Bandhan Nifty 100 Index Fund
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Business Overview
The Bandhan Nifty 100 Index Fund is a passive investment vehicle that aims to replicate the performance of the Nifty 100 Index, which includes the top 100 companies listed on the National Stock Exchange of India. This fund is ideal for investors seeking diversified exposure to large-cap stocks with minimal management fees. It matters because it offers a straightforward way to invest in India's leading companies, promoting long-term wealth creation.
- Passive investment strategy
- Diversified exposure to top 100 companies
- Ideal for long-term investors
- Low management fees
- Transparent and straightforward investment approach
Investment Thesis
Bandhan Nifty 100 Index Fund stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This combination positions it as a compelling investment opportunity for retail investors seeking long-term growth in the Indian equity market.
- Backed by a reputable promoter group with a proven track record.
- Capitalizing on the growing demand for digital financial services.
- Valuation metrics indicate potential upside compared to industry peers.
- Diversified exposure to top 100 Nifty companies enhances risk management.
- Aligned with India's economic growth trajectory, making it a strategic investment.
Opportunity vs Risk
- Diversified exposure to top 100 companies
- Potential for long-term capital appreciation
- Low expense ratio compared to peers
- Suitable for passive investment strategy
- Market volatility affecting fund performance
- Limited historical performance data
- Economic downturn impact on returns
- Interest rate fluctuations may affect growth
Peer Perspective
Bandhan Nifty 100 Index Fund trades at a slight premium compared to peers like SBI Nifty Index Fund and HDFC Nifty Index Fund. A rerating could occur with improved margin stability and consistent growth in AUM.
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10BusinessHighThe fund is invested in a diversified portfolio of Nifty 100 companies, which are generally in future-ready sectors.
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10GrowthHighThe underlying companies have shown consistent revenue and profit growth.
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10ProfitabilityHighThe fund's constituents exhibit healthy ROE and ROCE, with positive cash flow.
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8ValuationHighValuation metrics like P/E and P/B are in line with peers, indicating fair pricing.
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7BalanceHighThe fund's underlying companies maintain a reasonable debt/equity ratio and liquidity.
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6GovernanceGoodPromoter holding is stable, with minimal pledging and good disclosure practices.
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5DriversGoodGrowth drivers include economic recovery and sectoral tailwinds, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.