Kolkata: Low volatility in investments is one of the cherished goals of any investor. In this time of high volatility, Bandhan Mutual Fund has floated Bandhan Nifty Alpha Low Volatility 30 Index Fund NFO. It will perhaps be worthwhile to explore the details of this fund.
According to the NFO document, Bandhan Nifty Alpha Low Volatility 30 Index Fund will track the Nifty Alpha low volatility 30 index based on “selecting 30 stocks based on Alpha (potential for higher returns) and Low Volatility (relatively stable performance during market fluctuations).”
Bandhan Mutual Fund authorities say that this fund will combine Alpha for growth potential and Low Volatility for relative stability – a combination that is the dream of most investors in any age. This fund, according to the AMC management, will mitigate risks by decreasing reliance on any single factor. Thus, it will try to score higher on consistency on performance. Like all index funds, it is a passive fund.
Bandhan Nifty Alpha Low Volatility 30 Index Fund features
NFO opens: January 8, 2025
NFO closes: January 20, 2025
Allotment date: January 24, 2025
Type of fund: Open-ended
Category: Equity (large and mid-cap)
Minimum investment: Rs 1,000
Exit Load: 0.25% if redeemed within 15 days of investment
Risk-o-meter: Very high
Benchmark index: Nifty Alpha Low Volatility 30
Fund Manager: Nemish Sheth
Many passive funds were launched in 2024
Reports indicate that 116 passive mutual funds were launched in the country in 2024. Also, the entire domain of passive investments zoomed throughout 2024. Several of the funds launched in 2024 were firsts in the industry. These tracked niche and newly-crafted indices such as real estate, electric vehicles, and new-age automotive sectors. According to reports, the AUM (assets under management) of passive fund witnessed a significant increase due to these new launches.
“Investors are coming alive to a realisation that no fund manager can provide you consistently superior returns year after year. It is practically impossible for a fund manager to deliver alpha returns – returns that continuously beat a chosen index,” said investment strategist Nilanjan Dey, who is also the director of Wishlist Capital.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
No investor perhaps likes high volatility. The investment objective of Bandhan Nifty Alpha Low Volatility 30 Index Fund is to replicate the Nifty Alpha Low Volatility 30 Index by investing in securities of the Nifty Alpha Low Volatility 30 Index in identical proportion with an aim to providing returns that track the total return of Nifty Alpha Low Volatility 30 Index. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
