Bandhan MF rolls out NFO

Bandhan Mutual Fund has launched Bandhan Nifty Alpha 50 Index Fund, an open-ended index scheme tracking Nifty Alpha 50 Index. The new fund offers investors an opportunity to invest in a well-diversified portfolio of stocks that generated high alpha or relatively higher returns than market over the last one year.

Vishal Kapoor, CEO, Bandhan AMC said: “Traditional passive funds are designed to mimic their benchmark and thus offer broad market-based returns. Bandhan Nifty Alpha 50 Index Fund aims to generate outperformance by selecting stocks with specific factors that produce potentially higher risk-adjusted returns compared to the market. NSE data, as of September 30, 2023, indicates that the Nifty Alpha 50 Index has outperformed the Nifty-50 Index and the Nifty-500 Index, generating an alpha of five per cent over these broad-based indices, albeit with higher volatility. Savvy Investors seeking to add an aggressive strategy to their portfolio could include Bandhan Nifty Alpha 50 Index Fund, to enhance the growth potential of the portfolio.”

Nifty Alpha 50 index follows a structured, quantitative-led process of assigning weights to securities based on alpha values, where security with the highest alpha in index is assigned the highest weight. The alpha strategy adapts to changing market conditions, leveraging compelling investment opportunities across segments. The New Fund Offer will open on Wednesday (October 25), and close on Monday (November 6).