Bandhan Nifty Alpha 50 Index Fund Regular Plan Growth

Updated: 06-10-2025 06:00:08 AM

Investment Objective

Bandhan Nifty Alpha 50 Index Fund seeks to replicate the returns from the Nifty Alpha 50 Index by investing in the underlying securities of the index in the same weightage or proportion, subject to tracking errors.

Investment Strategies

• Bandhan Nifty Alpha 50 Index Fund passively invests in companies included in the Nifty Alpha 50 Index in proportion to their weights assigned in the index.
• The scheme seeks to reduce the tracking error to the least possible by rebalancing the portfolio after factoring in the changes in the weights of stocks included in the index and the incremental redemptions/collections in the scheme.
• The index followed by this passive fund has been designed on the basis of ‘Alpha Factor Strategy’, which is primarily a strategy of investing in equities generating significant alpha (excess return over the benchmark for the same amount of risk) over the market. This strategy includes the systematic exclusion of securities having declining alpha
• The stocks included in the Nifty Alpha 50 Index are the top 50 alpha generating stocks picked from the list of top 300 companies in India in terms of free float market capitalisation.

Who Should Invest 

• Bandhan Nifty Alpha 50 Index Fund is suitable for investors seeking long term wealth creation opportunities
• Investors seeking to invest in this fund should have a minimum investment horizon of 3 years.
• Investors should have a high risk appetite as the fund is vulnerable to market volatility, tracking errors, liquidity risk, settlement risks and other risks.
• Investors seeking passive exposure to the Nifty Alpha 50 Index to benefit from the highest alpha generating established companies can invest in this fund.
• Investors seeking to add an aggressive strategy to enhance their portfolio returns can also consider this fund.
• This fund is not suitable for investors seeking a diversified portfolio as the fund solely invests high-alpha stocks as per the weightage assigned in the Nifty Alpha 50 Index rather than spreading their exposure across market caps or asset classes.

Frequently Asked Questions

What is the risk level of Bandhan Nifty Alpha 50 Index Fund?
As per the fund factsheet published by the fund house, Bandhan Nifty Alpha 50 Index Fund is considered to carry ‘Very High Risk’ for its investors.

Is there any lock-in period in Bandhan Nifty Alpha 50 Index Fund?
Bandhan Nifty Alpha 50 Index Fund has no lock-in period. Thus, the investors of Bandhan Nifty Alpha 50 Index Fund are free to make redemption requests on any date as per their requirements.

What type of mutual fund is the Bandhan Nifty Alpha 50 Index Fund?
Bandhan Nifty Alpha 50 Index Fund is an open-ended equity mutual fund scheme. The fund belongs to the ‘ETF & Index Fund Category’ tracking the Nifty Alpha 50 Index.

Is the Bandhan Nifty Alpha 50 Index Fund open-ended or close-ended?
Bandhan Nifty Alpha 50 Index Fund is an open-ended equity mutual fund scheme.

What is the benchmark index for this Bandhan Nifty Alpha 50 Index Fund?
Nifty Alpha 50 Index TRI is the benchmark index of Bandhan Nifty Alpha 50 Index Fund.