Bandhan Nifty Smallcap 250 Index Fund
Unlock Big Wins with Small Caps
- Small caps are emerging businesses with growth potential.
- These stocks are ranked 251-500 from the top 500 based on total market capitalization.
- Given its high growth potential, Small caps offer enticing investment opportunities.
Source/Disclaimer: Data as on 30th November 2023. Small cap definition based on NSE Methodology. For detailed index methodology, click here. The above chart is used to explain the concept and is for illustration purpose only. It should not be used for the development of investment strategy.
Small Caps: Industry Agnostic
Small caps are not confined to a particular industry/sector and could belong to multiple industries like auto components, hospitality, capital markets, chemicals, etc. Many Small caps eventually grow into Mid or Large caps, thereby presenting a lucrative opportunity for savvy investors to benefit from this growth trajectory.
Source/Disclaimer- NSE, AMFI classification. Data as of 30th November 2023. Industry/Sub-industry classification based on industry classification by AMFI. The industry/sub-industry mentioned above is for illustration purposes only and should not be used for the development/implementation of investment strategy. It may not be construed as investment advice to any party.
Small Caps: Multibagger Potential
- India has delivered the highest proportion of multibaggers (10x returns)**.
- A whopping 70% of these are Small caps.
- Historically speaking, most multibaggers have typically emerged from Small caps.
Source/Disclaimer: Goldman Sachs- Investing in India’s medium-term growth story; Identifying potential multi-baggers. Data basis latest report as of 01st June 2023. *Definition as per GS. Performance results may have inherent limitations, and no representation is being made that any investor will or is likely to achieve. Past performance may or may not be sustained in the future.
Small Caps: Historical Outperformance
- Since 2005 (19 years), Small caps have outperformed Large and Mid caps 9 out of 19 times.*
- In the same period, Large and Mid caps have outperformed 7 and 3 out of 19 times, respectively.
- Small caps tend to outperform during strong bull markets.
Source/Disclaimer: Bandhan MF. NSE. Data as of 30th November 2023. Performance for Large Cap represented by Nifty 50 TRI, Mid Cap by Nifty Midcap 150 TRI, and Small Cap by Nifty Smallcap 250 TRI. Performance results may have inherent limitations, and no representation is being made that any investor will or is likely to achieve. Past performance may or may not be sustained in the future.
Nifty Smallcap 250 Index Methodology
Source/Disclaimer- As of 30th November 2023. For detailed methodology, please click here.
True to Label Small Caps Exposure
- The Index Fund exclusively comprises Small cap stocks, providing investors with 100% exposure to this segment - remaining true to its label.
- This may not always hold true for Small cap active funds which may have exposure to Large and Mid cap stocks.
Source/Disclaimer- NSE, AMFI. Data as of 30th November 2023. Size classification as per AMFI classification. *Few midcaps seen in the Nifty Smallcap 250 Index are primarily due to different rebalancing cycles and stock buffers applied as per index methodology. The charts shown above are for illustration purposes and should not be used for the development/implementation of an investment strategy. It may not be construed as investment advice to any party.
Secure Approach and Potentially Better Gains
- Over the last year ending Nov 30, 2023, actively managed Small cap funds have shown returns between ~42% and ~15%.
- Whereas, the Nifty Smallcap 250 Index has delivered a ~33% return, indicating a solid performance.
Source/Disclaimer: ACEMF. Data as of 30th November 2023. *Small Cap universe as defined by NSE Methodology. For detailed index methodology, please click here. The return variability is basis 1-year CAGR for active small cap schemes. The above chart is used to explain the concept and is for illustration purposes only. It should not be used for the development of investment strategy. Performance results may have inherent limitations, and no representation is being made that any investor will or is likely to achieve. Past performance may or may not be sustained in the future.
Diversified Exposure and Strategic Advantage
The Nifty Smallcap 250 Index provides exposure across diverse sectors, which reduces dependency on specific stocks. The diversified exposure enhances overall portfolio resilience and offers potential stability to the investment strategy.
Source/Disclaimer: NSE, AMFI. Data as of 30th November 2023. Macroeconomic sector classification as per AMFI classification. The sectors/stocks mentioned herein are only f or illustrative purposes. They should not be construed as a recommendation from Bandhan Mutual Fund or indicative portfolio of any scheme of Bandhan Mutual Fund. Bandhan Mutual Fund may or may not hold any position in these sectors/stocks. The portfolio of the fund would depend on asset allocation and investment strategy as stated in the Scheme Information Document and market conditions at the time of investment.
Consider Investing in this Fund if…
You're in the early stages of your career, in your first or second job, and can invest a modest amount monthly through SIP, with the option for SIP top-up (annual increase in SIP amount).
You're saving for your child's education and can invest a lumpsum or start a SIP.
You have a lumpsum amount, a risk appetite, and a long-term investment horizon.
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Make an informed decision. Learn more about investing in Bandhan Nifty Smallcap 250 Index Fund
Fund Facts
Type of Scheme
An open-ended scheme tracking the Nifty Smallcap 250 Index
NFO Period
12th - 19th December 2023
Benchmark
Nifty Smallcap 250 TRI
Fund Manager
Mr. Nemish Sheth
Minimum Investment
During New Fund Offer
₹ 1,000
And in multiples of Rs. 1/- thereafter
Exit Load
Nil
Plans/Options
Regular/Direct Plan: Growth Option and Income Distribution cum capital withdrawal Option^
Investment Objective
The investment objective of the Scheme is to replicate the Nifty Smallcap 250 index by investing in securities of the Nifty Smallcap 250 Index in the same proportion/weightage with an aim to provide returns before expenses that closely correspond to the total return of Nifty Smallcap 250 Index, subject to tracking errors. However, there is no assurance or guarantee that the objectives of the scheme will be realised, and the scheme does not assure or guarantee any returns.
Fund Manager
Nemish Sheth
Associate Vice President - Equities
Nemish Sheth, AVP - Equities, Bandhan AMC
With over a decade of experience in fund management, Nemish Sheth leads the Bandhan Nifty Smallcap 250 Index Fund. His seasoned career includes pivotal roles at Nippon AMC and ICICI Prudential AMC, where he served as a dealer for Equity, Derivative, and Passive Funds. Sheth is a post-graduate in Management Studies with a specialisation in Finance from IES Management College (Mumbai).
Product info
Bandhan Nifty Smallcap 250 Index Fund
(An open-ended scheme tracking Nifty Smallcap 250 Index)
This product is suitable for investors who are seeking*:
- Create wealth over a long term
- Investment in equity and equity related instruments belonging to Nifty Smallcap 250 Index
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
