Bandhan BSE India Sector Leaders Index Fund NFO Hits Market on September 3, 2025

The Bandhan BSE India Sector Leaders Index Fund is an open-ended index fund designed to replicate the performance of the BSE India Sector Leaders Index. It aims to generate returns that closely track the total return of the benchmark index, subject to tracking error. The scheme invests in equity and equity-related instruments that form part of the index, ensuring exposure to leading companies across different sectors. With a low minimum investment, flexibility of SIP and lump sum options, and daily liquidity, the NFO offers an affordable way for investors to participate in India’s sectoral growth story. However, returns are not guaranteed as market, liquidity, and tracking error risks remain inherent to index funds.

Key Features of Bandhan BSE India Sector Leaders Index Fund

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• Opening Date: Sep 03, 2025
• Closing Date: Sep 17, 2025
• Exit Load: 0.25% if redeemed within 15 days from allotment; Nil
• Minimum Investment: ₹1,000 for lumpsum; ₹100 for SIP (minimum 6 instalments)

Objective of Bandhan BSE India Sector Leaders Index Fund

The objective of the Bandhan BSE India Sector Leaders Index Fund-Direct (G) is to mirror the BSE India Sector Leaders Index by investing in its constituent stocks in the same proportion, aiming to deliver returns before expenses that are aligned with the benchmark.

Investment Strategy of Bandhan BSE India Sector Leaders Index Fund

• A passive management style focused on replicating the index.
• Investments will be made in proportion to the weights of index constituents.
• Regular portfolio rebalancing will be done to reduce tracking error.
• Portfolio adjustments will consider index changes, investor inflows/outflows, and market liquidity.
• Strict adherence to SEBI guidelines and index methodology will be maintained.

Risks Associated with Bandhan BSE India Sector Leaders Index Fund

• Market Risk: Equity markets may fluctuate due to economic, political, or policy factors.
• Liquidity Risk: Some stocks may have lower trading volumes, impacting timely buy/sell decisions.
• Tracking Error: Returns may deviate from the benchmark due to expenses, market liquidity, or delayed trades.
• Derivatives Risk: If used, derivatives may carry valuation, counterparty, and execution risks.
• Debt Risks: In case of temporary cash allocation, risks like interest rate fluctuations, reinvestment risk, and credit risk may arise.

Risk Mitigation Strategy by Bandhan BSE India Sector Leaders Index Fund

The Bandhan BSE India Sector Leaders Index Fund-Direct (G) seeks to mitigate risks by closely aligning with the benchmark index and maintaining a low tracking error through timely rebalancing. Liquidity risks are minimised as the index constituents are primarily large-cap and liquid stocks. Derivative usage, if any, will be restricted to exchange-traded instruments with guaranteed settlement. For debt or cash components, the fund will prefer shorter maturity instruments and high-quality securities to manage volatility and credit exposure. Overall, the scheme follows a passive, rule-based approach, reducing active decision-making risk while maintaining transparency for investors.

What Type of Investor Should Invest in Bandhan BSE India Sector Leaders Index Fund?

• Long-term investors seeking exposure to India’s leading sectoral companies.
• Investors looking for a passive equity investment aligned with a benchmark.
• Those comfortable with market risks and willing to accept short-term volatility.
• Investors seeking diversification through a low-cost index strategy.

Where Will the Bandhan BSE India Sector Leaders Index Fund Invest?

• Equity and equity-related instruments of companies forming the BSE India Sector Leaders Index.
• In proportion to their weights in the index, ensuring replication.
• Temporary allocation to debt or money market instruments for liquidity needs.
• Securities lending and short selling as permitted by SEBI.