What is Bandhan Nifty Midcap 150 Index Fund?
The Bandhan Nifty Midcap 150 Index Fund is an open-ended scheme that tracks the Nifty Midcap 150 Index. It invests in 150 mid-sized companies, providing diversified exposure to various sectors integral to India’s economic growth, suitable for investors seeking balanced growth potential in their portfolios.
Bandhan Nifty Midcap 150 Index Fund Launch Date
The Bandhan Nifty Midcap 150 Index Fund was launched on 3rd September 2024.
Check out other Upcoming NFOs in September here: Upcoming NFO – List of NFO coming in September 2024
Bandhan Nifty Midcap 150 Index Fund Investment Objective
The Scheme’s investment objective is to mirror the Nifty Midcap 150 Index by investing in its constituent securities in identical proportions. It aims to deliver returns, before expenses, that track the Nifty Midcap 150 Index, although it does not guarantee achieving this objective or any returns.
Bandhan Nifty Midcap 150 Index Fund Strategy
The Bandhan Nifty Midcap 150 Index Fund (G) employs a passive strategy, closely tracking the Nifty Midcap 150 Index. By investing in the same stocks in identical proportions as the index, the fund offers investors exposure to 150 mid-sized companies across various sectors of the Indian economy.
Bandhan Nifty Midcap 150 Index Fund Risks
The main risks associated with investing in the Bandhan Nifty Midcap 150 Index Fund (G) include:
- Market Volatility: The fund is exposed to market risks as it invests in equities, with potential fluctuations in value due to economic, political, or regulatory factors.
- Midcap Volatility: Midcap stocks are generally more volatile than large-cap stocks, leading to larger price swings and increased short-term risk.
- Liquidity Concerns: Midcap companies often have lower trading volumes, which can create liquidity risks, making it difficult to buy or sell shares during market stress.
- Tracking Errors: The fund’s performance may slightly deviate from the Nifty Midcap 150 Index due to transaction costs, cash holdings, and fees, impacting overall returns.
- Sector Concentration: The fund’s exposure to concentrated sectors within the midcap segment may pose risks if those sectors underperform, potentially affecting the fund’s performance.
Who should invest in Bandhan Nifty Midcap 150 Index Fund?
Investors seeking diversified exposure to mid-sized Indian companies with high growth potential should consider the Bandhan Nifty Midcap 150 Index Fund. It’s ideal for those with a long-term investment horizon, looking for cost-effective, passive management, and willing to accept moderate to high market volatility.
How to invest in Bandhan Nifty Midcap 150 Index Fund?
To invest in the Bandhan Nifty Midcap 150 Index Fund, follow these steps:
1. Open a Demat Account: Ensure you have a Demat account with any Brokerage firm.
2. Log in to Your Account: Access your brokerage platform.
3. Select the Fund: Search for “Bandhan Nifty Midcap 150 Index Fund” in the mutual funds section.
4. Choose Investment Mode: Decide between a lump sum or Systematic Investment Plan (SIP).
5. Complete the Purchase: Enter the investment amount and confirm the transaction.
Once completed, your investment will be processed, and the units will be allocated accordingly.
