Bandhan Mutual Fund has launched the Bandhan Nifty Bank Index Fund, an open-ended scheme designed to track the Nifty Bank Index. This index includes India’s leading banks, with private sector banks comprising 85% of the weight and public sector banks making up the rest. The New Fund Offer (NFO) opens on August 08, 2024, and closes on August 22, 2024. Investments can be made through licensed mutual fund distributors, online platforms, and directly at Bandhan Mutual Fund’s website.
Vishal Kapoor, CEO of Bandhan AMC, emphasized the potential of the new fund, stating, “As India’s GDP climbs, so does the demand for credit and broader financial services, setting the stage for banks to flourish. Our banks, once burdened by high NPAs and low profitability, have transformed remarkably. They now stand well-capitalised and are likely to witness increased profitability, poised to fuel the country’s growth. The Bandhan Nifty Bank Index Fund offers investors a simple and relatively cost-efficient way to invest in this sector.”
Historical data indicates that the Nifty Bank Index has consistently outperformed the Nifty 50 Index by an average of 2% per annum on a rolling return basis. Currently trading at a discount to its 10-year average P/E ratio, the index presents an appealing investment opportunity.In Kolkata, local investors are expected to show strong interest in the Bandhan Nifty Bank Index Fund. Given Kolkata’s robust banking sector and the city’s strategic importance in India’s financial landscape, the fund’s focus on banking stocks aligns well with the investment goals of many in the region. As a financial hub, Kolkata’s investors are keen on opportunities that promise growth and stability, making this fund particularly attractive.
