NFO Tracker: Bandhan Mutual Fund launches Nifty Midcap 150 Index Fund

Bandhan Mutual Fund has launched Bandhan Nifty Midcap 150 Index Fund, an open-ended scheme tracking Nifty Midcap 150 Index.

The new fund offer or NFO is open for subscription and will close on September 13. The scheme will reopen for continuous sale and repurchase on September 20.

The objective is to replicate the Nifty Midcap 150 Index by investing in securities of the index in the same proportion/weightage. This is meant to provide returns before expenses that tracks the total return of Nifty Midcap 150 Index, subject to tracking errors.


The scheme will be benchmarked against Nifty Midcap 150 TRI and managed by Nemish Sheth.

It will allocate 95-100% in securities belonging to the Nifty Midcap 150 Index (including stock & index derivatives) and 0-5% in debt and money market instruments.

The scheme will offer regular and direct plans with growth options only. An exit load of 0.25% is 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 maximum total expenses ratio (TER) permissible under Regulation 52 (6) (c) is up to 1%.

The minimum investment amount for lump sum purchase is Rs 1,000 and in multiples of Re 1 thereafter. For SIP, the minimum investment amount is Rs 100 and in multiples of Re 1 thereafter with a minimum of six instalments. For STP, the minimum amount is Rs 500 and any amount thereafter.

The corpus of the scheme, which will be passively managed, will be invested primarily in stocks constituting Nifty Midcap 150. A portion of the scheme will be kept liquid to meet the redemption requirements and align with the Sebi regulations.