Bandhan AMC targets Top Nifty 200 companies in NFO: Should you invest?

Bandhan Mutual Fund on Monday launched an open-ended index fund scheme that tracks the Nifty 200 Quality 30 Index. 

 

Termed as the 'Nifty 200 Quality 30 Index Fund, the scheme offers investors access to 30 high-quality companies within the Nifty 200 universe, selected based on key financial metrics such as Return on Equity (ROE), Debt-to-Equity ratio, and Earnings Per Share (EPS). 

 

The fund aims to provide both resilience and growth potential, positioning it as a reasonably attractive option for investors seeking relative stability amid market volatility. 

 

The New Fund Offer (NFO) opened on Monday, November 18, 2024, and closes on Friday, November 29, 2024. 

 

Investments in the Bandhan Nifty 200 Quality 30 Index Fund can be made through licensed mutual fund distributors, online platforms, or directly.

 

 “As economies face increasing headwinds, there is a growing shift towards large-cap, high- quality stocks that offer resilience and stability. Quality stocks, with their solid financial fundamentals, have become a favoured choice, especially in uncertain markets. The Nifty 200 Quality 30 Index targets companies with robust profitability, manageable debt levels, and consistent earnings, aiming to deliver better risk-adjusted returns with lower volatility. Focused on sectors like Consumer Discretionary and FMCG, these companies have historically shown steady performance and smaller declines during global crises, providing investors with potential downside protection. This fund may be ideal for long-term investors aiming for both relative stability and growth potential in today’s evolving landscape," said Vishal Kapoor, CEO, Bandhan AMC.

 

Details about the fund: 

• The fund focuses on companies with higher profitability, lower debt, and more stable earnings.
• Akin to choosing a reliable, time-tested brand known for its relatively consistent performance.
• Replicates the Nifty 200 Quality 30 Index, tracking 30 companies selected based on their Return on Equity, Debt-to-Equity ratio, and variability in Earnings Per Share (EPS) over the previous five years.
• Aims to capture the premium associated with high-quality stocks.

 

Exit Load

0.25% - if redeemed on or before 15 days from the allotment date.

Nil - if redeemed after 15 days from the allotment date

 

Who Should Consider This Fund?

• Ideal for those who prefer a more stable investment route
• Ideal for long-term investors 
• Ideal for those who want to add a defensive but growth-oriented strategy to their portfolio

 

Fund manager: 

Nemish Sheth

Vice President - Equities

Bandhan AMC Limited

Nemish Sheth is a Fund Manager at Bandhan AMC (Erstwhile IDFC AMC) since November 2021. He comes with an experience of over a decade in fund management and Dealing in Equity, Derivatives, and Passive Funds. His prior stint includes Nippon AMC and ICICI Prudential AMC, as Dealer for Equity, Derivative and Passive Funds.