Bandhan Mutual Fund files draft documents for two index funds

Bandhan Mutual Fund has filed draft documents with Sebi for two index funds: Bandhan Nifty Total Market Index Fund and Bandhan Nifty Microcap 250 Index Fund.

Bandhan Nifty Total Market Index Fund
Bandhan Nifty Total Market Index Fund will be an open-ended scheme tracking Nifty Total Market Index.


The investment objective of the scheme is to replicate the Nifty Total Market Index by investing in securities of the Nifty Total Market Index in the same proportion / weightage with an aim to provide returns before expenses that tracks the total return of Nifty Total Market Index, subject to tracking errors.

The scheme will be benchmarked against Nifty Total Market Index TRI. The scheme will invest 95-100% in securities belonging to the Nifty Total Market Index (including stock & index derivatives) and 0-5% in debt & money market instruments.

The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions from the scheme.

Bandhan Nifty Microcap 250 Index Fund
Bandhan Nifty Microcap 250 Index Fund will be an open-ended scheme tracking Nifty Microcap 250 Index.

The investment objective of the scheme is to replicate the Nifty Microcap 250 Index by investing in securities of the Nifty Microcap 250 Index in the same proportion / weightage with an aim to provide returns before expenses that tracks the total return of Nifty Microcap 250 Index, subject to tracking errors.

The scheme will be benchmarked against Nifty Microcap 250 Index TRI. The scheme will invest 95-100% in securities belonging to the Nifty Microcap 250 Index (including stock & index derivatives) and 0-5% in debt and money market instruments.

The minimum application amount for both the schemes will be Rs 1,000 and in multiples of Re 1 thereafter. The schemes will be managed by Nemish Sheth. The schemes will offer regular and direct plans with both growth and IDCW options.