Bandhan BSE India Sector Leaders Index Fund : NFO Details & Review

• Sushil Bajaj |
• 1 September 2025 |

The Bandhan BSE India Sector Leaders Index Fund is an open-ended equity index scheme that aims to replicate the performance of the BSE India Sector Leaders Index. Being a passively managed fund, it invests in the same stocks and weightages as the index. This gives investors an opportunity to participate in sector-leading companies across industries while benefitting from diversification and long-term wealth creation potential.

---

Quick Snapshot

Particulars	Details
Scheme Name	Bandhan BSE India Sector Leaders Index Fund – Regular (G)
Category	Others – Equity Index
Scheme Type	Open-Ended
Sub-category	Equity – Index
Risk Level	Very High
Fund Manager	Abhishek Jain
Open Date	September 03, 2025
Close Date	September 17, 2025
Minimum Investment	₹1,000
Incremental Investment	₹1,000
Exit Load	0.25%
NAV Calculation	Daily
Repurchase/Redemption	Available

---

Investment Objective

The fund aims to replicate the BSE India Sector Leaders Index by investing in securities of the index in the same proportion and weightage. The objective is to deliver returns that closely track the index before expenses, subject to tracking errors.
👉 However, like any index fund, there is no guarantee of returns, as performance is tied to the movement of the underlying index.

---

Why Invest? (Investment Rationale)

Investors often look for funds that:

• Provide exposure to top-performing sector leaders without stock-picking stress.
• Offer diversification across multiple sectors with strong fundamentals.
• Carry lower expense ratios compared to actively managed funds.

The Bandhan BSE India Sector Leaders Index Fund fits this profile by focusing on sector leaders—companies with dominant market share, strong earnings potential, and high resilience in their industries.

✅ This makes the fund an attractive option for investors who want to participate in India’s growth story through established leaders rather than chasing high-risk small/mid-cap bets.

---

Investment Areas: Sectors & Companies

The underlying BSE India Sector Leaders Index is designed to capture leading companies across various sectors. Typical representation includes:

• Banking & Financials – HDFC Bank, ICICI Bank, SBI
• IT & Technology – Infosys, TCS, Wipro
• Energy & Oil & Gas – Reliance Industries, ONGC
• FMCG & Consumer – Hindustan Unilever, ITC
• Pharmaceuticals & Healthcare – Sun Pharma, Dr. Reddy’s
• Automobiles – Tata Motors, Mahindra & Mahindra
  

By investing, you essentially get exposure to India’s biggest brands and sector leaders that drive economic growth.

---

Investment Strategy

The scheme will be managed passively, ensuring the portfolio mirrors the BSE India Sector Leaders Index. Key elements include:

• Replication – Investments made in the exact weightage as per the index.
• Rebalancing – Portfolio adjusted regularly to minimize tracking errors.
• Diversification – Exposure across sectors to reduce concentration risk.
• Transparency – Investors can track the portfolio since it mirrors a publicly available index.

---

Addressing Investor Pain Points

Many investors hesitate with equity mutual funds due to concerns like:

• ❌ Stock selection confusion → This fund eliminates that by simply tracking sector leaders.
• ❌ High volatility fear → While equity risk exists, investing in leaders adds stability compared to smaller firms.
• ❌ Hidden charges → As a passive index fund, expenses are lower.
• ❌ Short-term loss aversion → This fund suits long-term investors (5+ years) aiming to ride India’s growth wave.

---

FAQs

Q1. What is the risk level of Bandhan BSE India Sector Leaders Index Fund?
It is classified as Very High Risk, given its equity exposure.

Q2. Who should invest in this fund?
Investors with a long-term horizon (5–7 years) seeking diversified exposure to large sector leaders should consider this fund.

Q3. How does it differ from active equity funds?
Unlike active funds where fund managers make stock decisions, this is a passive fund that simply mirrors the index.

Q4. What is the minimum investment amount?
You can start with just ₹1,000.

Q5. Will I get guaranteed returns?
No. Returns depend on the performance of the underlying index

---

Conclusion

This scheme offers investors exposure to sector-leading companies through a passive investment strategy. With the benefits of diversification and potential for long-term wealth creation, it is an attractive option for investors who have a long-term horizon and a strong risk appetite. However, due to its very high-risk profile, investors should carefully evaluate their tolerance before investing.

---