The Nifty Alpha 50 index follows a structured, quantitative-led process of assigning weights to the securities based on alpha values, where the security with the highest alpha in the index is assigned the highest weight, a press release said.
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The New Fund Offer will open on October 25 and close on November 6.
“Traditional passive funds are designed to mimic their benchmark and thus offer broad market-based returns. Bandhan Nifty Alpha 50 Index Fund aims to generate outperformance by selecting stocks with specific factors that produce potentially higher risk-adjusted returns compared to the market. NSE data, as of September 30, 2023, indicate that the Nifty Alpha 50 Index has outperformed the Nifty 50 Index and the Nifty 500 Index, generating an alpha of ~5% over these broad-based indices, albeit with higher volatility. Savvy Investors seeking to add an aggressive strategy to their portfolio could include Bandhan Nifty Alpha 50 Index Fund, to enhance the growth potential of the portfolio,” said Vishal Kapoor, CEO, Bandhan AMC.
