Bandhan Mutual Fund launches Bandhan Nifty Alpha Low Volatility 30 Index Fund: A new strategy for balanced growth and stability

Bandhan Nifty Alpha Low Volatility 30 Index Fund is a unique multi-factor fund aimed at delivering consistent returns with growth potential and low volatility.

Bandhan Mutual Fund has unveiled its latest offering, the Bandhan Nifty Alpha Low Volatility 30 Index Fund, an open-ended scheme designed to cater to investors looking for growth and stability. The fund tracks the Nifty Alpha Low Volatility 30 Index, which identifies stocks that have consistently generated alpha while exhibiting lower volatility. With market conditions remaining unpredictable, this fund’s dual-factor approach promises an attractive investment opportunity, particularly for those looking for steady growth amid market fluctuations.

The New Fund Offer (NFO) for this scheme opens on January 8, 2025, and closes on January 20, 2025.

Features of the Bandhan Nifty Alpha Low Volatility 30 Index Fund

• Fund Type: Open-ended
• Investment Strategy: Multi-factor approach combining Alpha (growth potential) and Low Volatility (relative stability).
• Underlying Index: Nifty Alpha Low Volatility 30 Index
• Stock Selection Criteria: Stocks that historically generate alpha while maintaining lower volatility compared to the broader market.
• Risk Profile: Aimed at high-risk investors looking to balance growth with stability.
• Fund Objective: To capture growth opportunities while providing stability in uncertain market conditions, thereby delivering consistent performance across market cycles.

Fund Details

• New Fund Offer (NFO) Dates: January 8, 2025 - January 20, 2025
• Subscription Channels: Investors can subscribe through licensed mutual fund distributors, online platforms, or directly on Bandhan Mutual Fund’s official website.

Management Comments
Vishal Kapoor, CEO of Bandhan AMC, emphasized the importance of a balanced investment strategy, saying, “Investors today need strategies that balance ambition with caution. While each investment factor tends to deliver long-term excess returns, these returns may not always be consistently positive over shorter time horizons. Our multi-factor approach combines Alpha for growth potential with Low Volatility for relative stability, aiming to deliver robust risk-adjusted returns across varying market conditions. Historically, the Nifty Alpha Low Volatility 30 Index has outperformed both broad market indices and single-factor indices, achieving this outperformance at lower or similar volatility levels.”

Should You Invest
The Bandhan Nifty Alpha Low Volatility 30 Index Fund is ideal for investors with a high-risk appetite and those seeking long-term wealth creation while maintaining a balance between growth potential and stability. The fund’s strategy is particularly suited for investors who want to diversify their portfolios and avoid the extreme volatility that can come with single-factor strategies.

By combining alpha generation with low volatility, the fund aims to provide a strong risk-adjusted return, making it a compelling option for those looking to invest in dynamic, multi-factor strategies.

Conclusion
In summary, if you are someone who aims to capitalise on growth opportunities without exposing your portfolio to excessive risk, the Bandhan Nifty Alpha Low Volatility 30 Index Fund may be a smart addition to your investment strategy. However, like any investment, it’s essential to assess your risk tolerance, and financial goals, and consult with a financial advisor before making any decisions.

Disclaimer: The article is for informational purposes only and not investment advice.