NFO alert: Bandhan Mutual Fund launches Bandhan Nifty Next 50 Index Fund; complete details inside

Bandhan Nifty Next 50 Index Fund will target high-growth large caps with mid-cap potential.

Bandhan Mutual Fund announced the launch of the Bandhan Nifty Next 50 Index Fund, an open-ended scheme designed to track the Nifty Next 50 Index. This index comprises the 50 companies ranked just below the Nifty 50, representing India’s top 100 listed stocks. While categorised as large caps, these companies exhibit growth potential similar to mid and Small-Cap stocks, making them an attractive investment opportunity.

The New Fund Offer (NFO) will open on February 13, 2025, and close on February 25, 2025. Investors can subscribe through licensed mutual fund distributors, online platforms, and the Bandhan Mutual Fund website.

Fund Details
The Bandhan Nifty Next 50 Index Fund is designed for investors seeking exposure to companies on the cusp of becoming market leaders.

Here’s what you need to know:  

• Investment Focus: The fund tracks the Nifty Next 50 Index, which includes 50 companies from diverse sectors like consumer discretionary, FMCG, and IT. These are well-established businesses still in their high-growth phase.  
• Growth Potential: Over the past nine years, 24 companies from this index have graduated to the Nifty 50, highlighting its role as a launchpad for future blue-chip stocks.  
• Historical Performance: The Nifty Next 50 has outperformed the Nifty 50 across multiple market cycles, offering higher risk-adjusted returns for long-term investors.  
• Market Timing: With the index down over 20 per cent recently and trading below its five-year average, historical trends suggest strong recovery potential, making this an opportune investment time.  
• Rebalancing and Methodology: The index is rebalanced twice a year (March and September) and uses a Free Float Market Capitalisation-based weighting system.  
• Accessibility: Investors can participate through licensed mutual fund distributors, online platforms, or through Bandhan Mutual Fund’s website.

Who should invest?
This fund is ideal for those seeking a Large-Cap strategy with the added potential for higher returns, albeit with slightly elevated risk.  

Management Comments
Vishal Kapoor, CEO of Bandhan AMC, shared his perspective on the fund’s potential: “The Nifty Next 50 Index is a unique space in the market, offering access to companies that are already well-established but still in their high-growth phase. These disruptors and innovators across sectors like consumer discretionary, FMCG, and IT—companies with the potential to become tomorrow’s market leaders. Over the past nine years, 24 companies from this index have moved into the Nifty 50, which speaks volumes about its role as a breeding ground for future giants. Historically, the Nifty Next 50 has outperformed the Nifty 50 across multiple market cycles, delivering superior returns for investors who stay the course. With the index currently down over 20% and trading below its five-year average, we’re at a point where past trends suggest strong recoveries often follow. The Bandhan Nifty Next 50 Index Fund allows investors to capitalise on this segment’s long-term growth potential at an opportune moment.”  

Conclusion
The Bandhan Nifty Next 50 Index Fund offers a unique opportunity to invest in the next wave of India’s market leaders. By tracking an index known for its growth potential and historical outperformance, the fund positions investors to benefit from companies on the verge of breaking into the top tier.

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