Upcoming NFO: Bandhan Mutual Fund Files Draft for Nifty Commodities Index Fund

Bandhan Mutual Fund has filed the scheme document for the Bandhan Nifty Commodities Index Fund. The open-ended scheme will track the Nifty Commodities Index by investing in the stocks included in it, broadly in the same proportions. 

The fund aims to match the index’s returns before expenses. Actual returns may differ because of tracking errors and other costs. The scheme does not guarantee returns. 

Companies and Sectors Covered 

The Nifty Commodities Index includes 30 companies from sectors such as oil and petroleum products, cement, power, chemicals, sugar, metals and mining. 

Companies are weighted according to their free-float market capitalisation, with each stock capped at 10% of the index. The index is reviewed and rebalanced twice a year, in March and September. 

Investment Pattern 

The scheme will invest 95% to 100% of its assets in securities that form part of the index. This may include stocks and equity derivatives. The remaining 0% to 5% can be held in money market and liquid instruments. 

The fund will follow a passive investment approach, changing its holdings when the index composition or stock weights change. It may use equity derivatives if shares are unavailable or cannot be bought in sufficient quantities.  

The scheme will not invest in commodity derivatives or overseas securities. 

Minimum Investment and Charges 

The New Fund Offer (NFO) price is ₹10 per unit. The minimum lump-sum investment is ₹1,000. Investors can start a systematic investment plan (SIP) with ₹100, subject to a minimum of six instalments. 

Additional purchases require a minimum of ₹1,000, while SIP investments start at ₹100. The scheme has Regular and Direct plans, both under the Growth option. There is no exit load. 

The scheme document, dated 13 October 2026, does not specify the NFO opening and closing dates. 

Redemption and Risks 

Investors can purchase or redeem units on business days at the applicable net asset value (NAV). Redemption proceeds are generally dispatched within three working days after a valid request is accepted. 

The scheme is subject to equity market risks. Its returns may differ from the index because of portfolio differences, transaction costs, liquidity conditions, and the timing of trades. 

Read More: NFO Alert: SBI Mutual Fund Launches SBI BSE India Defence ETF! 

Conclusion 

The fund will track the Nifty Commodities Index, which covers 30 companies across several commodity-related sectors. Returns will depend on market performance and may vary from those of the index. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.