Bandhan MF launches Nifty Next 50 Index Fund for growth-focused investors

Index will give investors access to 'well-established companies in high-growth phase', says fund house

Bandhan Mutual Fund has launched an open-ended scheme that tracks the Nifty Next 50 Index. New fund offer (NFO) for the Bandhan Nifty Next 50 Index Fund opened on Thursday and it will close on February 25

 

This index comprises the 50 companies ranked immediately beyond the Nifty 50, representing India’s top 100 listed stocks. While these companies are classified as largecaps, they exhibit mid and smallcap-like growth potential and are an attractive investment avenue for investors seeking long-term wealth creation, said the company in a press statement.

 

“The Nifty Next 50 Index provides investors access to well-established companies that are still in their high-growth phase. Spanning sectors such as consumer discretionary, FMCG, IT, and more, the index includes industry disruptors with noteworthy potential,” said Vishal Kapoor, chief executive officer of Bandhan AMC.

 

 

“Over the past nine years, 24 companies from this index have moved into the Nifty 50, reinforcing it as a launch pad for potential future market leaders. Historically, it has outperformed the Nifty 50 across multiple market cycles,” he said.

 

“With the recent market correction pushing the index down over 20 per cent and trading below its five-year average, past trends suggest that such phases have often been followed by strong recoveries.  The Bandhan Nifty Next 50 Index Fund provides investors with an opportunity to participate in this segment’s long term growth potential at an opportune time.”

 

The Nifty Next 50 Index is rebalanced semi-annually in March and September and follows a free float market capitalisation-based weighting methodology.

 

More about Bandhan Nifty Next 50 Index Fund

 

Objective: The scheme will replicate the Nifty Next 50 Index by investing in securities of the Nifty Next 50 Index in the same proportion/ weightage with the aim of providing returns before expenses that track the total return of Nifty Next 50 Index, subject to tracking errors. There is no assurance or guarantee that the objectives of the scheme will be realised, said the company.

 

Scheme type: Open ended

 

Scheme category: Other scheme - Index Funds

 

Indicate load separately: 0.25 per cent if redeemed on or before 15 days from the allotment date Nil if redeemed after 15 days from the allotment date.

 

Minimum subscription amount: Rs 1000 and in multiples of Re 1 thereafter

 

Nemish Sheth will manage the fund.

 

Who should invest?

 

The Bandhan Nifty Next 50 Index Fund is suited for investors seeking a large-cap strategy with higher risk and return potential, according to the company.

 

Bandhan Life Insurance has separately launched Flexi Cap Fund, with Bandhan Life iInvest II and iInvest Advantage ULIPs (unit-linked insurance plans). The new fund is open till February 24 and starts at just Rs 10 NAV.

 

Bandhan Life’s iInvest II and iInvest Advantage are ULIP products that provide market-linked returns along with a life cover of up to 20 times the annual premium. With monthly premiums starting at just Rs 3,000, these plans offer flexibility, allowing customers to tailor their investment strategies to their specific needs. Additionally, policyholders can access their funds through partial withdrawals after five years.