NFO Alert: Bandhan Mutual Fund launches Bandhan BSE India Sector Leaders Index Fund

Bandhan Mutual Fund has announced the launch of the Bandhan BSE India Sector Leaders Index Fund, India’s first index fund to provide investors exclusive access to sector leaders across the economy.

This open-ended scheme will track the BSE India Sector Leaders Index, which identifies the top three companies by market capitalisation from each of the 21 sectors within the BSE 500 Index.

The New Fund Offer (NFO) of the fund will open for subscription on September 3 and will close on September 17. The fund will reopen for continuous sale and repurchase on September 25.


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The investment objective of the scheme is to replicate the BSE India Sector Leaders Index by investing in securities of the BSE India Sector Leaders Index in the same proportion / weightage with an aim to provide returns before expenses that track the total return of BSE India Sector Leaders Index, subject to tracking errors.

The performance of the fund will be benchmarked against BSE India Sector Leaders Index and will be managed by Abhishek Jain.

The fund will offer both regular and direct plans and each plan will offer only growth option. Minimum investment amount for lumpsum purchase is Rs 1,000 and in multiples of Re 1 thereafter. For monthly SIP, the minimum investment amount is Rs 100 and in multiples of Re 1 with minimum six installments.

This passive fund will allocate - 95-100% in securities belonging to the BSE India Sector Leaders Index (including stock and index derivatives) and 0-5% in debt and money market instruments.

“India’s capital markets are undergoing rapid transformation, with established sectors evolving and newer industries emerging as growth drivers. In this backdrop, sector leaders have shown resilience through cycles, lower risk of disruption, and an ability to drive long-term value. With the launch of the Bandhan BSE India Sector Leaders Index Fund, we are proud to introduce India’s first offering that gives investors simple, broad-based access to proven leaders powering the country’s growth story,” said Vishal Kapoor, CEO, Bandhan AMC.

The BSE India Sector Leaders Index is a thematic index that tracks the top 3 companies from each sector of the BSE 500 Index based on Total Market Capitalization. While the BSE Sector Leaders Index draws from 500 stocks, it is largely large-cap heavy.

Historically, the strategy has delivered broad market-like returns with lower volatility. Diversification and market-cap weighting help avoid extreme single-stock bets, enabling potential stability, according to the press release by the fund house.

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The scheme will be managed passively with investments in stocks in proportion to the weights of these stocks in the BSE India Sector Leaders Index. The investment strategy would revolve around reducing the tracking error through rebalancing the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions from the scheme.

The fund is suitable for investors seeking to create wealth over a long-term and want investment in equity and equity related instruments belonging to the BSE India Sector Leaders Index.