Bandhan Nifty 100 Index Fund(IDCW Reinvest)
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Business Overview
The Bandhan Nifty 100 Index Fund (IDCW Reinvest) is a mutual fund that aims to replicate the performance of the Nifty 100 Index, offering investors a diversified portfolio of large-cap Indian companies. Ideal for long-term investors looking for stable growth, this fund provides an easy entry into the equity market with lower risk compared to individual stocks. By reinvesting dividends, it enhances the compounding effect, making it a smart choice for wealth creation.
- Tracks the Nifty 100 Index for diversified exposure
- Ideal for long-term investors
- Lower risk compared to individual stocks
- Reinvests dividends for enhanced compounding
- Managed by experienced professionals
- Transparent and regulated investment option
Investment Thesis
Bandhan Nifty 100 Index Fund presents a compelling investment opportunity due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This fund is well-positioned to leverage India's economic growth, making it a suitable choice for retail investors seeking long-term gains.
- Strong backing from Bandhan Bank, enhancing credibility and trust.
- Significant growth potential in digital services, catering to evolving consumer needs.
- Attractive valuation metrics compared to peer funds, offering potential for higher returns.
- Diversified exposure to top 100 Nifty companies, minimizing risk.
- Ideal for retail investors looking for a blend of stability and growth.
Opportunity vs Risk
- Diversified exposure to Nifty 100
- Potential for long-term capital growth
- Low expense ratio for investors
- Regular dividend reinvestment option
- Market volatility can impact returns
- Economic downturns may affect performance
- Limited historical data for new investors
- Interest rate changes may influence returns
Peer Perspective
Bandhan Nifty 100 Index Fund trades at a slight premium compared to peers like Nippon Nifty 50 and ICICI Nifty Index Fund. A stable margin and consistent growth could trigger a rerating in the near term.
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10BusinessHighThe fund is invested in a diversified index, which provides exposure to future-ready sectors.
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10GrowthHighConsistent revenue and profit growth observed in underlying index constituents.
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10ProfitabilityHighROE and ROCE are satisfactory, but OCF is slightly below net profit.
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8ValuationHighValuation metrics are reasonable compared to peers.
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7BalanceHighThe fund maintains a healthy balance sheet with low debt levels.
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5GovernanceGoodPromoter holding is stable, but there are some concerns regarding disclosures.
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5DriversGoodGrowth drivers are present, but execution risks remain.
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3TechnicalsLowMarket sentiment is neutral with moderate liquidity.