Bandhan BSE India Sector leaders Index Fund NFO: Invest in market leaders

Most investors begin their journey by backing giant companies and sector leaders they trust. What if there was a fund that did the same - but in a disciplined, rule-based way?

Introducing a smarter path to leadership-driven investing- the Bandhan BSE India Sector leaders Index Fund, a first-of-its-kind fund. The NFO opens on 3^rd September 2025 and closes on 17^th September 2025. In this article we will review the NFO and understand why it could prove to be a good opportunity for investors looking for long term wealth creation.

What makes market leaders the go-to choice for smart investors?

Sector leaders often enjoy durable competitive advantages - from strong brand loyalty to cost efficiencies - that translate into robust financials and the ability to command premium valuations. Their dominant market position also brings greater resilience during downturns and more consistent profitability over time, making them a compelling long-term investment choice.

BSE India Sector Leaders Index: Wealth creation with the leaders

The Bandhan BSE India Sector Leaders Index Fund, aims to track the underlying index BSE India Sector Leaders Index, a thematic index that tracks the top 3 companies from each sector of the BSE 500 Index. (See graphic)

Source: Bandhan MF. Product presentation, BSE. Data as of the end of 31^st July 2025.

Why is market capitalization used as the parameter to select companies?

Why include multiple sectors in the portfolio?

Sector returns vary widely: Sector returns can differ by 40-50% between top and bottom performers annually. (See graphic below) Therefore, predicting sector winners is extremely difficult. Investing in leading companies in multiple sectors gives an edge to the portfolio to tide over these varying returns from the different sectors.

Source: Bandhan MF. Product presentation. MFI. Data as of 31^stJuly 2025

Why should you invest in BSE India Sector Leaders Index?

• The index covers leaders from across sectors-selecting the top three companies by (float-adjusted) market capitalization within each sector from the BSE 500 index.
  
  

  Top sector and Stock holdings of the BSE India Sector Leaders Index

  The top 10 sectors of the BSE India Sector Leaders Index constitute 68.6% of the underlying securities. (See chart below)

  

  Source: BSE Data as of 31^st July 2025. The sectors are based on the AMFI classification



• Diversification: Rather than being concentrated in just a few popular sectors, the index systematically includes top three firms from each of the 22 sectors, offering balanced representation-be it banking, IT, healthcare, consumer goods, energy, etc. (See graphic below)
  
  

  

  Source: BSE Data as of 31^st July 2025. Macro-economic sector based on AMFI classification. The sectors mentioned above are for illustration purposes and should not be used for the development/implementation of an investment strategy.



• Large Cap bias: Although the BSE India Sector Leaders Index selects its constituents from the broader BSE 500 universe, it leans heavily toward large caps. Over the past couple of years it has consistently favored large-cap stocks, offering greater stability. As of June 30, 2025, large caps made up 82.9% of the index, with mid- and small-caps at 10% and 7.1%, respectively.


• Risk adjusted returns: Historically, the multi sector strategy of investing in leaders has delivered broad market-like returns in the long term with lower volatility.
  
  

  

  Source- BSE. Data as of the end of 31^st July 2025



• Outperformance to broad market indices: The BSE India Sector Leaders Index has outperformed the broad market indices across time frames.
  
  

  

  Source- BSE. Data as of the end of 15^th April 2008 to 31^st July 2025.

The Bandhan BSE India Sector Leaders Index NFO

The Bandhan BSE India Sector Leaders Index Fund NFO tracks the BSE India Sector Leaders Index. The NFO will remain open for subscription from 3^rd September 2025 to 17^th September 2025. The fund is managed by Mr. Abhishek Jain. The investment objective of the Scheme is to replicate the BSE India Sector Leaders Index by investing in securities of the BSE India Sector Leaders Index in the same proportion/weightage with an aim to provide returns before expenses that track the total return of the BSE India Sector Leaders Index, subject to tracking errors. Investment in the Bandhan BSE India Sector Leaders Index Fund will give a diversified exposure to a basket of securities that represent the top performers from multiple sectors, thereby offering competitive returns to the broad markets with reduced volatility.

Who should invest in the Bandhan BSE India Sector Leaders Index NFO?

The fund may be suitable for investors who:

• Looking for an exposure to multiple sectors in the Indian markets


• Want to participate in the growth potential of Industry leaders


• Have a long-term investment horizon of more than 5 to 7 years.


• Have a high to very high-risk appetite

Discuss with your financial planner or mutual fund distributor to understand if the Bandhan BSE India Sector Leaders Index NFO aligns with your investment goals.