentum Index Funds?
Nifty 200 Momentum 30 Index funds are mandated to invest at least 95% of its corpus in equities, making it a suitable option for investors seeking long-term wealth creation by investing in equities. This fund may not be suitable for investors with a short-term investment horizon or investors seeking capital preservation.
Momentum mutual funds are a high-risk investment option and are suitable for investors with a higher risk tolerance. Like most index funds, they are subject to tracking errors. Lastly, momentum index funds are susceptible to credit risk, interest rate risk and settlement risk.
Index funds, such as the Nifty200 Momentum 30 Index fund, aim to replicate a particular index, not outperform it. Investors seeking to outperform this index may not benefit from investing in this fund.
FAQs on Nifty200 Momentum 30 Index Funds
What is a momentum fund?
A momentum fund is an investment scheme that invests in momentum stocks. In India, the momentum score for each stock is based on the recent six-month and twelve-month price return that is adjusted for volatility.
What is the meaning of the Nifty 200 momentum 30 index?
The Nifty 200 Momentum 30 index tracks the performance of 30 high-momentum stocks as part of the Nifty 200 index. These stocks belong to large and mid-cap companies.
What are the benefits of momentum index funds?
Momentum index funds track a particular index. In India, the momentum score for each stock is based on the recent six-month and twelve-month price returns. These funds can thus adapt to market conditions. Moreover, investments in momentum funds may allow investors to diversify their portfolios and potentially mitigate risk. Lastly, momentum index funds returns may potentially be significant.
Are momentum index funds risky?
Like all mutual funds, momentum mutual funds are subject to certain risks; they are categorised as high-risk investment options. As an index fund, momentum funds are inherently vulnerable to tracking errors. The returns may also be impacted by a general decline in the stock market. Momentum funds are subject to credit risk, interest rate risk and settlement risk.
Is momentum investing for the long term?
Momentum funds are a suitable long-term investment option. Momentum funds attempt to invest in stocks, showing an upward trend in the long term. These funds are suitable for investors seeking long-term wealth creation.