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Home >> Blog >> Bandhan Nifty Next 50 Index Fund NFO: Review, Date & NAV

Bandhan Nifty Next 50 Index Fund NFO: Review, Date & NAV

  


Bandhan Nifty Next 50 Index Fund NFO: Overview

Bandhan Mutual Fund has presented the Bandhan Nifty Next 50 Index Fund NFO which is an open-ended scheme that tracks the performance of the Index. The index is made up of additional 50 companies that follow the Nifty 50 ranked and provide large capital exposure with growth opportunities similar to mid and small caps.

The Nifty Next 50 Index is maintained and calculated using the Free Float Market Capitalisation-based weighting system. The index is also reconstituted in March and September every year. The Bandhan Nifty Next 50 Index Fund is meant for those investors who are seeking a large-cap strategy and are willing to accept a higher level of risk and expect higher returns.

 

Bandhan Nifty Next 50 Index Fund: Details

The NFO is priced at Rs.1000 and in multiples of Rs.1 thereafter. The asset allocation strategy is concentrated on investing 95-100% in securities that are part of the Nifty Next 50 Index, which includes index derivatives and stocks, and 0-5% in debt & Money Market instruments. 

 

Fund Objective

The investment objective of the Bandhan Nifty Next 50 Index Fund is to replicate the Nifty Next 50 Index by investing in its securities in the same proportion and weighting, to generate returns before expenditures that, subject to tracking mistakes, mirror the index's overall return.

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Fund Overview

Start Date

13 Feb 2025

End Date

25 Feb 2025

Allotment Date/Subscription Date/Re-open Date

03 Mar 2025

VRO Rating

-

Expense Ratio

NA

Exit Load

0.25% if redeemed within 15 Days

AUM 

Rs.137193.31 Cr.

Lock-in

NA

Stamp Duty

0.005% (From July 1st 2020)

Benchmark(s)

Nifty Next 50 Index

Min. Investment

Rs.1000

Risk

Very High Risk

Taxation

(Source: SID)

 

How to Invest in the Scheme After the Closure of the NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on Mar 03, 2025, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Bandhan Nifty Next 50 Index Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

 

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Types of Instruments

Minimum Allocation (% of Total Assets)

Maximum Allocation (% of Total Assets)

Securities that are part of the Nifty Next 50 Index, which includes index derivatives and stocks

95

100

Debt & Money Market instruments. 

0

5

 

Peers of Bandhan Nifty Next 50 Index Fund

Scheme

1Y Return

AUM (Rs.) / Fund Size (Rs.)

Motilal Oswal Nifty Next 50 Index Fund Regular 

2.97%

Rs.297.39 Cr

ICICI Prudential Nifty Next 50 Index Fund

3.05%

Rs.6,616.28 Cr

 

Risk Factors in Such Funds

  • Corporate bonds may be extremely difficult to take off in times of heightened uncertainty. Even government securities would suffer from their hyper-volatility or their limited volumes in the market.

  • The scheme, however, may not perform in line with its underlying index due to fund expenses, corporate actions, regulatory policies, and market conditions, with this term as a tracking error.

  • Using derivatives, as such, will bring with it other risks, the dissimilarity being mispricing, improper valuation, and the failure of the counterparty to perform. These, by implication, tend to be different and more than traditional investments.

  • This occurs on account of failing to pay interest or repaying a fixed-income security's principal amount. Even in the absence of default, a degradation in the credit rating may work to decrease the price of that security.

 

Past Performance of Nifty Next 50 Index Funds

Scheme

NAV (Rs.)

Annualised Return

Risk

Motilal Oswal Nifty Next 50 Index Fund Regular 

20.49

2.97%

Very High

ICICI Prudential Nifty Next 50 Index Fund

52.26

3.05%

Very High

 

Bandhan Nifty Next 50 Index Fund - Fund Managers

  • Mr. Nemish Sheth.

 

Conclusion

The Bandhan Nifty Next 50 Index Fund is a suitable investment for those desiring exposure to large caps that may show growth levels comparable with mid and small-cap stocks. It closely tracks the Nifty Next 50 Index to provide long-term returns but also invites high risks through market changes and tracking errors. Thus, there is a need to understand your risk level before investing.

Disclaimer: Not a buy or sell recommendation. No investment advice is given. Future returns are not guaranteed by past returns. This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.



Frequently Asked Questions

+

13 Feb 2025 is the opening date of this NFO.
 

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You can apply for NFO via online platforms such as AMC’s website, and channel partner website, by filling out an application form, and the mobile apps of Fund House.

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NAV expands as Net assets Value.



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