Bandhan Mutual Fund Launches Nifty Next 50 Index Fund Nfo: Bandhan Mutual Fund has announced to launch a new index fund. The subscription in this NFO, presented as Nifty Next 50 Index Fund, has started today i.e. from February 13. It is an open-end index fund, which will track the Nifty Next 50 index. That is, by subscribing in this NFO, investors will get an opportunity to invest in 50 companies outside Nifty 50, which are considered to be included in the queue of joining the Nifty 50. The Nifty Next 50 index covers 50 companies that are out of the NIFTY 50 index but are among the top 100 companies in the country.
NFO’s specialty and investment strategy
The purpose of this new fund of Bandhan Mutual Fund is aimed at investing the same ratio in the shares of companies involved in the Nifty Next 50 Total Return Index (NIFTY Next 50 Total Return Index) in which they are given a place in this index. That is, the return of this fund will follow the total return of this index. The manager of the fund is Namish Sheth, but due to having a passive fund, there will be no active fund management, but it will follow the index completely. CEO Vishal Kapoor of Bandhan Mutual Fund says that through NIFTY Next 50 Index, investors get an opportunity to invest in high growth potential companies. Also, companies involved in this index are likely to be a part of NIFTY 50 later. “
Also Read: Home Loan Rate Cut: EMI of your home loan, these major banks decrease interest rate, impact of RBI’s decision
Necessary information related to NFO
Subscription opening date in NFO: 13 February 2025
Subscription discontinuation date in NFO NFO: 25 February 2025
Last lump sum investment: Starts from Rs 1,000
At least SIP Investment: Starting at Rs 100 (at least 6 installments)
Exit load: 0.25% exit load on redemption within 15 days, followed by no charge
Re-opening of scheme: 3 March 2025
Also Read: New Income Tax Bill 2025: 10 big things of new income tax bill, tax slab, TDS to tax filing deadline, what is new?
Why is Nifty Next 50 Index special?
Nifty Next 50 Index includes 51 to 100th rank companies in the top 100 companies in India. This index also indicates which companies of the market are likely to join the top 50 in the coming days. During the last 9 years, 24 companies of this index have also joined NIFTY 50.
This index consists of large companies of many important sectors including FMCG, IT, Consumer Discretionary, Healthcare. Therefore, there is a hope of getting full benefit of diversification on investing in it. This index has performed better in many market bicycles than NIFTY 50. Recently, due to the decline of up to 20% in the market, this index is trading below its 5 -year average, which can be the right time to invest in it.
Also Read: Negative Return: These equity funds gave negative returns from 17 to 22% in 6 months, many veteran fund houses include schemes
Which investors are right for this fund?
This fund can be a better option for those investors who want to create wealth by investing for a longer period and intend to invest in emerging companies other than big companies. Since it is an index fund, its expansion ratio will also be low, which can be the right choice for investors investing at low cost. Investors who want to invest in stocks with more growth potential than big companies, but this fund can also prove to be right for them.
Also Read: Stable Return: Stable returns between market turmoil, this is the quality of multi asset funds, how was the condition of top schemes in 1 and 5 years
Should you invest in this NFO?
If you want growth in long periods by investing in low -cost index funds and want to invest in potential leading companies out of Nifty 50, then the bond Nifty Next 50 Index Fund can be a good option. However, due to the equity fund, the market turmoil will have a full impact on it and that is why this fund has been given a rating of very high risk on the roster. Therefore, investors should decide only keeping in mind their ability to take their risk, investment duration and economic goal.
(Disclaimer: The purpose of this article is just to give information, do not recommend investing in a scheme. Any investment decision should be made only after getting complete information about the scheme and taking the opinion of the Investment Advisor.)
