Bandhan Mutual Fund launches two new index funds providing value and momentum strategies for investors

Bandhan Nifty 500 Value 50 and Momentum 50 Index Funds are designed to capitalise on undervalued stocks and top-performing trends.

Bandhan Mutual Fund announced two innovative additions to its product lineup: the Bandhan Nifty 500 Value 50 Index Fund and the Bandhan Nifty 500 Momentum 50 Index Fund. These open-ended index funds aim to provide exposure to distinct factor-based strategies, offering investors a targeted approach to the stock market.

The Bandhan Nifty 500 Value 50 Index Fund focuses on 50 undervalued companies from the Nifty 500 universe, while the Bandhan Nifty 500 Momentum 50 Index Fund tracks the 50 stocks with strong recent performance, betting on their continued growth momentum.

The New Fund Offers (NFOs) for these two funds are open from Monday, October 14, 2024, to Thursday, October 24, 2024. Investors can access these funds through licensed distributors, online platforms, or directly through Bandhan Mutual Fund's website.

Key Highlights of Bandhan Mutual Fund NFOs

• Two New Factor-Based Index Funds:
  • Bandhan Nifty 500 Value 50 Index Fund: Focuses on undervalued stocks with strong recovery potential.
  • Bandhan Nifty 500 Momentum 50 Index Fund: Targets stocks with a solid recent performance, betting on continued upward momentum.
• NFO Open Period: October 14, 2024 – October 24, 2024.
• Rebalancing Frequency: Both funds are rebalanced semi-annually to reflect changing market conditions and ensure continued alignment with their investment strategies.
• Investment Access: Available through mutual fund distributors, online platforms, or direct investment links.

Management Comments
Vishal Kapoor, CEO of Bandhan AMC, expressed confidence in the potential of these new funds, emphasizing the growing popularity of factor-based investing in India. He said, "Factor Investing has gained considerable traction as it targets specific characteristics that have historically driven risk or returns. The Bandhan Nifty 500 Value 50 Index Fund aims to offer exposure to out-of-favour stocks trading below their intrinsic value and capitalize on their potential recovery. Meanwhile, the Bandhan Nifty 500 Momentum 50 Index Fund focuses on stocks with strong recent performance, with the expectation that the upward trend will persist in the short term."

Should you invest?
Bandhan Mutual Fund's latest offerings provide investors with unique opportunities to diversify their portfolios and benefit from factor-based strategies. Whether you're looking for undervalued stocks with recovery potential or stocks riding a wave of upward momentum, these new funds offer a solid option for Indian investors looking to align their portfolios with value and momentum strategies. Consider your risk tolerance, investment goals, and market outlook when deciding which strategy best suits your needs.

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