NFO Alert: Bandhan Nifty Midcap 150 Index Fund Opens for Subscription : Bandhan Mutual Fund has launched a new fund offer (NFO). Bandhan Nifty Midcap 150 Index FundSubscription to the new fund offer of this scheme named ‘Open Fund’ opened on Tuesday, September 3, 2024 and will remain open till September 13, 2024. It is an open-ended index scheme, which will track the Nifty Midcap 150 Index. The main objective of this fund is to provide investors with long-term wealth creation opportunities by investing in the midcap segment.
What is special in Bandhan Nifty Midcap 150 Index Fund NFO
1. Opportunity to invest in midcap:Successful companies in the midcap segment are often at a stage in their business where their business is established and they are moving towards rapid growth. The NFO of Bandhan Nifty Midcap 150 Index Fund provides an opportunity to invest in such emerging businesses. The Nifty Midcap 150 Index, which this fund will track, includes midcap companies ranked 101 to 250 in the Nifty 500 Index.
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2. Low-cost investment option:This is a passively managed fund, which provides investors with a low-cost investment option. Since this fund tracks the index, it costs less than active management. Especially if you invest in a direct plan, the cost is even lower.
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Why invest in this Midcap Fund NFO?
1. Midcap index outperformed:Historically, midcap indices have delivered better returns than large cap and small cap indices. For example, Nifty Midcap 150 TRI has delivered an annualised return of 21% over the last 10 years, which is higher than Nifty 50 TRI and Nifty Smallcap 250 TRI.
2. Opportunity to invest in emerging sectors: Through this fund, investors get an opportunity to invest in emerging sectors like financial services, consumer durables, healthcare, and industrial products. This not only increases the possibility of high returns for investors but also diversifies their portfolio.
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For whom is this NFO right
Bandhan Nifty Midcap 150 Index Fund is suitable for those investors who are prepared to invest for the long term. On the riskometer, this scheme is considered a fund with ‘Very High’ risk level. Therefore, only those investors should invest in it who are willing to take more risk to take advantage of the possibility of rapid growth in the midcap segment.
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Key points of NFO
- Subscription period for NFO: September 3, 2024 to September 13, 2024.
- Fund Objective: Wealth creation in the long term by tracking Nifty Midcap 150 Index.
- Minimum Investment (Lump Sum): Rs 1000.
- Minimum Investment (SIP): Rs 100. (Minimum 6 installments)
- Fund Manager: Nemish Sheth
- Exit Load: 0.25% on redemption within 15 days; No charges after 15 days.
- Benchmark : Nifty Midcap 150 TRI
- Risk Level: Very High
Asset Allocation:
– In companies of Nifty Midcap 150 Index: 95% – 100%
– Debt and money market instruments: 0% – 5%
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment in any scheme. Market risk is always associated with equity mutual funds. Take any decision only after getting complete information and taking the advice of your investment advisor.)
