The Bandhan Nifty Smallcap 250 Index Fund is designed for investors looking to diversify their portfolio with exposure to small-cap stocks in India. This fund tracks the Nifty Smallcap 250 Index, providing a broad representation of the small-cap segment. It is ideal for those seeking long-term capital appreciation and willing to embrace the potential volatility of smaller companies. Investing in this fund allows you to participate in the growth of emerging businesses, contributing to a balanced investment strategy.

Targets small-cap stocks for high growth potential
Tracks the Nifty Smallcap 250 Index
Ideal for long-term investors
Offers diversification in your portfolio
Access to emerging businesses in India
Managed by experienced professionals

Investment Thesis

The Bandhan Nifty Smallcap 250 Index Fund presents a compelling investment opportunity, driven by a strong promoter group and credibility in the market. With a significant growth runway in digital services and attractive valuations compared to peers, this fund is well-positioned for long-term gains.

Strong promoter group with a proven track record enhances trust and stability.
Digital services sector poised for robust growth, benefiting fund constituents.
Attractive valuation metrics compared to peers suggest potential for price appreciation.
Diversified exposure to smallcap stocks offers growth potential and risk mitigation.
Aligns with the increasing trend of retail investors seeking smallcap opportunities.

Opportunity vs Risk

Opportunities

Diversification in smallcap sector
Potential for high growth
Exposure to emerging companies
Low expense ratio
Long-term investment horizon

Risks ⚠️

Market volatility
Economic downturn impact
Liquidity concerns
Management performance variability
Regulatory changes

Peer Perspective

Bandhan Nifty Smallcap 250 Index Fund is currently trading at a slight discount compared to its peers like DSP Small Cap Fund and Kotak Small Cap Fund. A rerating could occur with improved margin stability.

📊 Stock Investment Checklist (100 Points)

Bandhan Nifty Smallcap 250 Index Fund • Updated: 2025-09-29 11:10:20

10

Business
High

The fund is invested in a diverse range of smallcap companies, which are often in growth sectors, but individual company moats vary.
10

Growth
High

The smallcap sector has shown potential for high growth, but consistency can be volatile.
8

Profitability
High

Profitability metrics vary widely among smallcap stocks, with some showing strong ROE and OCF.
10

Valuation
High

Valuations are mixed; some holdings are overvalued compared to peers.
6

Balance
Good

Debt levels can be concerning in some smallcap companies, affecting overall balance.
7

Governance
High

Promoter holding is generally strong, but some companies have issues with pledging.
5

Drivers
Good

Growth drivers exist, but execution risks are significant in the smallcap space.
5

Technicals
Good

Market sentiment is mixed; liquidity can be an issue for smaller stocks.

Final Score & Verdict

Score 48 / 100 • Decent

The Bandhan Nifty Smallcap 250 Index Fund offers exposure to growth potential in the smallcap segment, but investors should be cautious of volatility and varying profitability among its holdings.