NFO Alert: Bandhan Mutual Fund launches Nifty 200 Quality 30 Index Fund

Bandhan Mutual Fund has launched Bandhan Nifty 200 Quality 30 Index Fund, an open-ended scheme tracking Nifty 200 Quality 30 Index.

The new fund offer or NFO of the scheme is open for subscription and will close on November 29. The scheme will reopen for continuous sale and repurchase on December 5.

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The investment objective of the scheme is to replicate the Nifty 200 Quality 30 Index by investing in securities of the Nifty 200 Quality 30 Index in the same proportion / weightage with an aim to provide returns before expenses that track the total return of Nifty 200 Quality 30 Index, subject to tracking errors.

The scheme will be benchmarked against Nifty 200 Quality 30 Index. The scheme will be managed by Nemish Sheth.

The minimum amount for lumpsum purchase is Rs 1,000 and in multiples of Re 1 thereafter. For SIP, the minimum application amount is Rs 100 and in multiples of Re 1 thereafter with minimum six installments.

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An exit load of 0.25% will be applicable, if redeemed on or before 15 days from the allotment date. The exit load will be nil, if redeemed after 15 days from the allotment date.

The scheme will allocate 95-100% in securities belonging to the Nifty 200 Quality 30 Index (including stock and index derivatives) and 0-5% in debt and money market instruments.

The scheme will be managed passively with investments in stocks in a proportion to the weights of these stocks in the Nifty 200 Quality 30 Index. The investment strategy would revolve around reducing the tracking error through rebalancing of the portfolio, considering the change in weights of stocks in 14 the index as well as the incremental collections/redemptions from the scheme.

The scheme is suitable for investors who are seeking to create wealth over a long term and want investment in equity and equity related instruments belonging to Nifty 200 Quality 30 Index. The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme.

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