Bandhan Nifty Alpha 50 Index Fund: New scheme to invest in alpha-generating stocks. Check details

financialexpress.com:

Bandhan Mutual Fund today (October 23) announced the launch of Bandhan Nifty Alpha 50 Index Fund. It is an open-ended index scheme tracking the Nifty Alpha 50 Index, which provides investors with an opportunity to invest in a well-diversified portfolio of stocks that have generated high alpha (relatively higher returns than the market) over the last one year.

In a statement, the AMC said that the Nifty Alpha 50 index follows a structured, quantitative-led process of assigning weights to securities based on alpha values, where the security with the highest alpha in the index is assigned the highest weight. “This rule-based approach leaves no room for bias when making investment decisions. The alpha strategy adapts to the changing market conditions, leveraging compelling investment opportunities across segments,” the AMC said.

The New Fund Offer of Bandhan Nifty Alpha 50 Index Fund will open on Wednesday, October 25, 2023, and close on Monday, November 06, 2023.

Investment in the Bandhan Nifty Alpha 50 Index Fund can be made through licensed mutual fund distributors and online platforms and directly on the Bandhan Mutual Fund website.

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Highlighting the key reasons to consider the Nifty Alpha 50 Index strategy, Vishal Kapoor, CEO, of Bandhan AMC said, “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