Bandhan Mutual Fund Launches Bandhan Nifty Bank Index Fund

Bhubaneswar : Bandhan Mutual Fund announced the launch of the Bandhan Nifty Bank Index Fund, an open-ended scheme tracking the Nifty Bank Index. The index comprises India’s leading banks, with private sector banks comprising 85% of the weight, and public sector banks making up the remainder. The fund presents a convenient opportunity to invest in India’s largest and most liquid banking stocks. The New Fund Offer (NFO) will open on Thursday, 8 August 2024, and close on Thursday, 22 August 2024. Investments can be made through licensed mutual fund distributors, online platforms, and directly at https://bandhanmutual.com/nfo/bandhan-nifty-bank-index-fund/.

Highlighting why investors should consider the Bandhan Nifty Bank Index Fund, Vishal Kapoor, CEO, Bandhan AMC, said, “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. Investors looking to enhance their portfolios with the banking sector’s growth potential can consider this fund.”

Historical data shows that, on average, the Nifty Bank Index has outperformed the Nifty 50 Index by 2% p.a. on arolling return basis over various time frames.Additionally, the index is currently trading at a discount to its 10-year average P/E ratio, presenting an attractive investment opportunity.